It’s tax season. Oh bully! It’s also a prudent time to take a look at what states have the highest and lowest tax rates in the union.
WalletHub released a new study to examine just what states are tax-friendly and what states just want to suck its citizens dry. Right now, Alaska has the lowest tax rates (that can’t last considering falling oil prices) and Illinois has the highest tax rates.
Here is the list (the overall list includes the District of Columbia):
States with the highest tax rates:
42. New Jersey
43. Iowa
44. Ohio
45. Michigan
46. New York
47. Rhode Island
48. Connecticut
49. Wisconsin
50. Nebraska
51. Illinois
States with the lowest tax rates:
1. Alaska
2. Delaware
3. Montana
4 Wyoming
5. Nevada
6. Tennessee
7. Idaho
8. California
9. South Carolina
10. Florida
Tax rates are 10.56 percent higher in blue states ($6,040) than red states ($5,463). When it comes to sales tax rates, Washington has the highest with 8.16 percent, while Oregon has the lowest with 0.93 percent.
Meanwhile, New York has the largest cigarette excise-tax with $4.35, which is 26 times higher compared to Missouri, which has the lowest with $0.17. Pennsylvania maintains the highest gas tax ($0.50 per gallon), while Alaska has the lowest ($0.1225 per gallon).
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