Category: state tax

At a time when the cost of all from gas to Netflix is rising, there’s a excellent chance that one of your expenses will decline: your state tax bill.

Awash in budget surpluses, lawmakers are cutting taxes on all from income to groceries, and the trend isn’t limited to red states. Several Free senate, counting New York Gov. Kathy Hochul and Illinois Gov. J.B. Pritzker, have supported broad tax cuts for state residents. “If your state isn’t cutting taxes this year, it’s in the underground,” says Katherine Loughead, senior policy analyst for the Tax Foundation, a tax investigate establishment. 

Some of the tax cuts are fleeting, while others could everlastingly lower residents’ tax bills. For example, Mississippi enacted legislation that will lower the state’s top income tax rate from 5% to 4% by 2026, and Gov. Tate Reeves has indicated he’d like to eventually phase out the tax when all’s said and done. In April, Georgia Gov. Brian Kemp signed legislation that will merge the state’s six income tax brackets into a flat rate of 4.99% as soon as 2029. The Peach State’s highest income bracket is now 5.75%. Iowa is lowering its top tax rate of 8.53% to a flat rate of 3.9% by 2026. “They’re going from one of the highest income tax rates to a honestly competitive rate,” Loughead says. 

Other targets of state tax cutters: 

Real estate. Home values have soared in recent years, and while that may seem like a nice problem for homeowners to have, it can also mean a huge jump in material goods tax bills. In New Jersey, which has the highest material goods taxes in the U.S., Gov. Phil Murphy has projected as long as material goods tax rebates of up to $700 per homeowner. The tax relief package enacted in Illinois includes a material goods tax rebate of up to $300 per homeowner (Illinois has the second-highest median material goods tax rate in the U.S.).

Retirement income. New Mexico lawmakers just voted to exclude Social Wellbeing from state taxes for most residents, while Utah lawmakers prolonged eligibility for a tax credit that offsets a part of taxes on Social Wellbeing refund. Early in 2023, Alabama residents who are 65 or older will be allowed to exempt from state taxes up to $6,000 in withdrawals from IRAs and other retirement plans.

Groceries and gas. In an effort to lessen the pain at the pump, a number of states have for the interim reduced or eliminated gas taxes. Now, they’re looking to provide relief at the grocery store, too. Kansas is phasing out its tax on groceries, while Oklahoma Gov. Kevin Stitt has called for doing the same in his state. Illinois and Tennessee are suspending their grocery taxes for the interim.

Past taxes. Some state lawmakers don’t want to wait until next year’s tax-filing season to provide relief to their residents. Earlier this year, Idaho Gov. Brad Small signed legislation that will provide a rebate of $75 per full-time inhabitant and each needy, or 12% of their 2020 tax liability, whichever is greater. New Mexico lawmakers enacted legislation that will provide residents with a rebate of $500, or $1,000 for married couples that file jointly. Other states will be sending inhabitant rebate checks this year, too (or are taking into account it).

Some tax analysts warn that broad tax cuts could return if tax revenue slows. The jump in states’ tax revenue between 2020 and 2021 reflected “a federal policy response to a once-in-a-century crisis that jump-started the economy,” says Richard Auxier, senior policy normal at the Urban-Brookings Tax Policy Center, a tax investigate nonprofit. While tax revenue remained strong during the first half of 2022, states are forecasting that growth will slow in the second half of fiscal 2022 and weaken much in fiscal 2023, according to Lucy Dadayan, senior investigate normal for the Tax Policy Center. “The current global geopolitical crisis, nonstop suspicions related to the ongoing endemic, high inflation and evolving federal fiscal policy could all muddle the revenue outlook for the states,” Dadayan wrote in a blog post.

With that in mind, sending state taxpayers rebate checks is a more prudent way to deal with budget surpluses than everlastingly cutting tax rates, Auxier says. “If a state pushes out rebate checks this year and things don’t look so fantastic next year, they haven’t done any hurt,” he says. 

Some states have tied tax rate reductions to revenue growth. Georgia’s tax cuts, for example, are body on meeting revenue projections. Also, legislation enacted in Kentucky, which will reduce the state’s flat tax to 4.5% from 5% in 2023, imposes annual rate reductions of 0.5%, but only if the state’s cash capital hold up and revenue exceeds costs. If those goals are met, Republican lawmakers hope to phase out the state’s income tax completely. They say the tax cuts are needed to make Kentucky more competitive in attracting new residents with neighboring Tennessee, which has no income tax. 

Other states also feel compelled to make themselves more arresting to a labor force that has become increasingly mobile in the wake of the endemic, Loughead says. More workers having the option of working in the least is “one of the driving factors behind states’ desire to cut income tax rates and even phase out income taxes,” she says. “People are really attracted to low- and no-income-tax states.”

Bottom Line

Middle-Class Families: Least Tax-Forthcoming (Go to the Kiplinger Tax Map for Middle-Class Families)
Retirees: Least Tax-Forthcoming (Go to the Kiplinger Tax Map for Retirees)

New York’s state income taxes are commonly average for most residents. But, New York City and Yonkers tack on their own income taxes, and there’s a tourist tax for people working in and around the Huge Apple.

Things start to get terrible when you look at sales taxes. New York’s average collective state and local sales tax rate is the 10th-highest in the country, according to the Tax Foundation.

And then things go from terrible to worse when material goods taxes are added to the mix. New York’s median material goods tax rate is the eighth-highest in the U.S. New York also has an estate tax with a special “cliff” feature that can result in a huge tax bill when you die.

New York Income Taxes

New York Income Tax Range

Low: 4% (on up to $8,500 of taxable income for single filers and up to $17,150 for married couples filing jointly)

High: 10.9% (on taxable income over $25 million, in any case of filing status)

Admittance in 2028, the highest rate will fall to 8.82% on taxable income over $1,077,550 for single filers and over $2,155,350 for married couples filing jointly.

New York City and Yonkers impose their own income tax. A tourist tax is also imposed on residents of New York City, as well as on residents of Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester Counties.

New York Taxation of Social Wellbeing Refund

Social Wellbeing refund are not taxed by the state.

New York Tax Breaks for Other Retirement Income

Income from federal regime, New York state and local regime, and air force retirement plans is exempt.

In addendum, taxpayers age 59 1/2 and older can exclude up to $20,000 of federally-taxed income from private retirement plans or regime plans from another state.

Railroad Retirement refund are fully exempt.

New York Sales Tax

4% state levy. Localities can add as much as 4.875%, and the average collective rate is 8.52%, according to the Tax Foundation. In the New York City metro area, there is an bonus 0.375% sales tax to support transit.

• Groceries: Exempt
• Clothing: Exempt if under $110
• Motor Vehicles: Taxable
• Prescription Drugs: Exempt

New York Real Material goods Taxes

In New York, the median material goods tax rate is $1,720 per $100,000 of assessed home value.

New York Material goods Tax Breaks for Retirees

New York State law gives local governments and public-school districts the option of giving way a saving on the amount of material goods taxes paid by qualifying senior citizens by sinking the assessed value of housing material goods owned by seniors by 50%. To qualify, seniors must be 65 or older and meet certain income limitations and other equipment. For the 50% resistance, the law allows each county, city, town, village or school constituency to set the maximum income limit between $3,000 and $50,000. Under the so-called sliding-scale option, localities may also grant an resistance of less than 50% to senior citizens with yearly incomes over $50,000 but less than $58,400.

There is also an Enhanced STAR program for seniors. The Enhanced STAR resistance is void for the primary residences of senior citizens (age 65 and older) with annual household incomes not exceeding the statewide ordinary. Collective income must be $92,000 or less for 2022 refund ($93,200 or less for 2023 refund). For qualifying senior citizens, the Enhanced STAR program exempts part of the value of their home from school material goods taxes.

New York Motor Fuel Taxes

Petrol: 48.22¢ per gallon (varies by county).
Diesel: 46.98¢ per gallon (varies by county).

New York Sin Taxes

Cigarettes and small cigars: $4.35 per pack (in New York City, an extra $1.50 per pack)
Snuff: $2 per container one ounce or less, $2 per ounce for larger containers
Cigars and other tobacco harvest: 75% of the indiscriminate price
Vapor harvest: 20% of retail price

Beer: $0.14 per gallon (New York City charges an bonus $0.12 per gallon)
Wine: $0.30 per gallon
Liquor: $6.44 per gallon for liquor containing more than 24% alcohol by volume (New York City charges an bonus $1 per gallon); $2.54 per gallon for liquor containing more than 2% but less than 24% alcohol by volume

Marijuana: Distributors taxed at rate of five-tenths of one cent per milligram of THC for cannabis flower, eight-tenths of one cent per milligram of THC for concentrated cannabis, and three cents per milligram of THC for cannabis edible harvest; 9% state tax on retail sales; 4% local tax on retail sales may also apply

New York Estate and Inheritance Taxes

For 2022, estates exceeding $6.11 million are subject to New York’s estate tax. Taxable gifts made by the decedent as a New York inhabitant within three years prior to death are built-in as part of the estate. Tax rates range from 3.06% to 16%.

The New York estate tax is a “cliff tax.” That means if the value of the estate is more than 105% of the current resistance, the resistance won’t be void and the entire estate will be subject to state estate tax.

As the COVID-19 endemic drags on, more and more Americans are getting an uninvited crash course on the U.S. unemployment compensation system. There are a lot of common questions for people seeking unemployment refund for the first time. How do I apply for refund? How much will I get? How long will the refund last? People need answers to these questions straight away. But, before long, another inquiry will likely spring to mind: Will I have to pay taxes on my unemployment refund?

When it comes to federal income taxes, the general answer is yes. Uncle Sam taxes unemployment refund as if they were wages (even if up to $10,200 of unemployment compensation expected in 2020 is exempt from federal tax for people with an adjusted yucky income below $150,000). But, when it comes to state income taxes, it depends on where you live. Most states fully tax unemployment refund. But, some states don’t tax them at all (now and again because the state doesn’t have an income tax), and a handful of states will only tax part of your refund. Plus, like the federal regime, some states are making special exceptions to their general rule for 2020 and/or 2021 to help people who lost their job because of the endemic.

Where does your state stand when it comes to taxing unemployment refund? Read on to find out. We also outline each state’s income, sales, and material goods tax levels — and provide a link to the state’s page in our State-by-State Guide to Taxes on Middle-Class Families — so you can get a sense of the overall tax burden where you live.

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Alabama

State Taxes on Unemployment Refund: Alabama does not tax unemployment refund. In addendum, the first $25,000 expected from an employer as partition pay, unemployment compensation, and the like as a result of “administrative downsizing” is not taxed.

State Income Tax Range: Low: 2% (on up to $1,000 of taxable income for married joint filers and up to $500 for all others). High: 5% (on more than $6,000 of taxable income for married joint filers and more than $3,000 for all others). Some Alabama municipalities also impose job-related taxes on salaries and wages.

Sales Tax: 4% state levy. Localities can add as much as 7.5% to that, and the average collective rate is 9.22%, according to the Tax Foundation.

Material goods Taxes: In Alabama, the median material goods tax rate is $395 per $100,000 of assessed home value.

For more in rank, go to the Alabama State Tax Guide for Middle-Class Families.

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Alaska

State Taxes on Unemployment Refund: Alaska does not tax unemployment compensation.

State Income Tax Range: There is no state income tax.

Sales Tax: Alaska is one of five states with no state sales tax. But, localities can levy sales taxes, which can go as high as 7.5%. But, according to the Tax Foundation, the statewide average is only 1.76%.

Material goods Taxes: In Alaska, the median material goods tax rate is $1,182 per $100,000 of assessed home value.

For more in rank, go to the Alaska State Tax Guide for Middle-Class Families.

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Arizona

State Taxes on Unemployment Refund: Arizona taxes unemployment compensation to the same extent as it is taxed under federal law.

State Income Tax Range: Low: 2.59% (on up to $54,544 of taxable income for married filers and up to $27,272 for single filers). High: 4.5% (on $327,263 and over of taxable income for married joint filers and $163,632 and over for single filers). Early in 2021, Proposition 208 (ordinary by voters on the November 3, 2020, ballot) imposes a 3.5% surtax on taxable income over $500,000 for joint filers and over $250,000 for single taxpayers.

Sales Tax: 5.6% state levy. Localities can add as much as 5.6% to that, but the average collective levy is 8.4%, according to the Tax Foundation.

Material goods Taxes: Arizona’s median material goods tax rate is $617 per $100,000 of assessed home value.

For more in rank, go to the Arizona State Tax Guide for Middle-Class Families.

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Arkansas

State Taxes on Unemployment Refund: Arkansas naturally taxes unemployment refund. But, unemployment compensation paid in 2020 and 2021 are exempt from tax.

State Income Tax Range: Low: 2% (on taxable income from $4,500 to $8,899 for taxpayers with net income less than $22,200), 0.75% (on first $4,499 of taxable income for taxpayers with net income from $22,200 to $79,300), or 2% (on on first $4,000 of taxable income for taxpayers with net income over $79,300). High: 3.4% (on taxable income from $13,400 to $22,199 for taxpayers with net income less than $22,200), 5.9% (on taxable income from $37,200 to $79,300 for taxpayers with net income from $22,200 to $79,300), or 6.6% (on taxable income over $79,300 for taxpayers with net income over $79,300). Admittance in 2021, the top rate for taxpayers with net income over $79,300 is 5.9% (on taxable income over $8,000). A “bracket adjustment” of between $40 and $440 is subtracted from the amount of tax due for taxpayers with net income from $79,301 to $84,600.

Sales Tax: 6.5% state levy. Localities can add as much as 5.125%, and the average collective rate is 9.51%, according to the Tax Foundation.

Material goods Taxes: The median material goods tax rate for Arkansas homeowners is $612 per $100,000 of assessed home value.

For more in rank, go to the Arkansas State Tax Guide for Middle-Class Families.

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California

State Taxes on Unemployment Refund: Californians do not have to pay state income taxes on unemployment refund.

State Income Tax Range: Low: 1% (on up to $17,864 of taxable income for married joint filers and up to $8,932 for those filing in isolation). High: 13.3% (on more than $1,198,024 for married joint filers and $1 million for those filing in isolation).

Sales Tax: 7.25% state levy. Localities can add as much as 2.5%, and the average collective rate is 8.68%, according to the Tax Foundation.

Material goods Taxes: In California, the median material goods tax rate is $729 per $100,000 of assessed home value.

For more in rank, go to the California State Tax Guide for Middle-Class Families.

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Colorado

State Taxes on Unemployment Refund: Colorado taxes all unemployment refund.

Income Tax Range: Colorado has a flat income tax rate of 4.55% (the praise of Proposition 116, which appeared on the November 2020 ballot, reduced the rate from 4.63% to 4.55%). The state also limits how much its revenue can grow from year-to-year by lowering the tax rate if revenue growth is too high. For example, in 2019, this resulted in a rate saving to 4.5%. Denver and a few other cities in Colorado also impose a monthly payroll tax.

Sales Tax: 2.9% state levy. Localities can add as much as 8.3%, and the average collective rate is 7.72%, according to the Tax Foundation.

Material goods Taxes: In Colorado, the median material goods tax rate is $494 per $100,000 of assessed home value.

For more in rank, go to the Colorado State Tax Guide for Middle-Class Families.

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Connecticut

State Taxes on Unemployment Refund: Connecticut taxes unemployment compensation to the same extent as it is taxed under federal law.

State Income Tax Range: Low: 3% (on up to $20,000 of taxable income for married joint filers and up to $10,000 for those filing in isolation). High: 6.99% (on the amount over $1 million for married joint filers and over $500,000 for those filing in isolation).

Sales Tax: The state taxes most items at 6.35%, and localities are not allowed to add to that.

Material goods Taxes: The median material goods tax rate for Connecticut residents is $2,139 per $100,000 of assessed home value.

For more in rank, go to the Connecticut State Tax Guide for Middle-Class Families.

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Delaware

State Taxes on Unemployment Refund: Unemployment compensation is usually taxed in Delaware. But, unemployment refund expected in 2020 are exempt from tax.

State Income Tax Range: Low: 2.2% (on taxable income from $2,001 to $5,000). High:High: 6.6% (on taxable income above $60,000). Wilmington also imposes a city tax on wages.

Sales Tax: Neither the state nor localities impose a sales tax.

Material goods Taxes: For Delaware homeowners, the median material goods tax rate is $562 per $100,000 of assessed home value.

For more in rank, go to the Delaware State Tax Guide for Middle-Class Families.

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Constituency of Columbia

State Taxes on Unemployment Refund: The Constituency of Columbia (Washington, D.C.) taxes unemployment refund.

State Income Tax Range: Low: 4% (on taxable income up to $10,000). High: 8.95% (on taxable income over $1,000,000).

Sales Tax: 6% city sales tax.

Material goods Taxes: In the Constituency of Columbia, the median material goods tax rate is $564 per $100,000 of assessed home value.

For more in rank, go to the Constituency of Columbia Tax Guide for Middle-Class Families.

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Florida

State Taxes on Unemployment Refund: There are no taxes on unemployment refund in Florida.

State Income Tax Range: There is no state income tax.

Sales Tax: 6% state levy. Localities can add as much as 2.5%, and the average collective rate is 7.08%, according to the Tax Foundation.

Material goods Taxes: In Florida, the median material goods tax rate is $830 for every $100,000 of assessed home value.

For more in rank, go to the Florida State Tax Guide for Middle-Class Families.

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Georgia

State Taxes on Unemployment Refund: Georgia taxes unemployment refund.

State Income Tax Range: Low: 1% (on the first $1,000 of taxable net income for married couples filing jointly; on the first $750 for party filers; and on the first $500 for married couples filing unconnectedly). High: 5.75% (on the first $1,000 of taxable net income for married couples filing jointly; on the first $750 for party filers; and on the first $500 for married couples filing unconnectedly).

Sales Tax: 4% state levy. Localities can add as much as 4.9%, and the average collective rate is 7.32%, according to the Tax Foundation.

Material goods Taxes: Georgia’s median material goods tax rate is $875 per $100,000 of assessed home value.

For more in rank, go to the Georgia State Tax Guide for Middle-Class Families.

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Hawaii

State Taxes on Unemployment Refund: Unemployment compensation is fully taxed in Hawaii.

State Income Tax Range: Low: 1.4% (on taxable income up to $4,800 for married couples filing jointly; on up to $2,400 for married couples filing unconnectedly and party filers). High: 11% (on taxable income over $400,000 for married couples filing jointly and extant spouses; on over $200,000 for married couples filing unconnectedly and party filers).

Sales Tax: 4% state levy. Localities can add as much as 0.5%, but the average collective rate is only 4.44%, according to the Tax Foundation.

Material goods Taxes: The median material goods tax rate in Hawaii is $280 per $100,000 of assessed home value.

For more in rank, go to the Hawaii State Tax Guide for Middle-Class Families.

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Idaho

State Taxes on Unemployment Refund: Idaho taxes unemployment refund to the same extent as they are taxed at the federal level.

State Income Tax Range: Low: 1.125% (on taxable income up to $3,136 for married joint filers and up to $1,568 for party filers). High: 6.925% (on taxable income of $23,520 or more for married joint filers and $11,760 or more for party filers).

Sales Tax: 6% state levy. Localities (typically resort communities) can add as much as 3%, but the average collective rate is just 6.03%, according to the Tax Foundation.

Material goods Taxes: In Idaho, the median material goods tax rate is $633 per $100,000 of assessed home value.

For more in rank, go to the Idaho State Tax Guide for Middle-Class Families.

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Illinois

State Taxes on Unemployment Refund: Illinois fully taxes unemployment compensation.

State Income Tax Range: There is a flat rate of 4.95% of federal adjusted yucky income after modifications and private exemptions.

Sales Tax: 6.25% state levy. Localities can add as much as 4.75%, and the average collective rate is 8.82%, according to the Tax Foundation.

Material goods Taxes: In Illinois, the median material goods tax rate is $2,165 per $100,000 of assessed home value.

For more in rank, go to the Illinois State Tax Guide for Middle-Class Families.

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Indiana

State Taxes on Unemployment Refund: Even if unemployment refund are taxable in Indiana, part of your refund may be deductible. The deductible amount depends on your federal adjusted yucky income, how much unemployment compensation you receive, and your filing status. Perfect the “Unemployment Compensation Database” in the Form IT-40 lessons booklet to assess the exact amount of your deduction.

State Income Tax Range: The Hoosier State has a flat rate of 3.23% of state adjusted yucky income after modifications. Counties also levy income taxes.

Sales Tax: 7% state levy. No local taxes.

Material goods Taxes: The median material goods tax rate for Indiana homeowners is $810 per $100,000 of assessed home value.

For more in rank, go to the Indiana State Tax Guide for Middle-Class Families.

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Iowa

State Taxes on Unemployment Refund: Unemployment refund are fully taxable in Iowa.

State Income Tax Range: Low: 0.33% (on up to $1,666 of taxable income). High: 8.53% (on taxable income over $74,970). Iowa also has local income surtaxes used for schools and urgent circumstances air force.

Sales Tax: 6% state levy. Localities can add as much as 1%, and the average collective rate is 6.94%, according to the Tax Foundation.

Material goods Taxes: Iowa’s median material goods tax rate is $1,529 per $100,000 of assessed home value.

For more in rank, go to the Iowa State Tax Guide for Middle-Class Families.

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Kansas

State Taxes on Unemployment Refund: Kansas taxes unemployment refund.

State Income Tax Range: Low: 3.1% (on taxable income from $2,501 to $15,000 for single filers and from $5,001 to $30,000 for joint filers). High: 5.7% (on more than $30,000 of taxable income for single filers and more than $60,000 for joint filers). Kansas also has an “intangibles tax” levied on unnecessary income by some localities.

Sales Tax: 6.5% state levy. Localities can add as much as 4%, and the average collective rate is 8.69%, according to the Tax Foundation.

Material goods Taxes: In Kansas, the median material goods tax rate for homeowners is $1,369 for every $100,000 of assessed home value.

For more in rank, go to the Kansas State Tax Guide for Middle-Class Families.

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Kentucky

State Taxes on Unemployment Refund: Unemployment compensation is fully taxable in Kentucky.

State Income Tax Range: Kentucky has a flat income tax rate of 5%. Certain counties, cities and other local regime entities (such as school boards) can levy an bonus job-related license payroll tax on wages earned by employees working within their boundaries.

Sales Tax: State levy of 6%. There are no local sales taxes in Kentucky.

Material goods Taxes: The median material goods tax rate in Kentucky is $829 per $100,000 of assessed home value.

For more in rank, go to the Kentucky State Tax Guide for Middle-Class Families.

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Louisiana

State Taxes on Unemployment Refund: Louisiana taxes unemployment refund to the same extent as they are taxed under federal law.

State Income Tax Range: Low: 2% (on $12,500 or less of taxable income for those, $25,000 for joint filers). High: 6% (on more than $50,000 of taxable income; $100,000 for joint filers)

Sales Tax: 4.45% state levy. Localities can add as much as 7%, and the average collective rate is 9.52%, according to the Tax Foundation.

Material goods Taxes: Louisiana’s median material goods tax rate is $534 per $100,000 of assessed home value.

For more in rank, go to the Louisiana State Tax Guide for Middle-Class Families.

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Maine

State Taxes on Unemployment Refund: Unemployment refund are fully taxable in Maine.

State Income Tax Range: Low: 5.8% (on taxable income less than $22,200 for single filers; less than $44,450 for joint filers). High: 7.15% (on taxable income of $52,600 or more for single filers; $105,200 for joint filers). For 2021, the 5.8% rate applies to taxable income less than $22,450 for single filers and less than $44,950 for joint filers. The 7.15% rate applies to taxable income over $53,150 for single filers and over $106,350 for joint filers.

Sales Tax: 5.5% state levy. No local taxes.

Material goods Taxes: In Maine, the median material goods tax rate is $1,295 for every $100,000 of assessed home value.

For more in rank, go to the Maine State Tax Guide for Middle-Class Families.

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Maryland

State Taxes on Unemployment Refund: Maryland usually taxes unemployment refund. But, unemployment compensation expected in 2020 or 2021 is not taxed by the state for people with a federal adjusted yucky income of $75,000 or less ($100,000 or less for married couples filing a joint return and head-of-household filers).

State Income Tax Range: Low: 2% (on less than $1,000 of taxable income). High: 5.75% (on more than $250,000 of taxable income for single filers; more than $300,000 for joint filers). Maryland counties and Baltimore City levy bonus income taxes.

Sales Tax: State levy of 6%. There are no local sales taxes in Maryland.

Material goods Taxes: In Maryland, the median material goods tax rate for homeowners is $1,057 per $100,000 of assessed home value.

For more in rank, go to the Maryland State Tax Guide for Middle-Class Families.

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Massachusetts

State Taxes on Unemployment Refund: Massachusetts taxes unemployment refund.

State Income Tax Range: Massachusetts has a flat rate of 5% for most classes of taxable income.

Sales Tax: State levy of 6.25%. There are no local sales taxes in Massachusetts.

Material goods Taxes: The Massachusetts median material goods tax rate is $1,170 for every $100,000 of assessed home value.

For more in rank, go to the Massachusetts State Tax Guide for Middle-Class Families.

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Michigan

State Taxes on Unemployment Refund: Unemployment compensation is subject to tax in Michigan. (Note: Appeal and penalties for failure to pay estimated tax on unemployment refund expected in 2020 are waived.)

State Income Tax Range: Michigan has a flat tax rate of 4.25%. Cities can levy income taxes as well, on both residents and non-residents (who are taxed 1/2 the rate of residents).

Sales Tax: State levy of 6%. There are no local sales taxes in Michigan.

Material goods Taxes: In Michigan, the median material goods tax rate is $1,448 per $100,000 of assessed home value.

For more in rank, go to the Michigan State Tax Guide for Middle-Class Families.

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Minnesota

State Taxes on Unemployment Refund: Minnesota taxes unemployment refund.

State Income Tax Range: Low: 5.35% (on less than $26,960 of taxable income for single filers and on less than $39,410 for joint filers). High: 9.85% (on more than $164,400 of taxable income for single filers and on more than $273,470 for joint filers). For 2021, the 5.35% rate applies to taxable income less than $27,230 for single filers and less than $39,810 for joint filers. The 9.85% rate applies to taxable income over $166,040 for single filers and over $276,200 for joint filers.

Sales Tax: 6.875% state levy. Localities can add as much as 2%, with an average collective rate of 7.46%, according to the Tax Foundation.

Material goods Taxes: The Minnesota median material goods tax rate is $1,082 per $100,000 of assessed home value.

For more in rank, go to the Minnesota State Tax Guide for Middle-Class Families.

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Mississippi

State Taxes on Unemployment Refund: Mississippi residents are fully taxed on their unemployment compensation.

State Income Tax Range: Low: 3% (on taxable income from $3,001 to $5,000). High: 5% (on taxable income over $10,000).

Sales Tax: 7% state levy. Only two localities, Jackson (1%) and Tupelo (0.25%) add to that. According to the Tax Foundation, that makes for an average collective rate of 7.07%.

Material goods Taxes: The median material goods tax rate for Mississippi homeowners is $787 per $100,000 of assessed home value.

For more in rank, go to the Mississippi State Tax Guide for Middle-Class Families.

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Missouri

State Taxes on Unemployment Refund: Unemployment compensation is fully taxed in Missouri.

State Income Tax Range: Low: 1.5% (on taxable income of $107 or more). High: 5.4% (on more than $8,584 of taxable income). Kansas City and St. Louis also impose an return tax.

Sales Tax: 4.225% state levy. Localities can add as much as 5.763%, and the average collective rate is 8.25%, according to the Tax Foundation.

Material goods Taxes: For Missouri residents, the median material goods tax rate is $930 per $100,000 of assessed home value.

For more in rank, go to the Missouri State Tax Guide for Middle-Class Families.

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Montana

State Taxes on Unemployment Refund: Montana does not tax unemployment refund.

State Income Tax Range: Low: 1% (on up to $3,100 of taxable income). High: 6.9% (on taxable income over $18,700).

Sales Tax: No state sales tax. Resort areas such as Huge Sky, Red Lodge and West Yellowstone have local sales taxes.

Material goods Taxes: For homeowners in Montana, the median material goods tax rate is $831 for every $100,000 of assessed home value.

For more in rank, go to the Montana State Tax Guide for Middle-Class Families.

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Nebraska

State Taxes on Unemployment Refund: Unemployment refund are taxed in Nebraska.

State Income Tax Range: Low: 2.46% (on up to $3,290 of taxable income for single filers and $6,570 for married couples filing jointly). High: 6.84% (on taxable income over $31,750 for single filers and $63,500 for married couples filing jointly).

Sales Tax: 5.5% state levy. Localities can add as much as 2.5%, and the average collective rate is 6.94%, according to the Tax Foundation.

Material goods Taxes: In Nebraska, the median material goods tax rate for homeowners is $1,614 per $100,000 of assessed home value.

For more in rank, go to the Nebraska State Tax Guide for Middle-Class Families.

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Nevada

State Taxes on Unemployment Refund: There are no taxes on unemployment refund in Nevada.

State Income Tax Range: There is no state income tax.

Sales Tax: 6.85% state levy. Localities can add as much as 1.53%, and the average collective rate is 8.23%, according to the Tax Foundation.

Material goods Taxes: Nevada’s median material goods tax rate is $533 per $100,000 of assessed home value.

For more in rank, go to the Nevada State Tax Guide for Middle-Class Families.

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New Hampshire

State Taxes on Unemployment Refund: There are no taxes in New Hampshire on unemployment refund.

State Income Tax Range: New Hampshire doesn’t have an income tax. But there’s a 5% tax on dividends and appeal in excess of $2,400 for those ($4,800 for joint filers).

Sales Tax: No sales tax.

Material goods Taxes: The median material goods tax rate in New Hampshire is $2,050 for every $100,000 of assessed home value.

For more in rank, go to the New Hampshire State Tax Guide for Middle-Class Families.

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New Jersey

State Taxes on Unemployment Refund: New Jersey does not tax unemployment compensation.

State Income Tax Range: Low: 1.4% (on up to $20,000 of taxable income). High: 10.75% (on taxable income over $1 million). Newark also imposes a payroll tax.

Sales Tax: 6.625% state levy. That rate is cut in half (3.3125%) for in-person sales in designated Urban endeavor Zones located in in need areas. Salem County, which borders no-tax Delaware, also charges the reduced 3.3125% rate.

Material goods Taxes: In New Jersey, the median material goods tax rate is $2,417 per $100,000 of assessed home value.

For more in rank, go to the New Jersey State Tax Guide for Middle-Class Families.

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New Mexico

State Taxes on Unemployment Refund: Unemployment refund are taxed in New Mexico.

State Income Tax Range: Low: 1.7% (on up to $5,500 of taxable income for single filers and $8,000 for joint filers). High: 4.9% (on taxable income over $16,000 for single filers and over $24,000 for married couples filing jointly). Admittance with the 2021 tax year, the top rate will be 5.9% on taxable income over $210,000 for single filers and over $315,000 for joint filers.

Sales Tax: 5.125% state levy. Localities can add as much as 4.313%, and the average collective rate is 7.83%, according to the Tax Foundation. New Mexico’s tax is a yucky total admission money tax that covers most air force.

Material goods Taxes: In New Mexico, the median material goods tax rate is $776 for every $100,000 of assessed home value.

For more in rank, go to the New Mexico State Tax Guide for Middle-Class Families.

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New York

State Taxes on Unemployment Refund: New York taxes unemployment compensation to the same extent it is taxed under federal law.

State Income Tax Range: Low: 4% (on up to $8,500 of taxable income for single filers and up to $17,150 for married couples filing jointly). High: 8.82% (on taxable income over $1,070,550 for single filers and over $2,155,350 for married couples filing jointly). New York City and Yonkers impose their own income tax. A tourist tax is also imposed on residents of New York City, as well as on residents of Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester Counties.

Sales Tax: 4% state levy. Localities can add as much as 4.875%, and the average collective rate is 8.52%, according to the Tax Foundation. In the New York City metro area, there is an bonus 0.375% sales tax to support transit.

Material goods Taxes: New York’s median material goods tax rate is $1,692 per $100,000 of assessed home value.

For more in rank, go to the New York State Tax Guide for Middle-Class Families.

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North Carolina

State Taxes on Unemployment Refund: Unemployment refund are taxed in North Carolina.

State Income Tax Range: North Carolina has a flat tax rate of 5.25%.

Sales Tax: 4.75% state levy. Localities can add as much as 2.75%, and the average collective rate is 6.98%, according to the Tax Foundation.

Material goods Taxes: The median material goods tax rate in North Carolina is $773 per $100,000 of assessed home value.

For more in rank, go to the North Carolina State Tax Guide for Middle-Class Families.

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North Dakota

State Taxes on Unemployment Refund: North Dakota taxes unemployment refund.

State Income Tax Range: Low: 1.1% (on up to $40,125 of taxable income for singles and up to $67,050 for married couples filing jointly). High: 2.9% (on taxable income over $440,600).

Sales Tax: 5% state levy. Localities can add as much as 3.5%, and the average collective rate is 6.96%, according to the Tax Foundation.

Material goods Taxes: North Dakota’s median material goods tax rate is $986 per $100,000 of assessed home value.

For more in rank, go to the North Dakota State Tax Guide for Middle-Class Families.

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Ohio

State Taxes on Unemployment Refund: Ohio taxes unemployment compensation.

State Income Tax Range: Low: 2.85% (on taxable income from $22,150 to $44,250). High: High: 4.797% (on taxable income over $221,300). Cities and school districts in Ohio can also impose local income taxes.

Sales Tax: 5.75% state levy. Localities can add as much as 2.25%, and the average collective rate is 7.23%, according to the Tax Foundation.

Material goods Taxes: The Ohio median material goods tax rate is $1,478 per $100,000 of assessed home value.

For more in rank, go to the Ohio State Tax Guide for Middle-Class Families.

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Oklahoma

State Taxes on Unemployment Refund: Oklahoma taxes unemployment refund to the same extent they are taxed on your federal return.

State Income Tax Range: Low: 0.5% (on up to $1,000 of taxable income for single filers and up to $2,000 for married joint filers). High: 5% (on taxable income over $7,200 for single filers and over $12,200 for married joint filers).

Sales Tax: 4.5% state levy. Localities can add as much as 7%, and the average collective rate is 8.95%, according to the Tax Foundation.

Material goods Taxes: In Oklahoma, the median material goods tax rate is $869 per $100,000 of assessed home value.

For more in rank, go to the Oklahoma State Tax Guide for Middle-Class Families.

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Oregon

State Taxes on Unemployment Refund: Oregon commonly taxes unemployment refund expected during the year. But, the state does not tax unemployment refund expected as a result of work performed in any federally recognizable Indian reservation in Oregon or other land in the state that has been set aside as the home of tribal Indians under federal safeguard. (Once the IRS determines the best way to handle the $10,200 resistance for unemployment refund expected in 2020, the Oregon Sphere of Revenue will offer more in rank to Oregon taxpayers about how to handle the resistance for state tax purposes.)

State Income Tax Range: Low: 4.75% (on up to $3,600 of taxable income for single filers and up to $7,200 for married couples filing jointly). High: 9.9% (on taxable income over $125,000 for single filers and over $250,000 for married couples filing jointly). A “kicker” tax credit may be void on Oregon tax returns for odd-numbered years. The credit is formal if actual state revenues exceed forecasted revenues by 2% or more over the two-year budget cycle. Counties and special districts can also impose local income taxes.

Sales Tax: No state or local sales tax.

Material goods Taxes: The median material goods tax rate for Oregon homeowners is $903 per $100,000 of assessed home value.

For more in rank, go to the Oregon State Tax Guide for Middle-Class Families.

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Pennsylvania

State Taxes on Unemployment Refund: Unemployment compensation is not taxable for Pennsylvania income tax purposes.

State Income Tax Range: Pennsylvania has a flat rate of 3.07%. Municipalities and school districts can also impose taxes on wages or income.

Sales Tax: 6% state levy. Philadelphia has a local sales tax of an bonus 2%, and Allegheny County (Pittsburgh’s home county) adds a local sales tax of 1%. The collective average state and local rate is 6.34%, according to the Tax Foundation.

Material goods Taxes: In Pennsylvania, the median material goods tax rate is $1,499 for every $100,000 of assessed home value.

For more in rank, go to the Pennsylvania State Tax Guide for Middle-Class Families.

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Rhode Island

State Taxes on Unemployment Refund: Rhode Island taxes unemployment taxes.

State Income Tax Range: Low: 3.75% (on up to $65,250 of taxable income). High: 5.99% (on taxable income over $148,350).

Sales Tax: 7% state levy. No general local sales taxes.

Material goods Taxes: For homeowners in Rhode Island, the median material goods tax rate is $1,533 per $100,000 of assessed home value.

For more in rank, go to the Rhode Island State Tax Guide for Middle-Class Families.

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South Carolina

State Taxes on Unemployment Refund: Unemployment compensation is fully taxable in South Carolina.

State Income Tax Range: Low: 3% (on taxable income from $3,070 to $6,150). High: 7% (on taxable income over $15,400).

Sales Tax: 6% state levy. Localities can add as much as 3%, and the average collective rate is 7.46%, according to the Tax Foundation.

Material goods Taxes: South Carolina’s median material goods tax rate is $545 per $100,000 of assessed home value.

For more in rank, go to the South Carolina State Tax Guide for Middle-Class Families.

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South Dakota

State Taxes on Unemployment Refund: South Dakota does not tax unemployment refund.

State Income Tax Range: There’s no state income tax.

Sales Tax: 4.5% state levy. Localities can add as much as 4.5%, and the average collective rate is 6.4%, according to the Tax Foundation.

Material goods Taxes: The median material goods tax rate in South Dakota is $1,219 per $100,000 of assessed home value.

For more in rank, go to the South Dakota State Tax Guide for Middle-Class Families.

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Tennessee

State Taxes on Unemployment Refund: There is no tax on unemployment refund in Tennessee.

State Income Tax Range: Tennessee has no state income tax. (In 2020, dividends and some appeal were subject to the Hall Tax at a 1% rate.)

Sales Tax: 7% state levy. There’s also an bonus state tax of 2.75% on sales of single items that applies to the part of the sales price from $1,600 to $3,200. Localities can add up to 2.75%, with an average collective state and local rate of 9.55%, according to the Tax Foundation. Local taxes are limited, though: Only the first $1,600 of any single item is taxable.

Material goods Taxes: The median material goods tax rate for Tennessee homeowners is $636 per $100,000 of assessed home value.

For more in rank, go to the Tennessee State Tax Guide for Middle-Class Families.

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Texas

State Taxes on Unemployment Refund: Texas does not tax unemployment refund.

State Income Tax Range: Texas has no state income tax.

Sales Tax: 6.25% state levy. Localities can add up to 2%, with an average collective rate of 8.19%, according to the Tax Foundation.

Material goods Taxes: The median material goods tax rate in Texas is $1,692 per $100,000 of assessed home value.

For more in rank, go to the Texas State Tax Guide for Middle-Class Families.

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Utah

State Taxes on Unemployment Refund: Utah taxes unemployment refund.

State Income Tax Range: Utah has a flat tax of 4.95%.

Sales Tax: State levy is 4.85%, but mandatory 1% local sales tax and 0.25% county option sales tax are added to the state tax (for a 6.1% total rate). Plus, localities can add up to an bonus 2.95%, making the average collective state and local rate 7.19%, according to the Tax Foundation.

Material goods Taxes: In Utah, the median material goods tax rate is $575 per $100,000 of assessed home value.

For more in rank, go to the Utah State Tax Guide for Middle-Class Families.

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Vermont

State Taxes on Unemployment Refund: Unemployment compensation is taxed in Vermont.

State Income Tax Range: Low: 3.35% (on up to $40,350 of taxable income for singles and up to $67,450 for joint filers). High: 8.75% (on taxable income over for $204,000 for singles and up to $248,350 for joint filers).

Sales Tax: 6% state levy. Municipalities can add 1% to that, but the average collective state and local rate is 6.24%, according to the Tax Foundation.

Material goods Taxes: Vermont’s median material goods tax rate is $1,861 per $100,000 of assessed home value.

For more in rank, go to the Vermont State Tax Guide for Middle-Class Families.

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Virginia

State Taxes on Unemployment Refund: There are no taxes on unemployment refund in Virginia.

State Income Tax Range: Low: 2% (on up to $3,000 of taxable income). High: 5.75% (on taxable income over $17,000).

Sales Tax: 5.3% state levy, counting 1% that is allocated to local governments. Northern Virginia, Central Virginia, and the Hampton Roads area have an bonus 0.7% sales tax to pay for moving improvements. An bonus 1% tax is levied in Halifax and Henry Counties (commanding April 1, 2021), and an extra 1.7% tax is levied in the “Historic Triangle” area. These bonus taxes give the state an average collective state and local rate of 5.73%, according to the Tax Foundation.

Material goods Taxes: In Virginia, the median material goods tax rate is $804 per $100,000 of assessed home value.

For more in rank, go to the Virginia State Tax Guide for Middle-Class Families.

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Washington

State Taxes on Unemployment Refund: Washington does not tax unemployment refund.

State Income Tax Range: Washington has no state income tax.

Sales Tax: 6.5% state levy. Municipalities can add up to 4% to that, with the average collective rate at 9.23%, according to the Tax Foundation.

Material goods Taxes: The Washington median material goods tax rate is $929 for every $100,000 of assessed home value.

For more in rank, go to the Washington State Tax Guide for Middle-Class Families.

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West Virginia

State Taxes on Unemployment Refund: Unemployment compensation is subject to tax in West Virginia.

State Income Tax Range: Low: 3% (on up to $10,000 of taxable income). High: 6.5% (on taxable income of $60,000 or more). West Virginia municipalities can also impose city service fees on people working in the city.

Sales Tax: 6% state levy. Municipalities can add up to 1% to that, with an average collective rate of 6.5%, according to the Tax Foundation.

Material goods Taxes: In West Virginia, the median material goods tax rate for homeowners is $571 for every $100,000 of assessed home value.

For more in rank, go to the West Virginia State Tax Guide for Middle-Class Families.

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Wisconsin

State Taxes on Unemployment Refund: Wisconsin commonly taxes unemployment refund. But, a part of your refund may be exempt from tax. Perfect the “Unemployment Compensation Database” in the Schedule SB directions to see if you can exclude any part of your unemployment refund from Wisconsin income taxes.

State Income Tax Range: Low: 3.54% (on up to $11,450 of taxable income for singles or up to $15,960 for married couples). High: 7.65% (on taxable income over $263,480 for singles or over $351,310 for married couples).

Sales Tax: 5% state levy. Municipalities can add up to 1.75% to that, with the average collective rate at 5.43%, according to the Tax Foundation.

Material goods Taxes: Wisconsin’s median material goods tax rate is $1,684 per $100,000 of assessed home value.

For more in rank, go to the Wisconsin State Tax Guide for Middle-Class Families.

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Wyoming

State Taxes on Unemployment Refund: There are no taxes on unemployment refund in Wyoming.

State Income Tax Range: Wyoming has no state income tax.

Sales Tax: 4% state levy. Municipalities can add up to 2% to that, with a collective rate of 5.33%, according to the Tax Foundation.

Material goods Taxes: In Wyoming, the median material goods tax rate is $575 per $100,000 of assessed home value.

For more in rank, go to the Wyoming State Tax Guide for Middle-Class Families.

Millions of American families go from one state to another each year. And, as you can imagine, there are many reasons why you might pull up stakes and go to a uncommon state. You might go to start a new job, be closer to relatives, live in a warmer climate, or even – as a sign of the times – escape a coronavirus hotspot.

But no matter why you choose to pack your bags and go across state lines, do your investigate first and check out the cost of living in your destination state. You’ll want to look at the cost of housing, of course, but make sure you thought-out the impact of state and local taxes on your bottom line, too. As our State-by-State Guide to Taxes on Middle-Class Families shows, state tax rates for the average American family are factually all over the map — and the alteration between living in a high-tax or a low-tax state can be thousands of dollars each year, depending on your family’s tax circumstances.

To help you set up how huge of a tax bite each state would take out of your hard-earned cash, we estimated the overall income, sales, and material goods tax burden in each state for a hypothetical married couple with two family, collective wages of $77,000, and $3,000 of other income. Based on our findings, we place collectively the later list of the 10 most tax-forthcoming states for middle-class families (the most-forthcoming state is listed at the end). If you’re taking a job in another state, or relocating your family for other reasons, you’ll want to check it out to see if your state taxes are likely to go up or down after the go.

See the final slide for a perfect description of our ranking slant and sources of in rank.

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10. Delaware

• State Income Tax Range: 2.2% (on taxable income from $2,001 to $5,000) to 6.6% (on taxable income above $60,000)
• Average Collective State and Local Sales Tax Rate: No state or local sales tax
• Median Material goods Tax Rate: $562 per $100,000 of assessed home value

Delaware’s income tax is moderately high for our hypothetical middle-class family. The state’s top income tax rate of 6.6% hits anyone with more than $60,000 of taxable income, which is a to some extent high rate for people in that income range.

But, low sales and material goods taxes earn Delaware a spot on our list of the most tax-forthcoming states for middle-class families. Sales taxes can’t get any lower than they are in The First State – there’s no sales tax in Delaware! So, you can shop ’til you drop in Delaware without paying a single penny of sales tax on your buys.

When it comes to material goods taxes, Delaware has the seventh-lowest median material goods tax rate in the nation. As a result, the tax on a $300,000 home owned by our hypothetical family is estimated to be just $1,686 per year.

For more in rank on these and other Delaware state taxes, see the Delaware State Tax Guide for Middle-Class Families.

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9. Alaska

• State Income Tax Range: None
• Average Collective State and Local Sales Tax Rate: 1.76%
• Median Material goods Tax Rate: $1,182 per $100,000 of assessed home value

Your overall state tax burden is surely going to be low if there’s no state income tax. That’s why six of the 10 states on this list don’t impose an income tax – and Alaska is the first of those states.

But, there’s more to the Last Boundary’s low tax burden than just the lack of an income tax. Alaska is one of five states with no state sales tax. If you’re heading north to Alaska, just dredge up that local sales taxes – up to 7.5% – might apply. But, according to the Tax Foundation, the statewide local sales tax average is only 1.76%.

Material goods taxes are middle-of-the-road in Alaska. If our hypothetical couple were to hold a $300,000 home in the state, their estimated material goods tax bill would come to about $3,546 per year. That’s a small above the U.S. inhabitant average.

There’s one other thing about living in Alaska that’s worth noting: Alaska gives each legal inhabitant who has lived in the state for a full year an annual “Stable Fund Bonus.” The 2020 bonus was $992. (The highest payment ever was $2,072 in 2015.)

For more in rank on these and other Alaska state taxes, see the Alaska State Tax Guide for Middle-Class Families.

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8. North Dakota

• State Income Tax Range: 1.1% (on taxable income up to $40,125 for singles filers; up to $67,050 for joint filers) to 2.9% (on taxable income over $440,600)
• Average Collective State and Local Sales Tax Rate: 6.96%
• Median Material goods Tax Rate: $986 per $100,000 of assessed home value

Even though North Dakota imposes an income tax, its income tax rates are moderately microscopic, mainly for mid-level earners. For our rankings, North Dakota’s income tax on our hypothetical family is the lowest of any state that imposes an income tax.

Sales taxes in the Peace Garden State are below average, too. The state rate is a modest 5%. Local governments can add as much as 3.5%. But, according to the Tax Foundation, the average collective state and local sales tax rate is 6.96%, which isn’t too terrible.

While not dirt cheap, material goods taxes in North Dakota are quite evenhanded. The tax on a $300,000 home is estimated to be $2,958 per year. That’s only vaguely above the inhabitant material goods tax average for a home costing that much.

For more in rank on these and other North Dakota state taxes, see the North Dakota State Tax Guide for Middle-Class Families.

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7. Arizona

• State Income Tax Range: 2.59% (on taxable income up to $27,272 for single filers; up to $54,544 for joint filers) to 4.5% (on taxable income over $163,632 for single filers; over $327,263 for joint filers)
• Average Collective State and Local Sales Tax Rate: 8.4%
• Median Material goods Tax Rate: $617 per $100,000 of assessed home value

Low income taxes are what place the Grand Canyon State on this list. Middle-income families like our hypothetical taxpayers don’t pay the state’s lowest rate (2.59%), but at 3.34% they don’t pay much more. They also avoid the 3.5% surtax on taxable income over $500,000 for joint filers and over $250,000 for single taxpayers that takes effect in 2021. (Note that the surtax can’t boost the overall top rate above 4.5%, which fruitfully nullifies the surtax for the 2021 tax year.)

Arizona residents benefit from low material goods taxes, too. The median material goods tax on a $300,000 home in the state is estimated to be only $1,851 per year, which is well below the U.S. average material goods tax for a home at that price point.

The state’s sales tax is higher than average, though. It starts with a 5.6% state sales taxes. But, all 15 counties levy bonus taxes, as do many municipalities. As a result, the average collective state and local sales tax rate is 8.4%, which is the 11th-highest in the U.S., according to the Tax Foundation.

For more in rank on these and other Arizona state taxes, see the Arizona State Tax Guide for Middle-Class Families.

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6. California

• State Income Tax Range: 1% (on taxable income up to $8,932 for single filers; up to $17,864 for joint filers) to 13.3% (on taxable income over $1 million for single filers; over $1,198,024 for joint filers)
• Average Collective State and Local Sales Tax Rate: 8.68%
• Median Material goods Tax Rate: $729 per $100,000 of assessed home value

Wait, what? California is a tax-forthcoming state? Yes…for middle-class families. If you’re a rich person, California taxes will cut deep into your return. But for other people, the Golden State’s tax hit isn’t really all that terrible.

Our hypothetical middle-class family’s income tax bill was the third-lowest among states that impose an income tax. All makes a huge deal about California’s 13.3% income tax rate, which is the highest top rate in the nation, but only a small percentage of Californians pay that rate. In fact, with 10 uncommon tax rates, California has a very progressive income tax system. Our middle-income family, for reason, only fell into the state’s 6% tax bracket. That’s not too terrible.

Even if material goods taxes are sky high in Silicon Valley and certain other parts of the states, material goods taxes are below average for the state overall. For a $300,000 home in California, the statewide estimated material goods tax is only $2,187, which is the 16th-lowest amount in the country.

Sales tax is one area where Californians might pay more than residents of other states. The California state sales tax rate is 7.25%, which is the highest state rate in the nation. But, local sales taxes – up to 2.5% – aren’t very high. The Tax Foundation calculates the average collective state and local rate to be 8.68%, which is honestly low.

For more in rank on these and other California state taxes, see the California State Tax Guide for Middle-Class Families.

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5. Washington

• State Income Tax Range: None
• Average Collective State and Local Sales Tax Rate: 9.23%
• Median Material goods Tax Rate: $929 per $100,000 of assessed home value

The only reason why Washington makes this list is because it doesn’t have an income tax. Without that tax break, the Evergreen State surely wouldn’t be thorough one of the most taxpayer-forthcoming states in the nation.

Sales taxes in Washington are pretty high. The state sales tax rate is 6.5%, which is well above average. Plus, at 9.23%, the Tax Foundation’s average collective state and local sales tax rate for Washington is the fourth-highest in the country.

Material goods taxes in Washington are more modest. For a $300,000 home, the average tax bill in the state will run you about $2,787 per year. That’s a middle-of-the-pack amount when compared to other states.

For more in rank on these and other Washington state taxes, see the Washington State Tax Guide for Middle-Class Families.

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4. Tennessee

• State Income Tax Range: 1% on appeal and dividends
• Average Collective State and Local Sales Tax Rate: 9.55%
• Median Material goods Tax Rate: $636 per $100,000 of assessed home value

There’s no broad-based income tax in the Volunteer State — only appeal and dividends are subject to Tennessee’s limited income tax. The first $1,250 in taxable income for those ($2,500 for joint filers) is also exempt from the 1% tax (for 2020), and it’s waived if you’re at least 100 years ancient. Plus, the tax is being phased out at a rate of 1% per year. So, 2020 is the last year the tax will be imposed.

Material goods taxes in Tennessee are evenhanded, too. Our hypothetical middle-class family can expect to pay only about $1,908 per year for a $300,000 home. That’s well below the inhabitant average.

Tennessee sticks it to you when you’re shopping, though. It starts with a 7% state rate (plus 2.75% on part of the price from $1,600 to $3,200 of single items), but then local governments can tack on up to 2.75% more in taxes on each sale. At 9.55%, Tennessee’s average collective state and local sales tax rate is the highest in the nation, according to the Tax Foundation. Ouch!

For more in rank on these and other Tennessee state taxes, see the Tennessee State Tax Guide for Middle-Class Families.

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3. Florida

• State Income Tax Range: None
• Average Collective State and Local Sales Tax Rate: 7.08%
• Median Material goods Tax Rate: $830 per $100,000 of assessed home value

Florida has no income tax. That keeps the overall state and local tax burden down for middle-class families and all else. But, other taxes in the Sunshine State are just average when compared to other locations.

For reason, material goods taxes are right around the inhabitant average. For a $300,000 home in Florida, our hypothetical middle-class family’s estimated annual material goods tax bill is $2,490. That’s pretty much in the middle when compared to other states.

The state’s average collective state and local sales tax rate is middle-of-the-road, too. It’s 7.08%, according to the Tax Foundation. That’s based on a 6% state tax rate and local rates that can be as high as 2.5%.

For more in rank on these and other Florida state taxes, see the Florida State Tax Guide for Middle-Class Families.

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2. Nevada

• State Income Tax Range: None
• Average Collective State and Local Sales Tax Rate: 8.23%
• Median Material goods Tax Rate: $533 per $100,000 of assessed home value

Middle-class families in Nevada like the fact that there’s no income tax in the state. But that’s not the only tax perk for residents of the Silver State.

Nevada also has the fourth-lowest average material goods tax rates in the country. So, if our hypothetical middle-class family owned a $300,000 home in the state, they would only pay an estimated $1,599 in material goods taxes each year.

Sales taxes in Nevada aren’t so low, though. There’s a moderately high 6.85% state sales tax rate. Then, when you add in local taxes, the average collective state and local sales tax rate shoots up to 8.23%, which is the 13th-highest in the country.

For more in rank on these and other Nevada state taxes, see the Nevada State Tax Guide for Middle-Class Families.

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1. Wyoming

• State Income Tax Range: None
• Average Collective State and Local Sales Tax Rate: 5.33%
• Median Material goods Tax Rate: $575 per $100,000 of assessed home value

Congratulations, Wyoming – you’re the most tax-forthcoming state for middle-class families! One reason why Wyoming earns this honor is because generous revenues from mineral and energy extraction take up again to flow into the state. That allows the Equality State to keep taxes on residents low across the board.

There’s no income tax in Wyoming. As with many of the other states on this list, that’s the driving force behind the state’s favorable ranking. But, what makes Wyoming unique is that it also has both low sales taxes and low material goods taxes.

The state sales tax rate in Wyoming is a modest 4%. Municipalities can tack on up to 2% more, which isn’t that much. As a result, the state’s collective state and average local sales tax rate is the eighth-lowest in the country, according to the Tax Foundation.

People who go to these parts like to own a lot of land, and low material goods taxes make that dream practically priced. The material goods tax on our hypothetical middle-class family’s $300,000 home in Wyoming would be about $1,725, which is tied the 10th-lowest material goods tax amount in our rankings.

For more in rank on these and other Wyoming state taxes, see the Wyoming State Tax Guide for Middle-Class Families.

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About Our Slant

Our tax maps and related tax content include data from a wide range of sources. To breed our rankings, we made a metric to compare the tax burden in all 50 states and the Constituency of Columbia.

Data sources

Income tax – Our income tax in rank comes from each state’s tax agency. Income tax forms and directions were also used. See more about how we calculated the income tax for our hypothetical family below under “Ranking method.”

Material goods tax – The median material goods tax rate is based on the median material goods taxes paid and the median home value in each state for 2019 (the most recent year void). The data comes from the U.S. Census Bureau.

Sales tax – State sales tax rates are from each state’s tax agency. We also cite the Tax Foundation’s figure for average collective sales tax, which is a populace-biased average of state and local sales taxes. In states that let local governments add sales taxes, this gives an assess of what most people in a given state in fact pay, as those rates can vary widely.

Ranking method

The “tax-cordiality” of a state depends on the sum of income, sales and material goods tax paid by our hypothetical family.

To set up income taxes due, we set returns for a married couple with two needy family, an earned income of $77,000, long-term capital gains of $1,500, certified dividends of $1,000, and taxable appeal of $500. They had $4,500 in state income taxes withdrawn from their wages. They also paid $3,000 in real estate taxes, paid $2,800 in finance appeal, and donated $2,300 (cash and material goods) to charity. Since some states have local income taxes, we domiciled our filers in each state’s capital, from Juneau to Cheyenne. We calculated these 2019 returns using software from Credit Karma.

How much they paid in sales taxes was calculated using the IRS’ Sales Tax Calculator, which is contained to zip code. To set up those, we used Zillow to set up zip codes with housing supply close to our sample assessed value.

How much the hypothetical family paid (and deducted on their income tax return) in material goods taxes was calculated by high and mighty a residence with $300,000 assessed value and then applying each state’s median material goods tax rate to that amount.

It’s terrible enough when Uncle Sam hits you with a huge tax bill. But you really go through the roof when your state, county, or city follows that up by taking another huge chunk of your hard-earned cash. That’s why people who are contemplating a go from one state to another need to do their investigate before hiring a moving company. If you can help it, you don’t want to end up in a state with higher taxes than the one you’re in right now.

Moving from a low-tax state to a high-tax state can factually cost you thousands of dollars each year. If you want to prevent this, you need to know which states to avoid. And we can help with that.

To build our State-by-State Guide to Taxes on Middle-Class Families, Kiplinger editors estimated the overall income, sales, and material goods tax burden in each state for a hypothetical married couple with two family, collective wages of $77,000, $3,000 of other income, and a $300,000 home. That also allowed us to make the later list of the 10 least tax-forthcoming states for middle-class families (the least-forthcoming state is listed last). If you and your family are thought of relocating to another state, make sure you check out the list first. It might make you reckon twice before packing your bags.

See the final slide for a perfect description of our ranking slant and sources of in rank.

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10. Michigan

• State Income Tax Range: 4.25% (flat rate)
• Average Collective State and Local Sales Tax Rate: 6%
• Median Material goods Tax Rate: $1,448 per $100,000 of assessed home value

Excellent news first: sales taxes are below average in the Fantastic Lakes State. There’s a 6% state tax on buys in Michigan, which is right around the mid-point as far as state-level sales tax rates go. But local governments don’t add any bonus tax on sales in the state. So, shoppers in Michigan can feel pretty excellent about the overall state and local sales tax burden on them.

But things go downhill from there. The 4.25% flat rate is higher than what you’ll find on middle-class families in most other states. Plus, cities can levy bonus local income taxes. As a result, Michigan’s income tax bill for our hypothetical family is above the inhabitant average. Not by much, but the extra tax burden is enough to nudge the state in the incorrect management.

And there’s more terrible news when we look at material goods taxes in Michigan. For a home worth $300,000, the estimated annual material goods tax in Michigan is $4,344. That material goods tax amount is well over the inhabitant average and pushes Michigan onto this list of the least tax-forthcoming states for middle-class families.

For more in rank on these and other Michigan state taxes, see the Michigan State Tax Guide for Middle-Class Families.

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9. Nebraska

• State Income Tax Range: 2.46% (on taxable income up to $3,290 for single filers; up to $6,570 for joint filers) to 6.84% (on taxable income over $31,750 for single filers; over $63,500 for joint filers)
• Average Collective State and Local Sales Tax Rate: 6.94%
• Median Material goods Tax Rate: $1,614 per $100,000 of assessed home value

While the cost of housing is to some extent low in the Cornhusker State, the average material goods tax rate in the state is quite high. For a $300,000 home, the state-wide average tax in Nebraska comes to $4,842 per year. That’s the ninth-highest material goods tax amount in our U.S. rankings, and it’s the primary reason why Nebraska is on the least tax-forthcoming list.

Sales taxes in Nebraska are middle-of-the-road. There’s a 5.5% state tax, and localities can add as much as 2.5%. That works out to an average collective state and local rate of 6.94%, according to the Tax Foundation.

Finally, on the bright side, income taxes are below average in Nebraska for our hypothetical middle-class family. But, they’re not low enough to balance out the state’s high material goods taxes.

For more in rank on these and other Nebraska state taxes, see the Nebraska State Tax Guide for Middle-Class Families.

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8. Maryland

• State Income Tax Range: 2% (on taxable income up to $1,000) to 5.75% (on taxable income over $250,000 for single filers; over $300,000 for joint filers)
• Average Collective State and Local Sales Tax Rate: 6%
• Median Material goods Tax Rate: $1,057 per $100,000 of assessed home value

Middle-class families in the Ancient Line State get killed when it comes to state and local income taxes. (Baltimore City and every county in Maryland imposes a local income tax.) For our hypothetical family, Maryland’s income tax bill is the second-highest is the country.

The news is better when it comes to material goods taxes. If our made-up family went into a $300,000 home in Maryland, they’d pay an estimated $3,171 in tax each year if the state’s median material goods tax rate were applied. That material goods tax amount is right around the inhabitant average that we’re seeing in our survey.

The Maryland tax system is in fact quite forthcoming to shoppers, though. Like Michigan, there’s a 6% state sales tax, but that’s it – there are no bonus local sales taxes to pay. That means the overall state and local sales tax burden on Marylanders is below average.

For more in rank on these and other Maryland state taxes, see the Maryland State Tax Guide for Middle-Class Families.

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7. Kansas

• State Income Tax Range: 3.1% (on taxable income from $2,501 to $15,000 for single filers; from $5,001 to $30,000 for joint filers) to 5.7% (on taxable income over $30,000 for single filers; over $60,000 for joint filers).
• Average Collective State and Local Sales Tax Rate: 8.7%
• Median Material goods Tax Rate: $1,369 per $100,000 of assessed home value

Most people don’t reckon of the farm belt as a high-tax area, but here’s another state from that region on our least tax-forthcoming list (Nebraska was the first). With Kansas, its sales tax is the main culprit behind its poor (from a taxpayer standpoint) showing. According to the Tax Foundation, the collective average state and local sales tax rate is 8.7% (the state rate is 6.5%). That’s the ninth-highest collective sales tax rate in the country.

The news gets a small better when it comes to other taxes in the Sunflower State. For reason, income taxes are only vaguely above average for middle-class families. But, hundreds of local governments in Kansas also impose a tax on appeal, dividends, and other return from indefinable material goods. The local rates range from 0.125% to 2.25%. Even though the local taxes aren’t on all income, they surely push up the overall tax burden for many families in the state.

Material goods taxes in Kansas are above average, too. If our hypothetical family went to Kansas and bought a $300,000 home in the state, they would pay about $4,107 in material goods taxes each year based on the state’s median tax rate. That’s the 15th-highest amount in the country for a home at that value.

For more in rank on these and other Kansas state taxes, see the Kansas State Tax Guide for Middle-Class Families.

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6. Wisconsin

• State Income Tax Range: 3.54% (on taxable income up to $12,120 for single filers; up to $16,160 for joint filers) to 7.65% (on taxable income over $266,930 for singles; over $355,910 for joint filers)
• Average Collective State and Local Sales Tax Rate: 5.43%
• Median Material goods Tax Rate: $1,684 per $100,000 of assessed home value

The Badger State owes its spot on our list of the least tax-forthcoming states for middle-class families to high material goods taxes. And we assess that material goods taxes for a $300,000 home in Wisconsin would run about $5,052 per year. That’s the eighth-highest material goods tax amount in our nation-wide rankings.

Income taxes are above average for middle-class families in Wisconsin, too. The state did reduce the 2020 income tax rates for people with lower incomes. But, the rate cut didn’t help our imaginary middle-class family, because their income place them in a higher Wisconsin tax bracket that wasn’t adjusted.

The excellent news is that sales taxes are in fact low in Wisconsin. There’s a 5% state sales tax, but local governments can add their own tax to it. But, overall, Wisconsin has the ninth-lowest collective average state and local tax rate in the nation, says the Tax Foundation.

For more in rank on these and other Wisconsin state taxes, see the Wisconsin State Tax Guide for Middle-Class Families.

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5. New York

• State Income Tax Range: 4% (on taxable income up to $8,500 for single filers; up to $17,150 for joint filers) to 10.9% (on taxable income over $25 million)
• Average Collective State and Local Sales Tax Rate: 8.52%
• Median Material goods Tax Rate: $1,692 per $100,000 of assessed home value

For our hypothetical middle-class family, New York’s income tax bill is only in the “average” range when compared to the taxes imposed by other states. But, New York City and Yonkers tack on their own income taxes, and there’s a tourist tax for people working in and around New York City. So, the overall state and local income tax bill is higher for people living in those parts of the state.

While income taxes in the Empire State aren’t too high for middle-class families, things start to get terrible when you look at sales taxes. The state sales tax rate is only 4%. But local taxes can add as much as 4.875% more. At 8.52%, New York’s average collective state and local sales tax rate is the 10th-highest in the country, according to the Tax Foundation.

And then things go from terrible to worse when material goods taxes are added to the mix. The average material goods tax on a $300,000 home in New York is about $5,076, which is tied for the seventh-highest material goods tax amount in the country for a home worth that much. But in some high-cost parts of the state, such as Westchester County, homeowners pay more than twice that amount, which means they’re pinched even more by the $10,000 cap on the federal deduction for state and local taxes.

For more in rank on these and other New York state taxes, see the New York State Tax Guide for Middle-Class Families.

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4. New Jersey

• State Income Tax Range: 1.4% (on taxable income up to $20,000) to 10.75% (on taxable income over $1 million)
• Average Collective State and Local Sales Tax Rate: 6.6%
• Median Material goods Tax Rate: $2,417 per $100,000 of assessed home value

For middle-class families in the Garden State, income taxes are moderately low when compared with other states. New Jersey checked with the fourth-lowest income tax total out of all the states with a broad-based income tax when we calculated income tax bills for our hypothetical family. (There’s also a payroll tax in Newark.)

Sales taxes are below average in New Jersey, too. The state sales tax rate is 6.625%. But because some areas charge only half the state rate on certain sales, the Tax Foundation says that New Jersey’s average state and local collective sales tax rate is only 6.6%.

But while New Jersey gives residents a break on income and sales taxes, it brings the hammer down when they buy a home. New Jersey’s material goods taxes are the highest in the U.S. The state-wide average material goods tax on a $300,000 home in New Jersey comes to a monstrous $7,251.

For more in rank on these and other New Jersey state taxes, see the New Jersey State Tax Guide for Middle-Class Families.

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3. Iowa

• State Income Tax Range: 0.33% (on taxable income up to $1,676) to 8.53% (on taxable income over $75,420)
• Average Collective State and Local Sales Tax Rate: 6.94%
• Median Material goods Tax Rate: $1,529 per $100,000 of assessed home value

Which do you reckon is higher in Iowa: the corn or taxes? It might be taxes, thanks to staggering income and material goods taxes in the state. Iowa’s income tax on our hypothetical middle-class family is the third-highest in the country. One reason why income taxes are on the high end in the state is because over 200 school districts and Appanoose County add their own income taxes on top of the state-level tax. (Admittance in 2023, the lowest Iowa private income tax rate will be 4.4%, while the highest rate will be 6.5%.)

Our survey also shows that the average material goods tax rate in the Hawkeye State is the 11th-highest in the nation. If our hypothetical family bought a $300,000 home in the state, they can expect to pay about $4,587 per year in material goods taxes. That surely doesn’t help middle-class families in Iowa.

While sales taxes in Iowa aren’t low, at least they’re not as high as the state’s income and material goods taxes. The state sales tax rate is 6%, and localities can add as much as 1%. That puts Iowa’s collective average state and local sales tax rate (6.94%, according to the Tax Foundation) in the middle-of-the-pack when compared to the rates in other states.

For more in rank on these and other Iowa state taxes, see the Iowa State Tax Guide for Middle-Class Families.

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2. Connecticut

• State Income Tax Range: 3% (on taxable income up to $10,000 for single filers; up to $20,000 for joint filers) to 6.99% (on taxable income over $500,000 for single filers; over $1 million for joint filers)
• Average Collective State and Local Sales Tax Rate: 6.35%
• Median Material goods Tax Rate: $2,139 per $100,000 of assessed home value

The Constitution State is an pricey place to live. Connecticut’s material goods taxes are the third-highest in the U.S., so the $10,000 cap on the federal tax deduction for state and local taxes stings a bit more here. The state-wide average material goods tax for a $300,000 home is $6,417 per year. But, residents in high-income areas such as Fairfield County typically pay more than $10,000 in material goods taxes each year, so their federal tax deductions for state and local taxes have been shortened.

State income taxes on are the high end, too. Connecticut income taxes for our make-believe middle-class are above average, but not sky high.

Sales taxes are also evenhanded in Connecticut. There are no local sales taxes in Connecticut, so you’ll pay only the statewide rate of 6.35% (vaguely below average) on most of your buys. But luxury items, such as cars valued at $50,000 or more or jewelry worth more than $5,000, are taxed at 7.75%.

For more in rank on these and other Connecticut state taxes, see the Connecticut State Tax Guide for Middle-Class Families.

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1. Illinois

• State Income Tax Range: 4.95% (flat rate)
• Average Collective State and Local Sales Tax Rate: 8.83%
• Median Material goods Tax Rate: $2,165 per $100,000 of assessed home value

Sorry, Illinois, but you’re the least tax-forthcoming state in the country for middle-class families. For all three taxes we’re tracking – income, sales, and material goods taxes – you tax middle-income residents at an above average rate (at least). And for one of those taxes, the rates are exceptionally high. That’s enough to place the Land of Lincoln in the most undesirable spot on our list.

At first blush, the state’s 4.95% flat income tax rate doesn’t seem that steep when compared to other states’ top tax rates. And that’s right if you’re talking about wealthy residents. But for middle-class taxpayers, the income tax rate is on the high end. Also note that Illinois voters second-hand a bid on the November 2020 ballot that would have dumped the flat tax in favor of a graduated income tax. If it had passed, the marginal tax rate for most middle-income residents would have dropped vaguely to 4.9%.

Sales taxes in Illinois are high, too. There’s a 6.25% state tax on buys in Illinois (1% on groceries and prescription drugs). Plus, up to 4.75% in local taxes are tacked on in certain places within the state. All told, the average collective state and local sales tax in Illinois is 8.83%, which is the seventh-highest collective sales tax rate in the U.S.

The tax circumstances really goes downhill quick for Illinois residents when you look at the material goods taxes they have to pay. Material goods taxes in Illinois are the second-highest in the nation. If our hypothetical family bought a $300,000 home in the state, their average annual material goods tax bill would be an eye-popping $6,495.

For more in rank on these and other Illinois state taxes, see the Illinois State Tax Guide for Middle-Class Families.

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About Our Slant

Our tax maps and related tax content include data from a wide range of sources. To breed our rankings, we made a metric to compare the tax burden in all 50 states and the Constituency of Columbia.

Data sources:

Income tax – Our income tax in rank comes from each state’s tax agency. Income tax forms and directions were also used. See more about how we calculated the income tax for our hypothetical family below under “Ranking method.”

Material goods tax – The median material goods tax rate is based on the median material goods taxes paid and the median home value in each state for 2019 (the most recent year void). The data comes from the U.S. Census Bureau.

Sales tax – State sales tax rates are from each state’s tax agency. We also cite the Tax Foundation’s figure for average collective sales tax, which is a populace-biased average of state and local sales taxes. In states that let local governments add sales taxes, this gives an assess of what most people in a given state in fact pay, as those rates can vary widely.

Ranking method

The “tax-cordiality” of a state depends on the sum of income, sales and material goods tax paid by our hypothetical family.

To set up income tax, we set returns for a married couple with two needy family, an earned income of $77,000, long-term capital gains of $1,500, certified dividends of $1,000, and taxable appeal of $500. They had $4,500 in state income taxes withdrawn from their wages. They also paid $3,000 in real estate taxes, paid $2,800 in finance appeal, and donated $2,300 (cash and material goods) to charity. Since some states have local income taxes, we domiciled our filers in each state’s capital, from Juneau to Cheyenne. We calculated these 2019 returns using software from Credit Karma.

How much they paid in sales taxes was calculated using the IRS’ Sales Tax Calculator, which is contained to zip code. To set up those, we used Zillow to set up zip codes with housing supply close to our sample assessed value.

How much the hypothetical family paid (and deducted on their income tax return) in material goods taxes was calculated by high and mighty a residence with $300,000 assessed value and then applying each state’s median material goods tax rate to that amount.

Even if many schools are schooling for in-person culture this school year, some students will still be culture in the least when school starts up again. But, whether your kids will be culture from home or in the classroom this fall, you’ll still have to do some back-to-school shopping to get ready for the new school year. And, as every parent knows, the bill for new clothes, shoes, backpacks, and other schools equipment can get very high, very quick.

Opportunely, some states cut you a break on back-to-school shopping by holding a sales tax holiday before the school year starts. If you hold qualifying items during one of these holidays, the store won’t tack on sales tax at the catalog. A few of these back-to-school sales tax holidays start in July (Alabama’s is first), but most of them are in August. In most cases, they start on a Friday and run through the weekend. But, the dates, duration, and qualifying items differ from state to state. So, if you live in (or near) a state with one of these “tax-free weekends,” make sure you make well-known physically with the timing and scope of the void sales tax resistance before you head out for your back-to-school shopping.

To help you prepare, we’ve listed the 17 states with a tax-free weekend for back-to-school shopping in 2021. We also provide an overview of the sales tax resistance and provide links to bonus in rank (unless if not noted, the exemptions cover both state and local sales taxes). The school year will be here before you know it…and we hope you can save a few bucks on taxes before it arrives during one of these tax-free weekends.

Sales tax rates and averaged collective state and local sales tax rates are from the Tax Foundation as of July 1, 2021.

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Alabama Tax-Free Weekend

Alabama’s 2021 sales tax holiday for back-to-school shopping runs from July 16 to July 18. The sales tax resistance commonly applies to clothing costing $100 or less, computers and related items priced up to $750, school equipment priced up to $50, and books costing $30 or less. For details on what is exempt and what is taxable, see the guidelines on the Alabama DOR’s website.

Counties and cities in the state must opt in for the sales tax holidays to apply within their borders. The Alabama DOR has a list of the participating local governments on its website.

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Arkansas Tax-Free Weekend

Get ready to save on back-to-school shopping in Arkansas on August 7 and 8 this year. During the state’s sales tax holiday, there’s no sales tax on general clothing costing less than $100, various frills priced below $50, electronic devices often used by students (new for 2021), school equipment (counting art equipment), and school instructional equipment. The resistance doesn’t cover sewing gear and equipment, defending gear, sport or recreational gear, belt buckles sold unconnectedly, and many other items. The Arkansas Sphere of Finance and Handing out has a fussy list of what’s exempt and what’s taxable during the tax-free weekend on its website.

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Connecticut Tax-Free Week

Connecticut’s sales tax holiday lasts a whole week. In 2021, it runs from August 15 to 21. The downside is that the sales tax resistance is more limited than in most other states – it only applies to items costing less than $100. In addendum, the sales tax holiday doesn’t provide an resistance for special clothing or footwear primarily calculated for commanding try or defending use, jewelry, handbags, luggage, umbrellas, wallets, watches, and similar frills. Safety apparel is tax-free under a break resistance. A more fussy list of what’s exempt and what isn’t can be found on the Connecticut Sphere of Revenue Navy website.

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Florida Tax-Free Week

Here’s some excellent news for Florida parents: The state’s back-to-school sales tax holiday was prolonged from three days to 10 days for 2021. So, this year, shopping in Florida will be a small cheaper all the way from July 31 to August 9, 2021. The state’s sales tax holiday applies to clothing, footwear, backpacks, and certain other frills costing $60 or less; school equipment costing $15 or less; and the first $1,000 of the price of private computers or private pad-related frills. “Clothing” includes wallets and handbags, but not watches or jewelry. The tax resistance also doesn’t apply to sales made in a theme park, entertainment complex, hotel, or airport. For more in rank, counting examples of qualifying items, see the Florida Sphere of Revenue’s website.

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Iowa Tax-Free Weekend

• State sales tax rate: 6%
• Average collective state and local sales tax rate: 6.94%
• Dates of sales tax holiday: August 6 to 7, 2021
• Go to Iowa’s Full State Profile

In Iowa, there’s no sales tax on clothing or footwear sold for less than $100 on August 6 and 7, 2021. The resistance applies to each article priced under $100 in any case of how many items are sold to a consumer. But, it doesn’t apply in any way to the price of an item selling for $100 or more. There’s also a long list of point items that don’t qualify for the resistance, such as watches, jewelry, umbrellas, generous gear, and special clothing or footwear calculated primarily for commanding try. A fussy list of what’s exempt and what’s taxable can be found on the Iowa Sphere of Revenue’s website.

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Maryland Tax-Free Week

Maryland has a week-long sales tax holiday for back-to-school shopping. This year it runs from August 8 to 14, 2021. During the holiday, there’s no sales tax on certain clothing and footwear priced at $100 or less. The first $40 spent on a backpack or bookbag is also tax-free. Belt items, except for backpacks, aren’t exempt. There’s a fussy list of taxable and exempt items on the Comptroller of Maryland’s website.

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Massachusetts Tax-Free Weekend

Massachusetts has a very broad sales tax holiday. On August 14 and 15, 2021, shoppers in the state can hold most retail items priced at $2,500 or less without having to pay sales tax. But, the resistance doesn’t apply to meals, motor vehicles, motorboats, telecommunications air force, natural gas, steam, electricity, tobacco harvest, marijuana or marijuana harvest, or alcoholic beverages. The resistance also doesn’t apply to buys by businesses or buys by those for affair use. (Only sales to those for private use are tax-free.)

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Mississippi Tax-Free Weekend

Mississippi’s back-to-school sales tax holiday is on July 30 and July 31 this year. The sales tax resistance applies to clothing, footwear, and school equipment with a sales price of $100 or less. But, frills such as jewelry, handbags, wallets, watches, and the like don’t qualify for the resistance. A list of tax exempt and taxable items can be found on the Mississippi Sphere of Revenue’s website.

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Missouri Tax-Free Weekend

Missouri’s tax-free weekend for certain back-to-school buys starts on August 6 and ends August 8, 2021. During the holiday, sales of school equipment costing $50 or less, clothing priced up to $100, graphing calculators valued at $150 or less, pad software costing $350 or less, and private computers and peripheral devices priced up to $1,500 are exempt from sales tax. Cities, counties, and special tax districts choose whether they will participate in the back-to-school sales tax holiday. Cities, counties, and special taxing districts can opt in or out of this holiday for their local sales tax (click the city, county and constituency links to see lists of local jurisdictions not participating in the sales tax holiday).

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New Mexico Tax-Free Weekend

New Mexico’s back-to-school sales tax holiday runs from August 6 to 8, 2021. During the holiday, there’s no yucky total admission money (sales) tax on clothing or footwear priced at less than $100; computers costing up to $1,000; related pad hardware priced at $500 or less; book bags, backpacks, maps and globes valued at under $100; handheld calculators for under $200; and basic school equipment priced under $30. But, the tax resistance doesn’t apply to watches, radios, CD players, headset, generous gear, cell phones, portable desktop telephones, copiers, office gear, furniture, or furniture. The New Mexico Taxation and Revenue Sphere has a fussy list of what is or isn’t covered on its website.

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Ohio Tax-Free Weekend

• State sales tax rate: 5.75%
• Average collective state and local sales tax rate: 7.22%
• Dates of sales tax holiday: August 6 to 8, 2021
• Go to Ohio’s Full State Profile

During Ohio’s sales tax holiday, there’s no sales tax on buys of clothing priced at $75 or less, school equipment priced at $20 or less, and school instructional equipment priced at $20 or less. Clothing frills, defending gear, sewing gear and equipment, sports or recreational gear, belt buckles, costume masks, patches and emblems, and items used in a trade or affair are not exempt. The Ohio Sphere of Taxation has more in rank about what is or isn’t exempt during the sales tax holiday on the FAQ section of its website. This year, Ohio’s back-to-school sales tax holiday is from August 6 to 8, 2021.

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Oklahoma Tax-Free Weekend

This year’s Oklahoma back-to-school sales tax holiday is from August 6 to 8, 2021. During the holiday, sales of clothing or footwear are tax-free if the sales price is less than $100. The sales tax resistance doesn’t apply to the sale of frills (e.g., jewelry, handbags, luggage, umbrellas, wallets, watches, and other similar items), special clothing or footwear primarily calculated for commanding try, or to the rental of clothing or footwear (e.g., tuxedo or bowling shoe rentals). A nonexclusive list of “clothing” that is exempt from sales tax during the holiday is on the Oklahoma Tax Fee’s website.

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South Carolina Tax-Free Weekend

Shoppers in South Carolina should plot to buy their back-to-school gear from August 6 to August 8, 2021. That’s when they can avoid paying sales tax on buys of clothing, footwear, frills, school equipment, computers, software, printers, and certain bed and bath equipment. The resistance does not, but, apply to sales of jewelry, blusher, eyewear, wallets, watches, furniture, or any item to be used in a trade or affair. The rental of clothing or footwear is taxable, too. Bonus examples of items that are both exempt and taxable items during the sales tax holiday are posted on the South Carolina Sphere of Revenue’s website.

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Tennessee Tax-Free Weekend

Tennessee’s back-to-school sales tax holiday runs from July 30 to August 1, 2021. Clothing, footwear, and school equipment (counting art equipment) priced at or below $100 are tax-free during the holiday, as are computers and tablets costing $1,500 or less. While clothing qualifies for the resistance, clothing frills such as jewelry, handbags, or sports and recreational gear do not. The resistance also doesn’t apply to electronic storage media (e.g., flash drives and compact discs), in isolation bought software, printer equipment, household appliances, items used in a trade or affair, or to items that are rented. More perfect lists of exempt items and taxable items can be found on the Tennessee Sphere of Revenue website (click on links to view lists).

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Texas Tax-Free Weekend

• State sales tax rate: 6.25%
• Average collective state and local sales tax rate: 8.19%
• Dates of sales tax holiday: August 6 to 8, 2021
• Go to Texas’ Full State Profile

Texas holds a tax-free weekend for back-to-school shoppers from August 6 to 8, 2021. During this annual sales tax holiday, you can buy most clothing, footwear, school equipment, and backpacks without having to pay sales tax if the item bought is sold for less than $100. The Texas Comptroller’s office has lists of exempt and taxable items for clothing, footwear and other items and for school equipment on its website.

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Virginia Tax-Free Weekend

• State sales tax rate: 5.3% (includes mandatory 1% local tax)
• Average collective state and local sales tax rate: 5.75%
• Dates of sales tax holiday: August 6 to 8, 2021
• Go to Virginia’s Full State Profile

Virginia’s sales tax holiday applies to much more than just back-to-school equipment. From August 6 to 8, 2021, you can buy qualifying school equipment, clothing, footwear, cyclone and urgent circumstances attentiveness items, energy-well-methodical appliances, and water-saving harvest without paying sales tax. But, for buys to be tax-free, the items sold cannot exceed certain price limits. For reason, school equipment can’t be sold for more than $20, and clothing and footwear must be priced at $100 or less. For cyclone and urgent circumstances attentiveness harvest, portable generators can’t cost more than $1,000, gas-powered chainsaws must be sold for $350 or less, chainsaw frills must be priced at or below $60, and other cyclone attentiveness items can’t be sold for more than $60. Energy-well-methodical (Energy Star) and water-saving (WaterSense) harvest can’t be priced above $2,500. The Virginia Sphere of Taxation has lists of exempt and taxable school equipment, clothing, and footwear; cyclone and urgent circumstances attentiveness harvest; and Energy Star and WaterSense harvest on its website (click on links to view lists).

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West Virginia Tax-Free Weekend

West Virginia is the new kid on the block when it comes to back-to-school sales tax holidays. The state is holding its first tax-free weekend for back-to-school shopping from July 30 to August 2, 2021. On those days, sales tax doesn’t apply to buys of clothing and footwear costing $125 or less, school equipment with a hold price of no more than $50, school lessons equipment priced at or below $20, laptop and tablet computers costing$500 or less; and sports gear sold for no more than $150. For purposes of the sales tax resistance, “clothing” does not include frills, defending gear, sewing gear and equipment, sports or recreational gear, belt buckles sold unconnectedly, costume masks sold unconnectedly, and patches and emblems sold unconnectedly. Items bought for use in a trade or affair don’t qualify for the resistance, either. More in rank on what is or isn’t exempt during the state’s tax-free weekend is void on the West Virginia Tax Sphere’s website.