WalletHub has released its annual report on the states with the highest and lowest tax rates in the country.
The consumer finance site's report, 2016’s States with the Highest & Lowest Tax Rates, compares various tax rates among the 50 states and the District of Columbia in terms of the national average consumer’s income and spending habits.
The report found that tax rates in the most expensive states were three times higher than those in the least expensive states. New York has the highest cigarette excise tax of $4.35, 26 times higher than in Missouri, the state with the lowest cigarette excise tax of $0.17. Tax rates tend to be 10.56 percent higher in Blue States than in Red States.
Washington State has the highest sales and excise tax rate, 8.16 percent, nine times higher than in Oregon, the state with the lowest, 0.93 percent. Pennsylvania has the highest gas tax, $0.5040 per gallon, or two times higher than in Alaska, the state with the lowest, at $0.1225 per gallon.
States with the Lowest Tax Rates
9 South Carolina
States with the Highest Tax Rates
42 New Jersey
46 New York
47 Rhode Island