What States Have Taxes?
- Income taxes are perhaps the most familiar type of tax to workers since all workers are subject to them. The majority of states also impose income taxes but a handful do not, including Alaska, Florida, New Hampshire, Nevada, South Dakota, Texas, Tennessee, Washington and Wyoming.
- Sales taxes are imposed on certain goods and services. For instance, if your state has a 5 percent sales tax and you buy a TV that costs $500, you will pay $525 due to the tax. There are only five states that do not impose sales taxes, including Alaska, New Hampshire, Montana, Oregon and Delaware. On the other hand, California has the highest state sales tax at 7.25 percent.
- Even if you live in Alaska or New Hampshire, the two states that don't have an income or sales tax, you will still face other forms of taxes. For instance, every state imposes taxes on beer and cigarettes. You'll also pay taxes on gasoline, unless you live in Alaska. State and local governments also impose property taxes on real estate, such as homes, and vacant land.
- Local government can impose taxes beyond those charged by your state government. For example, if you live in California and your local government imposes a 2 percent sales tax you will pay 9.25 percent in sales taxes on goods and services. Also, local governments in states that do not impose sales tax may impose sales taxes.
