State Tax

Table of Contents Key Findings There are over 11,000 sales tax jurisdictions in the United States, with widely varying rates. Among major cities, Tacoma, Washington imposes the highest combined state and local sales tax rate, at 10.30 percent. Five other cities—Fremont, Los Angeles, and Oakland, California; Chicago, Illinois; and Seattle, Washington—are tied for the second
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This week’s map showcases states which levy alternative minimum taxes (AMTs) to prevent corporations from reducing their corporate income tax liability beyond a certain level. Under an AMT, corporations are required to calculate their income tax liability under two systems and pay the higher amount. This requirement under the federal AMT imposed steep compliance costs
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Today’s map zeroes in on states that have a “marriage penalty” in their individual income tax brackets. Under a graduated-rate income tax system, a taxpayer’s marginal income is subject to progressively higher tax rates. A marriage penalty exists when a state’s income brackets for married taxpayers filing jointly are less than double the bracket widths that
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A vehicle miles traveled (VMT) proposal gaining steam in Pennsylvania would be the equivalent of a state gas tax of more than $2 per gallon, and that’s not all the Commonwealth is considering. With infrastructure spending and taxation—both state and federal—the topics of the day, Pennsylvania’s recently appointed Transportation Revenue Options Commis­sion (TROC) has published
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This map shows state gas tax rates as of July 2021, using recently released data from the American Petroleum Institute. States levy gas taxes in a variety of ways, including per-gallon excise taxes collected at the pump, excise taxes imposed on wholesalers (which are passed along to consumers in the form of higher prices), and sales taxes that apply
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Job creation tax credits. Investment tax credits. Research and development tax credits. Payroll withholding tax rebates. Property tax abatements. Those are just five of the major categories of tax incentives states offer with the goal of encouraging new investment and economic development in their state. Nearly all states offer at least one of those major
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While sales tax holidays have been politically popular for a long time, they’ve seen a boost with lawmakers in several states this year as a way to share unanticipated surpluses with taxpayers. Although state budgets may be in unusual places this year, sales tax holidays remain the same as they always have been—ineffective and inefficient.
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Businesses’ tax liability can differ markedly across states, and policymakers often pay attention to this competitive tax landscape. What is less often remarked upon, however, is the variation of tax treatment within a given state. Different industries and activities can face radically different tax burdens within the same state due to non-neutralities in the tax
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Table of Contents Key Findings Forty-five states and the District of Columbia collect statewide sales taxes. Local sales taxes are collected in 38 states. In some cases, they can rival or even exceed state rates. The five states with the highest average combined state and local sales tax rates are Louisiana (9.55 percent), Tennessee (9.547
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When most people think about “business taxes,” the corporate income tax is usually the first that comes to mind. Corporate income taxes generate sizable tax burdens for businesses—especially at the federal level—but at the state level, the corporate income tax is just one of many taxes businesses pay. For many companies, state corporate tax burdens
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Today’s map focuses on states’ effective tax rates on owner-occupied housing. This is the average amount of residential property taxes actually paid, expressed as a percentage of home value. Because property taxes are tied to housing values, it makes sense that the actual dollar amounts of property taxes tend to be higher in places with
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Tax reform has paid off for the Tar Heel State. North Carolina features one of the nation’s most competitive tax environments for businesses across the industry spectrum, and the state currently boasts the nation’s third-best effective tax rates for newly established firms and fifth-best rates for mature firms, according to a new analysis conducted by
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After weeks of deliberations, Arizona Gov. Doug Ducey (R) this week signed into law a budget for fiscal year (FY) 2022 that reduces the state’s individual income tax rates and consolidates brackets, a plan that will help restore Arizona’s reputation as a low-tax alternative to California. The enacted law kept the basic framework of the
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