States With the Highest Sales Taxes
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10 States With the Highest Sales Taxes

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Before you embark on a shopping spree in any of the 10 worst states for sales taxes, make extra room in your budget. These states' sales tax rates are high, and local sales taxes can push the tab even higher. For example, Tennessee has the nation's second-highest average combined sales tax rate, at 9.46%, once both state and local sales taxes are factored in, according to the Tax Foundation.

But retirees and other relocators shouldn't judge a state by its sales tax alone. Residents of the Volunteer State pay no state income tax, for instance, making Tennessee one of the more tax-friendly states for retirement despite the high sales taxes. More good news for budget-conscious retirees: Most states exempt food and prescription drugs from state sales taxes, or charge a lower rate for those items.

SEE ALSO: 13 States That Tax Social Security

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Kiplinger\'s state-by-state guide to taxes on retirees is updated annually based on information from state tax departments, Wolters Kluwer Tax & Accounting and the Tax Foundation. All data are for the 2017 tax year unless otherwise noted. Combined state and local sales tax rates were calculated by the Tax Foundation.

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States With the Highest Sales Taxes | Slide 2 of 11

10. California

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Overall Rating for Taxes on Retirees: Mixed

State Sales Tax: 7.25% state levy. Localities can add as much as 2.5%, and the average combined rate is 8.25%, according to the Tax Foundation.

Income Tax Range: Low: 1% (on up to $16,030 of taxable income for married joint filers and up to $8,015 for those filing individually); High: 13.3% (on more than $1,074,996 for married joint filers and $1 million for those filing individually).

Taxes on Social Security: Benefits are not taxed.

For details on property taxes, estate/inheritance taxes, taxes on retirement income and tax breaks for retirees see the complete guide to taxes on retirees in California.

SEE ALSO: 10 Cheapest U.S. Cities to Live In

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States With the Highest Sales Taxes | Slide 3 of 11

9. New York

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Overall Rating for Taxes on Retirees: Not tax-friendly

State Sales Tax: 4% state levy. Localities can add as much as 4.88%, and the average combined rate is 8.49%, according to the Tax Foundation. In the New York City metro area, there is an additional 0.375% sales tax to support transit. Clothing and footwear that cost less than $110 (per item or pair) are exempt from sales tax.

Income Tax Range: Low: 4.0% (on up to $8,5000 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 allows localities to impose an income tax; the average levy is 2.11%, per the Tax Foundation.

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Taxes on Social Security: Benefits are not taxed.

For details on property taxes, estate/inheritance taxes, taxes on retirement income and tax breaks for retirees see the complete guide to taxes on retirees in New York.

SEE ALSO: 10 Most Expensive U.S. Cities to Live In

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States With the Highest Sales Taxes | Slide 4 of 11

8. Kansas

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Overall Rating for Taxes on Retirees: Least tax-friendly

State Sales Tax: 6.5% state levy. Localities can add as much as 4%, and the average combined rate is 8.62%, according to the Tax Foundation. These rates apply to groceries as well. A food sales tax credit of $125 per person is available to seniors and those claiming dependents; to qualify for the credit, federal adjusted gross income may not exceed $30,615.

Income Tax Range: Low: 2.9% (on $15,000 or less of taxable income for single filers and $30,000 or less for joint filers); High: 5.2% (on more than $30,000 of taxable income for single filers and more than $60,000 for joint filers). For the 2018 tax year, the low rate will rise to 3.1%, and the high rate to 5.7%.

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Taxes on Social Security: Social Security benefits are exempt from Kansas income tax for residents with a federal adjusted gross income of $75,000 or less.

For details on property taxes, estate/inheritance taxes, taxes on retirement income and tax breaks for retirees see the complete guide to taxes on retirees in Kansas.

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States With the Highest Sales Taxes | Slide 5 of 11

7. Illinois

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Overall Rating for Taxes on Retirees: Mixed

State Sales Tax: 6.25% state levy. Localities can add as much as 4.75%, and the average combined rate is 8.64%, according to the Tax Foundation. Food, prescription drugs and non-prescription drugs are all taxed at 1% by the state; candy and soda, no matter where they're purchased, are taxed at 6.25%.

Income Tax Range: There is a flat rate of 4.95% of federal adjusted gross income after modifications.

Taxes on Social Security: Benefits are not taxed.

For details on property taxes, estate/inheritance taxes, taxes on retirement income and tax breaks for retirees see the complete guide to taxes on retirees in Illinois.

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States With the Highest Sales Taxes | Slide 6 of 11

6. Oklahoma

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Overall Rating for Taxes on Retirees: Tax-friendly

State Sales Tax: 4.5% state levy. Localities can add as much as 6.5%, and the average combined rate is 8.86%, according to the Tax Foundation.

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).

Taxes on Social Security: Benefits are not taxed.

For details on property taxes, estate/inheritance taxes, taxes on retirement income and tax breaks for retirees see the complete guide to taxes on retirees in Oklahoma.

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States With the Highest Sales Taxes | Slide 7 of 11

5. Washington

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Overall Rating for Taxes on Retirees: Tax-friendly

State Sales Tax: 6% state levy. Municipalities can add up to 3.4% to that, with the average combined rate at 8.92%, according to the Tax Foundation.

Income Tax Range: Washington has no state income tax.

Taxes on Social Security: Benefits are not taxed.

For details on property taxes, estate/inheritance taxes, taxes on retirement income and tax breaks for retirees see the complete guide to taxes on retirees in Washington.

SEE ALSO: The Retiree Tax Quiz

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States With the Highest Sales Taxes | Slide 8 of 11

4. Alabama

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Overall Rating for Taxes on Retirees: Tax-friendly

State Sales Tax: 4% state levy. Localities can add as much as 7% to that, and the average combined rate is 9.01%, according to the Tax Foundation. Alabama is one of the few states that does not exempt food from sales tax.

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). Alabama also allows residents to deduct all of their federal income tax from state taxable income.

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Taxes on Social Security: Benefits are not taxed.

For details on property taxes, estate/inheritance taxes, taxes on retirement income and tax breaks for retirees see the complete guide to taxes on retirees in Alabama.

SEE ALSO: 5 States With No State Sales Tax

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States With the Highest Sales Taxes | Slide 9 of 11

3. Arkansas

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Overall Rating for Taxes on Retirees: Not tax-friendly

State Sales Tax: 6.5% state levy. Localities can add as much as 5.125%, and the average combined rate is 9.30%, according to the Tax Foundation. The state taxes food at 1.5%, and localities can add to that.

Income Tax Range: Low: 0.9% (on up to $4,299 of taxable income); High: 6.9% (on more than $35,100 of taxable income, if your total income exceeds $75,000).

Taxes on Social Security: Benefits are not taxed.

For details on property taxes, estate/inheritance taxes, taxes on retirement income and tax breaks for retirees see the complete guide to taxes on retirees in Arkansas.

SEE ALSO: The Least Tax-Friendly States in the U.S

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States With the Highest Sales Taxes | Slide 10 of 11

2. Tennessee

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Overall Rating for Taxes on Retirees: Tax-friendly

State Sales Tax: 7% state levy. Localities can add up to 2.75%, with an average combined rate of 9.46%, according to the Tax Foundation. Groceries are taxed at 4% by the state, plus whatever local rate is in effect. Local taxes are limited, though: Only the first $1,600 of any item is taxable.

Income Tax Range: There's no state income tax, so salaries, wages, Social Security benefits, IRA distributions and pension income are not taxed. But Tennessee does have the Hall Tax, which taxes dividends and some interest at 4% (in 2017). The first $1,250 in taxable income for individuals ($2,500 for joint filers) is exempt. The rate for the Hall Tax is set to decline annually by one percentage point until it is phased out entirely by 2021.

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Taxes on Social Security: Benefits are not taxed.

For details on property taxes, estate/inheritance taxes, taxes on retirement income and tax breaks for retirees see the complete guide to taxes on retirees in Tennessee.

SEE ALSO: Retirement Planning Mistakes You'll Regret Forever

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States With the Highest Sales Taxes | Slide 11 of 11

1. Louisiana

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Overall Rating for Taxes on Retirees: Tax-friendly

State Sales Tax: 5.0% state levy. Localities can add as much as 7%, and the average combined rate is 9.98%, according to the Tax Foundation. Groceries and prescription drugs are exempt from the state's sales tax, but localities may tax these.

Income Tax Range: Low: 2% (on $12,500 or less of taxable income for individuals, $25,000 for joint filers); High: 6% (on more than $50,000 of taxable income; $100,000 for joint filers). Residents can deduct all of their federal income tax from state taxable income.

Taxes on Social Security: Benefits are not taxed.

For details on property taxes, estate/inheritance taxes, taxes on retirement income and tax breaks for retirees see the complete guide to taxes on retirees in Louisiana.

SEE ALSO: 10 Most Tax-Friendly States for Retirees

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