Wednesday, May 14, 2014

States That Are the Most Tax Friendly... Arizona Made the List!

No. 5: Arizona
State income tax: 2.59 percent-4.54 percent

State sales tax: 5.6 percent

Gas taxes and fees: $0.19 per gallon

The Grand Canyon State’s income tax rates are modest. The top rate is 4.54 percent, and that doesn’t kick in until taxable income exceeds $150,000 for single filers or $300,000 for married couples. State gas taxes are below average.
Like most states, Arizona excludes prescription drugs and food for home consumption from state sales taxes. However, all 15 counties levy an additional tax that ranges from 0.25 percent to 2 percent, and some extend that tax to apply to groceries.
There is also an annual vehicle license tax. The tax is based on an assessed value of 60 percent of the manufacturer’s base retail price, reduced by 16.25 percent for each year since the vehicle was first registered in Arizona. The rate is $2.80 for new vehicles and $2.89 for used vehicles, for each $100 of assessed value. So for a vehicle costing $18,000, the vehicle license tax for the first year would be $302.
The median property tax on the state's median home value of $187,700 is $1,356, according to the Tax Foundation.

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