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Friday, February 7, 2025

GE Tax Imposed on 119% of State Personal Income

By Tax Foundation @ 3:14 PM :: 2443 Views
 

State and Local Sales Tax Rates, 2025

by Jared Walczak, Tax Foundation, February 4, 2025 (excerpts)

The five states with the highest average combined state and local sales tax rates are Louisiana (10.12 percent), Tennessee (9.56 percent), Arkansas (9.46 percent), Washington (9.43 percent), and Alabama (9.43 percent). The five states with the lowest average combined rates are Alaska (1.82 percent), Hawaii (4.50 percent), Wyoming (5.44 percent), Maine (5.50 percent), and Wisconsin (5.70 percent)….

The sales taxes in Hawaii, New Mexico, and South Dakota have broad bases that include many business-to-business services….

Hawaii has the broadest sales tax in the United States, but it taxes many products multiple times and, by one estimate, ultimately taxes 119 percent of the state’s personal income. This base is far wider than the national median, where the sales tax applies to 36 percent of personal income….

read … 2025 State and Local Sales Tax Rates

BACKGROUND:

2015: Raise it Higher? GE Tax one among worst practices in fifty states

2016: GE Tax: Audit Shows Tourists Pay 14.1%--not 30%

2018: Hawaii GE Tax Takes $8,360 from Family of Four 

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