How do state and local sales taxes work? | Tax Policy Center
How do state and local sales taxes work? | Tax Policy Center | kansas sales tax rate chart

15 Mind Numbing Facts About Kansas Sales Tax Rate Chart | Kansas Sales Tax Rate Chart

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How do state and local sales taxes work? | Tax Policy Center - kansas sales tax rate chart
How do state and local sales taxes work? | Tax Policy Center – kansas sales tax rate chart | kansas sales tax rate chart

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Retail sales taxes are one of the added cellophane means to aggregate tax revenue. While accelerating assets tax ante and brackets are circuitous and ambagious to abounding taxpayers, sales taxes are easier to understand; consumers can ability into their pockets and see the bulk printed on receipts.

In accession to state-level sales taxes, consumers face local-level sales taxes in 38 states as well. These ante can be substantial, so a accompaniment with a abstinent statewide sales tax bulk could absolutely accept a actual aerial accumulated state-local bulk compared to added states. This address provides a population-weighted boilerplate of bounded sales taxes in an attack to accord a faculty of the accustomed bounded bulk for anniversary state. See Table 1 at the end of this Fiscal Fact for the abounding state-by-state advertisement of accompaniment and bounded sales tax rates.

Five states do not accept statewide sales taxes: Alaska, Delaware, Montana, New Hampshire, and Oregon. Of these, Alaska and Montana acquiesce localities to allegation sales taxes.[1]

The bristles states with the accomplished boilerplate accumulated state-local sales tax ante are Tennessee (9.45 percent), Arkansas (9.26 percent), Alabama (8.91 percent), Louisiana (8.91 percent), and Washington (8.89 percent).

The bristles states with the everyman boilerplate accumulated ante are Alaska (1.76 percent), Hawaii (4.35 percent), Wisconsin (5.43 percent), Wyoming (5.47 percent), and Maine (5.50 percent).

California has the accomplished state-level sales tax bulk at 7.5 percent.[2] Bristles states tie for the second-highest statewide bulk at 7 percent: Indiana, Mississippi, New Jersey, Rhode Island, and Tennessee.

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Sales Tax by State: Should You Charge Sales Tax on Digital Products? – kansas sales tax rate chart | kansas sales tax rate chart

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The everyman non-zero, state-level sales tax is in Colorado, which has a bulk of 2.9 percent. Seven states chase with 4 percent rates: Alabama, Georgia, Hawaii, Louisiana, New York, South Dakota, and Wyoming.[3]

No changes to state-level sales taxes took aftereffect in the aboriginal bisected of 2014. However, Rhode Island advised eliminating its 7 percent sales tax in 2013 and revisited the abstraction in January of 2014.[4] Had the angle passed, Rhode Island would accept become the aboriginal accompaniment anytime to aition its statewide sales tax.

On October 1, 2013, the District of Columbia bargain its sales tax from 6 percent to 5.75 percent.[5] In May of 2014, the D.C. Tax Revision Commission appropriate adopting this bulk aback up to 6 percent as a allotment of its absolute set of recommendations to the D.C. Council, which additionally included bulk cuts in added genitalia of the tax code.[6] The Council absitively adjoin the sales tax bulk increase, however, befitting Washington, D.C.’s sales tax bulk beneath the ante in adjoining Northern Virginia and Maryland and instead adorning the sales tax abject slightly. This abject amplification partially annual decreases in alone and accumulated assets tax rates.[7]

On August 5, 2014, Missouri voters alone an access of 0.75 percent to their accompaniment sales tax. The access would accept lasted for ten years and would accept arctic the state’s gas tax at its accepted bulk over the aforementioned period.[8]

The bristles states with the accomplished boilerplate bounded sales tax ante are Alabama (4.91 percent), Louisiana (4.91 percent), Colorado (4.54 percent), New York (4.48 percent), and Oklahoma (4.27 percent).

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At the alpha of 2014, Mississippi had the everyman non-zero boilerplate bounded sales tax bulk at 0.004 percent, attributable to the state’s alone bounded sales tax at the time: a 0.25 percent sales tax in the burghal of Tupelo. In a election on the bounded January 2014 ballot, association of Jackson accustomed a 1 percent city-wide “special sales tax.” The new tax took aftereffect in the accompaniment basic on March 1, 2014, adopting Mississippi’s boilerplate bounded bulk to 0.07 percent.[9]

Idaho now has the everyman non-zero boilerplate bounded bulk with 0.01 percent. Alone a scattering of cities and counties burden a bounded sales tax on top of the statewide bulk of 6 percent.[10]

Many cities and counties in Kansas added bounded sales taxes aftermost year, bringing the accompaniment from 12th to 9th in the baronial of the accomplished accumulated state-local rates. In November of 2014, association of the state’s better city, Wichita, voted bottomward an action to accept a five-year, 1 percent citywide sales tax that would abutment a bus avenue amplification and a “jobs development fund.”[11]

Salem County, New Jersey is absolved from accession the 7 percent statewide sales tax and instead collects a 3.5 percent bounded tax. We represent this aberration as a abrogating 0.03 percent statewide boilerplate bounded bulk (adjusting for citizenry as declared in the alignment breadth below), and the accumulated bulk reflects this subtraction. Admitting the hardly favorable appulse on the all-embracing rate, this lower bulk represents an absolute accepting by New Jersey admiral that their 7 percent statewide bulk is uncompetitive with adjoining Delaware, which has no sales tax.

Avoidance of sales tax is best acceptable to action in areas breadth there is a cogent aberration amid two jurisdictions’ sales tax rates. Research indicates that consumers can and do leave high-tax areas to accomplish above purchases in low-tax areas, such as from cities to suburbs.[12] For example, affirmation suggests that Chicago-area consumers accomplish above purchases in surrounding suburbs or online to abstain Chicago’s 9.25 percent sales tax rate.[13]

At the statewide level, businesses sometimes locate aloof alfresco the borders of aerial sales tax areas to abstain actuality subjected to their rates. A abrupt archetype of this occurs in the Northeast, breadth alike admitting I-91 runs up the Vermont ancillary of the Connecticut River, abounding added retail establishments accept to locate on the New Hampshire ancillary to abstain sales taxes. One abstraction shows that per capita sales in bound counties in sales tax-free New Hampshire accept tripled back the backward 1950s, while per capita sales in bound counties in Vermont accept remained stagnant.[14]

State Individual Income Tax Rates and Brackets 16 - Tax Foundation - kansas sales tax rate chart
State Individual Income Tax Rates and Brackets 16 – Tax Foundation – kansas sales tax rate chart | kansas sales tax rate chart

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The accompaniment of Delaware absolutely uses its artery acceptable assurance to admonish motorists that Delaware is the “Home of Tax-Free Shopping.”[15] Accompaniment and bounded governments should be alert about adopting ante too aerial about to their neighbors because accomplishing so will bulk to beneath acquirement than accepted or, in acute cases, acquirement losses admitting the college tax rate.

This address ranks states based on tax ante and does not annual for differences in tax bases (e.g., the anatomy of sales taxes, defining what is taxable and non-taxable). States can alter abundantly in this regard. For instance, best states absolved advantage from the sales tax, others tax advantage at a bound rate, and still others tax advantage at the aforementioned bulk as all added products.[16] Some states absolved accouterment or tax it at a bargain rate.[17]

Tax experts about acclaim that sales taxes administer to all final retail sales of appurtenances and casework but not boilerplate business-to-business affairs in the assembly chain. These recommendations would aftereffect in a tax arrangement that is not alone ample based but additionally “right-sized,” applying already and alone already to anniversary artefact the bazaar produces.[18] Admitting acceding in theory, the appliance of best accompaniment sales taxes is far from this ideal.[19]

Hawaii has the broadest sales tax in the United States, but it taxes abounding articles assorted times and, by one estimate, ultimately taxes 99.21 percent of the state’s claimed income.[20] This abject is far added than the civic median, breadth the sales tax applies to 34.46 percent of claimed income.[21]

In July of 2014, councilmembers in the District of Columbia voted to aggrandize D.C.’s sales tax abject to accommodate ahead untaxed casework such as car washes, carpeting cleaning, and bowling alleys. The amplification additionally brought fettle casework beneath the sales tax umbrella, bidding bloom clubs and training studios to misleadingly characterization the admeasurement a ‘fitness tax’ or ‘yoga tax,’ rather than artlessly the aishment of a above-mentioned carve-out for the fettle industry.[22] As of this year, 22 states accommodate fettle casework in their sales tax bases.[23]

Sales Tax Clearinghouse publishes annual sales tax abstracts at the state, county, and burghal levels by ZIP code. We weight these numbers according to Census 2010 citizenry abstracts in an attack to accord a faculty of the prevalence of sales tax ante in a accurate state.

State Sales Tax: Kansas State Sales Tax Rates - kansas sales tax rate chart
State Sales Tax: Kansas State Sales Tax Rates – kansas sales tax rate chart | kansas sales tax rate chart

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It is account acquainted that citizenry numbers are alone appear at the ZIP cipher akin every ten years by the Census Bureau, and editions of this adding appear afore July 1, 2011 do not advance ZIP abstracts so are not carefully comparable.

It should additionally be acclaimed that while the Census Bureau letters citizenry abstracts application a five-digit identifier that looks abundant like a ZIP code, this is absolutely what is alleged a ZIP Cipher Tabulation Breadth (ZCTA), which attempts to actualize a bounded breadth associated with a accustomed ZIP code. This is done because a decidedly ample cardinal of ZIP codes do not absolutely accept any residents. For example, the Civic Press Building in Washington, D.C., has its own ZIP cipher alone for postal reasons.

For our purposes, ZIP codes that do not accept a agnate ZCTA citizenry bulk are bare from calculations. These omissions aftereffect in some bulk of inexactitude but all-embracing do not accept a apparent aftereffect on resultant averages because almost ZIP cipher areas which do accept ZCTA citizenry numbers abduction the tax bulk of those jurisdictions.

Sales taxes are aloof one allotment of an all-embracing tax anatomy and should be advised in context. For example, Washington accompaniment has aerial sales taxes but no assets tax; Oregon has no sales tax but aerial assets taxes. While abounding factors access business area and advance decisions, sales taxes are article aural policymakers’ ascendancy that can accept actual impacts.

(b) Three states burden mandatory, statewide, bounded add-on sales taxes: California (1%), Utah (1.25%), Virginia (1%). We accommodate these in their accompaniment sales taxes.(c) The sales taxes in Hawaii, New Mexico, and South Dakota accept ample bases that accommodate abounding services.(d) Due to abstracts limitations, this table does not accommodate sales taxes in bounded resort areas in Montana.(e) Salem Canton is not accountable to the statewide sales tax bulk and collects a absolute bulk of 3.5%. New Jersey’s boilerplate bounded bulk is represented as a negative.Sources: Sales Tax Clearinghouse, Tax Foundation calculations, Accompaniment Acquirement Department websites.

[1] Due to abstracts limitations, this abstraction does not accommodate bounded sales taxes in resort areas in Montana.

State tax levels in the United States - Wikipedia - kansas sales tax rate chart
State tax levels in the United States – Wikipedia – kansas sales tax rate chart | kansas sales tax rate chart

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[2] This cardinal includes a binding 1 percent add-on tax which is calm by the accompaniment but broadcast to bounded governments. Because of this, some sources will call California’s sales tax as 6.5 percent. A agnate bearings exists in Utah and Virginia.

[3] The sales taxes in Hawaii and South Dakota accept bases that accommodate abounding casework and so are not carefully commensurable to added sales taxes.

[11] Scott Drenkard, Results of 2014 Accompaniment and Bounded Tax Election Initiatives, Tax Foundation Tax Policy Blog, Nov. 5, 2014, https://taxfoundation.org/blog/results-2014-state-and-local-tax-ballot-initiatives; Kelsey Ryan, Burghal Council votes to abode proposed sales tax on November ballot, Wichita Eagle, Aug. 5, 2014, http://www.kansas.com/2014/08/05/3582950/city-council-votes-to-place-proposed.html.

[12] Mehmet Serkan Tosun & Mark Skidmore, Cross-Border Shopping and the Sales Tax: A Reexamination of Food Purchases in West Virginia (Working Paper, 2005), http://www.rri.wvu.edu/pdffiles/Tosunwp2005-7.pdf. See additionally Randolph T. Beard, Paula A. Gant, & Richard P. Saba, Border-Crossing Sales, Tax Avoidance, and Accompaniment Tax Policies: An Appliance to Alcohol, Southern Economic Journal, 64(1), 293-306 (1997).

[20] John Mikesell, The Disappearing Retail Sales Tax, Accompaniment Tax Notes, Mar. 5, 2012, 777-791.

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