NE #26 For State Tax Rate
(KFOR NEWS March 11, 2020) With tax season approaching, a new study calculating which states pay the most and least in taxes, shows Nebraska ranks No. 26 for the lowest state tax rate in America. Nebraska residents pay 5.56% in state taxes compared to the national average of 5.41%.
With the economy doing well, differences in state tax rates can save thousands of dollars for working families, and millions for the wealthy.
SeniorLiving.org today released its study, Highest and Lowest Tax Rates in America, using the most recent data from the Tax Foundation, U.S. Census Bureau, Zillow, AAA and the American Petroleum Institute through 2019.
The rankings were determined by measuring income tax, sales tax, property tax and gas tax in each state.
The five states paying the highest tax rate includes California, Minnesota, New York, Vermont and Kansas. The five states paying the lowest tax rate includes Alaska, New Hampshire, Montana, Delaware and Wyoming.
Here are key findings in Nebraska:
- No. 26 overall combined tax rate, 5.56%
- No. 26 income tax rate, 4.26%
- No. 41 effective property tax rate, 1.58%
- No. 25 effective sales tax rate, 6.85%
- No. 32 effective gas tax rate, 12.38%
Here are additional key national findings:
- There is a large 7% disparity between the state with the lowest combined median tax rate (Alaska) and the state with the highest (California).
- Seven states have no income tax (Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming), while four others have no effective state sales tax (New Hampshire, Montana, Delaware and Oregon).
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