Most & Least Taxing States 2012

By Bloomberg BNA - 2012-04-13T16:45:59Z

Photograph by Dave Martin/AP

Company Symbol % Change
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Alabama

Income tax: 5%*
State sales tax: 4%*
Property tax per capita: $495**
Inheritance tax: None†
Estate tax: None‡

Alabama is among the states with the lowest taxes collected per capita -- $1,770 per person in 2009, according to U.S. Census data and the Tax Foundation. While it has the lowest state and local property tax collections per person, it's one of seven states that don't provide a sales tax break for groceries, according to Bloomberg BNA. (Most states don't tax food bought for home consumption or apply a lower tax rate.) At least one obsolete tax law remains on the books-- a tax for Confederate veterans from the Civil War. The tax now supports the Confederate Memorial Park, which includes a museum (left).


*Income (highest bracket available), sales and inheritance tax information provided by Bloomberg BNA.


**Property tax statistics derived from a Tax Foundation analysis of 2008 U.S. Census data.
†Inheritance taxes are based on the value of property passed to heirs. The tax rate applied is often based on the degree to which the beneficiary is related to the deceased.
‡Estate taxes are based on the value of the deceased's estate. Liability for the tax is triggered if the estate's value exceeds a threshold set by the state.

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