Most & Least Taxing States 2012

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

Photograph by Getty Images

Company Symbol % Change
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Iowa

Income tax: 8.98%
State sales tax: 6%
Property tax per capita: $1,245
Inheritance tax: See note*
Estate tax: None

The top bracket of Iowa's state income tax reaches 8.98 percent at $64,755, a relatively low amount compared with other states. Its tax on Social Security income will be phased out in 2014, according to Bloomberg BNA. If you want to raise a toast in celebration, it'll cost you: Iowa has one of the highest excise tax rates on table wine and spirits, according to the Tax Foundation and the Distilled Spirits Council of the United States.

* Spouse and lineal-descendant transfer is tax-free; sibling or child in-law transfer is taxed at 5 to 10 percent; all other transfers are taxed at 10 to 15 percent.

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