Most & Least Taxing States 2013

By Rebecca Helmes of Bloomberg BNA - 2013-04-19T17:41:14Z

Photograph by Joshua Lott/Bloomberg 

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Arizona

Top income tax rate: 4.54%
Sales tax: 6.6%
Property tax per capita: $1,147

Arizona's state and local tax burden of $3,006 per capita is small compared with that of many other states, thanks to lower-than-average property taxes. That means the decline in home prices hit Arizona's municipalities harder than those in many other states. Arizona does have high sales taxes, though -- the Tax Foundation ranks it second in combined state and local sales taxes, at 9.16 percent. 

Governor Jan Brewer set out to overhaul and simplify the state sales tax system in 2013. The state uses a complicated "transaction privilege" tax system that has sellers and lessors ultimately responsible for sales taxes, though they may pass the cost on to buyers or lessees. Brewer has faced opposition from local governments.

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