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Most & Least Taxing States: 2014

By Rebecca Helmes of Bloomberg BNA - 2014-04-14T23:05:22Z

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The District of Columbia’s sales tax is the lowest in its local region for the first time in 45 years, according to the Tax Foundation. The D.C. Council (the District’s local governing body) voted last year to cut the previous 6 percent sales tax rate by a quarter of a percentage point to roll back a 2009 increase that was used to cover a budget shortfall. The rate reduction and the fact that there are no other local sales tax rates give Washington, D.C., one of the lowest combined sales tax rates in the country. 

Residents may feel the pinch more in property ownership than in retail shopping. Property tax collections are some of the highest in the country, at $2,871 per person.

*Exemption is $1 million.