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Most & Least Taxing States 2013

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

Photograph by Getty Images

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Top income tax rate: 4.63% (flat tax)
Sales tax: 2.9%
Property tax per capita: $1,601

Colorado made history in 2012 as one of the first two states to legalize recreational adult marijuana use. Now the state's figuring out how to tax and regulate it. A legislative panel proposed imposing a 15 percent excise tax, 15 percent sales tax, plus any other local taxes, on recreational marijuana. The legislature has not approved the proposal;  voters will weigh in on the final proposal in November. 

Colorado is one of 14 states that tax Social Security income. Those age 55 or older get an exemption for the first $20,000 of Social Security income. For taxpayers 65 or older, the exemption applies to the first $24,000.