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                     STATE TAXATION IN SUMMARY

    In this tutorial we will briefly list state taxes. However, 
this is a very difficult area, so treat this only as a general 
guide. Laws like state tax rates change weekly, and although we 
try to keep up with the changes, it's not easy. This tutorial 
does not cover local, city, state, township, county, parish or 
special assessment district taxes. In many areas an extra penny 
or so in sales tax can be assessed in cities or other areas 
enacting such a "local option" tax.

    Unless otherwise stated, each state levies an estate tax, 
which is equal to the maximum deduction permitted under federal 
estate tax for such taxes. (In other words, the states take as 
much tax as the federal government lets them have.) 

    If a state has a state income tax, we list solely the HIGHEST 
marginal rate. Most people will pay less.

    The tax on deeds and mortgages ordinarily must be paid when a 
transfer of real estate is filed, in essence these are a real 
estate transaction tax.

Alabama

Sales tax- 4%
Income tax- Highest rate of 5% (above $ 3,000)
Deeds/Mortgages- 50 cents per $ 500 of value

Arizona

Sales tax- 5%
Income tax- Highest rate of 8% (above $ 6,000)

Arkansas

Sales tax- 4%
Income tax- Highest rate of 6% (over $ 25,000)

California

Sales tax- 6% (This is 4 3/4% to the state and 1 1/4% to the city 
or county)
Income tax- Highest rate of 9.3%
Deeds/Mortgages- May be taxed on local level

Colorado

Sales tax- 3%
Income tax- Highest rate of 5%
Deeds/Mortgages- 1 cent per $ 100 of value

Connecticut

Sales tax- 7 to 7 1/2%
Income tax- Highest rate of 12%; limited to capital gains and 
interest income
Deeds/Mortgages- .45% of purchase price, plus $ 1.10 per $ 10,000 
in value; other rates for "open space land"

Delaware

Sales Tax- None on state level; some localities may have sales 
tax
Income tax- Highest rate of 7.7% (above $ 10,000)
Deeds/Mortgages- 1% of value (many exemptions)

District of Columbia

Sales tax- 6%
Income tax- Highest rate of 9.5% (over $ 20,000)
Deeds/Mortgages- 1% transfer tax; 1% recordation tax

Florida

Sales tax- 6%
Income tax- Not in effect
Deed/Mortgages- 55 cents per $ 100 of value

Georgia

Sales tax- state rate 3%; local authorities may impose an 
additional 3 %
Income tax- 6% (above $ 5,000)
Deeds/Mortgages- $ 1.00 for first $ 1,000, then 10 cents per hundred

Hawaii

Sales tax- Variable rate from 4% to 4 1/2%
Income tax- 10% (above $ 20,500)
Deeds/Mortgages- Five cents per hundred sales price, minimum of $ 1.00

Idaho

Sales tax- Generally 5%
Income tax- 8.2% (above $ 20,000)
Deeds/Mortgages- No tax

Illinois

Sales tax- Generally 5%
Income tax- 2.5% flat rate
Deeds/Mortgages- 25 cents per $ 500

Indiana

Sales tax- 5%
Income tax- 3.4%; counties may also levy an income tax
Deeds/Mortgages- not presently

Iowa

Sales tax- 4%
Income tax- 9.98% over $ 45,000
Deeds/Mortgages- 55 cents per $ 500.00

Kansas

Sales tax- 4%
Income tax- 5.3% above $ 35,000 for married; 6.1% above $ 35,000 
for single individuals
Deeds/Mortgages- not taxed

Kentucky

Sales tax- 5%
Income tax- 6% above $ 8,000
Deeds/Mortgages- 50 cents per $ 500 value

Louisiana

Sales tax- 4%; municipalities may levy additional 1.5%
Income tax- 6% over $ 50,000
Deeds/Mortgages- not taxed

Maine

Sales tax- 5%
Income tax- 8.93% over $ 250,000
Deeds/Mortgages- $ 1.10 per $ 500 consideration

Maryland

Sales tax- 5%
Income tax- 5% above $ 3,000; counties may surcharge state income 
tax
Deeds/Mortgages- not provide for on state level

Massachusetts

Warning- due to the recent bond rating downgrade, and financial 
difficulties this information is subject to instantaneous change

Sales tax- 5%
Income tax- Quite complicated
Deeds/Mortgages- $ 1.00 per $ 500

Michigan

Sales tax- 4%
Income tax- 4.6%, City of Detroit has additional tax
Deeds/Mortgages- In "small counties" 55 cents per $ 100; up to 75 
cents per $ 100 in "large counties"

Minnesota

Sales tax- 6% (Local authorities may assess additional tax)
Income tax- 8% to 9% depending on income
Deeds/Mortgages- Not provided for

Mississippi

Sales tax- 6%
Income tax- 5% in excess of $ 10,000
Deeds/Mortgages- not provided for

Missouri

Sales tax- 4.225% 
Income tax- 6% above $ 9,000
Deeds/Mortgages- not provided for

Montana

Sales tax- Not generally available
Income tax- 11% over $ 35,000
Deeds/Mortgages- Not provided for

Nevada

Sales tax- 3.5%
Income tax- not provided for
Deeds/Mortgages- not provided for

New Hampshire

Sales tax- None except on hotel rooms and meals (7 %)
Income tax- not provided for
Deeds/Mortgages- not provided for

New Jersey

Sales tax- 6%
Income tax- 3.5% above $ 35,000
Deeds/Mortgages- not provided for

New Mexico

Sales tax- 4.75%
Income tax- 1.8% to 8.5% 
Deeds/Mortgages- not provided for

New York

Sales tax- 4%; local authorities assess additional amounts
Income tax- 7.875% above $ 13,000; certain local authorities also 
have income tax
Deeds/Mortgages/Transactions- $ 2..00 per $ 5.00; and on 
transactions of over one million dollars, 10% of gain on the real 
estate transactions

North Carolina

Sales tax- 3% (with many exceptions and local assessments)
Income tax- 7% above $ 10,000
Deeds/Mortgages- 50 cents per $ 500

North Dakota

Sales tax- 5%
Income tax- 12% over $ 50,000
Deeds/Mortgages- None

Ohio

Sales tax- 5%
Income tax- 6.9% on amounts over $ 100,000 (cities may impose 
additional taxes)
Deeds/Mortgages- 10 cents per $ 100

Oklahoma

Sales tax- 4% (municipalities may also tax)
Income tax- 17% above $ 49,000
Deeds/Mortgages- 75 cents per $ 500

Oregon

Sales tax- None
Income tax- 9 %
Deeds/Mortgages- in certain areas only

Pennsylvania

Sales tax- 6%
Income tax- varies on source of income, basic rate 2.1%
Deeds/Mortgages- 1% of sales price

Rhode Island

Sales tax- 6%
Income tax- 21.21% of federal tax income taxes
Deeds/Mortgages- $ 1.10 per $ 500 consideration

South Carolina

Sales tax- 5% with certain exceptions
Income tax- 7% above $ 10,000
Deeds/Mortgages- $ 3.30 per $ 1000 consideration with some 
exceptions

South Dakota

Sales tax- 4%
Income tax- not provided for
Deeds/Mortgages- 50 cents per $ 500

Tennessee

Sales tax- 5 1/2%; local authorities may also assess sales tax
Income tax- see counsel, many exemptions
Deeds/Mortgages- 11 1/2 cents per $ 100

Texas

Sales tax- 6%; some municipalities also assess taxes
Income tax- Not provided for; however certain classes of 
    businesses pay gross receipts taxes
Deeds/Mortgages- Generally not taxed

Utah

Sales tax- 5 1/64%
Income tax- 7.35% highest marginal rate- calculation of taxable 
    income is complicated
Deeds/Mortgages- Generally not taxed

Vermont

Sales tax- 4%
Income tax- 24% of federal income tax
Deeds/Mortgages- 1 1/4%; certain exemptions apply to sales of 
    residences

Virginia

Sales tax- 3 1/2%
Income tax- 5 3/4% above $ 16,000; some localities may assess a 
    local sales tax 
Deeds/Mortgages- 15 cents per hundred dollars of value

Washington

Sales- 6.5%; local jurisdictions may assess an additional .5%
Income tax- None
Deeds/Mortgages- 1.28% of value

West Virginia

Sales tax- 6%
Income tax- 6.5% with many exceptions
Deeds/Mortgages- $ 1.10 per $ 500 value; county may also add an 
    additional $ 1.10

Wisconsin

Sales tax- 5%
Income tax- 6.93% highest marginal rate
Deeds/Mortgages- 30 cents per $ 100 of value

Wyoming

Sales tax- 3% in general
Income tax- None
Deeds/Mortgages- None