Oklahoma is 25th in taxation rates

Oklahoma ranks 25th in the nation in a study of high taxation rates, according to WalletHub.com.

The study compared state and local taxes among the 50 states and the District of Columbia against the national median. Every year, the average U.S. household pays more than $5,700 in federal income taxes, according to the Bureau of Labor Statistics.

According to WalletHub’s 2016’s States with the Highest & Lowest Tax Rates, “As you might expect, differences in state tax obligations — as well as the services for which tax dollars are allocated — can drive residents out of or draw them in to a state and thus impact the strength of local economies. Such trends are evident among professional athletes and retirees, for example, groups that often relocate to Florida or Texas for the income-tax breaks they offer.”

The lowest tax rates

  1. Alaska
  2. Delaware
  3. Montana
  4. Wyoming
  5. Nevada
  6. Tennessee
  7. Idaho
  8. California
  9. South Carolina
  10. Florida
  11. Oklahoma

The highest tax rates

  1. New Jersey
  2. Iowa
  3. Ohio
  4. Michigan
  5. New York
  6. Rhode Island
  7. Connecticut
  8. Wisconsin
  9. Nebraska
  10. Illinois

The study revealed for Oklahoma:

  • The total state and local tax rate on median Oklahoma household is 10.64 percent.
  • The difference between Oklahoma and national average is less than 1 percent.

The annual state and local taxes on median Oklahoma households is $4,631.

Oklahoma is No. 12 in adjusted overall rank (based on cost-of-living index).

Other study results:

Lowest Gas Taxes

  1. Alaska
  2. New Jersey
  3. South Carolina
  4. Oklahoma
  5. Missouri

Highest Gas Taxes

  1. California
  2. Hawaii
  3. New York
  4. Washington
  5. Pennsylvania

Lowest Cigarette Taxes

  1. Missouri
  2. Virginia
  3. Louisiana
  4. Georgia
  5. Alabama

Highest Cigarette Taxes

  1. Hawaii
  2. Connecticut
  3. Rhode Island
  4. Massachusetts
  5. New York

Food Tax Rates

Worst States

  1. Louisiana
  2. Idaho
  3. Kansas
  4. Mississippi
  5. Tennessee

35 States have no sales tax on food

States with sales tax on food

Oklahoma, Idaho, Utah, South Dakota, Kansas, Missouri, Arkansas, Louisiana, Illinois, Mississippi, Alabama, Georgia, Tennessee, North Carolina, Virginia

Highest Property taxes

  1. Oklahoma

Highest Income Taxes

  1. Oklahoma ($1,315)

Lowest State Sales Tax

  1. Oklahoma (5.37 percent)
  • Tax rates in the most expensive states are three times higher than those in the least expensive states.
  • Tax rates are 10.56 percent higher in Blue States, $6,040, than in Red States, $5,463.
  • Washington has the highest sales and excise tax rate, 8.16 percent, which is nine times higher than in Oregon, the state with the lowest, 0.93 percent.