Where Does Your State Stand?
Taxes and Fees on Monthly Wireless Service, July 2010
| Rank | State | State/Local Sales Tax | State-Local Wireless Rate | Federal Rate (USF) | Combined Federal/ State/ Local Rate |
|---|---|---|---|---|---|
| 1 | Nebraska | 7.00% | 18.64% | 5.05% | 23.69% |
| 2 | Washington | 9.00% | 17.95% | 5.05% | 23.00% |
| 3 | New York | 8.25% | 17.78% | 5.05% | 22.83% |
| 4 | Florida | 7.25% | 16.57% | 5.05% | 21.62% |
| 5 | Illinois | 9.00% | 15.85% | 5.05% | 20.90% |
| 6 | Rhode Island | 7.00% | 14.62% | 5.05% | 19.67% |
| 7 | Missouri | 7.23% | 14.23% | 5.05% | 19.28% |
| 8 | Pennsylvania | 7.00% | 14.08% | 5.05% | 19.13% |
| 9 | Kansas | 8.13% | 13.34% | 5.05% | 18.39% |
| 10 | Texas | 8.25% | 12.43% | 5.05% | 17.48% |
| 11 | Maryland | 6.00% | 12.23% | 5.05% | 17.28% |
| 12 | Utah | 6.8% | 12.16% | 5.05% | 17.21% |
| 13 | South Dakota | 5.96% | 12.02% | 5.05% | 17.07% |
| 14 | Arizona | 7.2% | 11.97% | 5.05% | 17.02% |
| 15 | D.C. | 5.75% | 11.58% | 5.05% | 16.63% |
| 16 | Tennessee | 9.25% | 11.58% | 5.05% | 16.63% |
| 17 | Arkansas | 8.38% | 11.07% | 5.05% | 16.12% |
| 18 | Oklahoma | 8.45% | 10.74% | 5.05% | 15.79% |
| 19 | North Dakota | 6.00% | 10.68% | 5.05% | 15.73% |
| 20 | California | 9.25% | 10.67% | 5.05% | 15.72% |
| 21 | New Mexico | 7.60% | 10.52% | 5.05% | 15.57% |
| 22 | Kentucky | 6.00% | 10.42% | 5.05% | 15.47% |
| 23 | Colorado | 7.56% | 10.40% | 5.05% | 15.45% |
| 24 | Indiana | 7.00% | 9.84% | 5.05% | 14.89% |
| 25 | South Carolina | 7.25% | 9.52% | 5.05% | 14.57% |
| 26 | North Carolina | 7.75% | 9.43% | 5.05% | 14.48% |
| 27 | Minnesota | 7.71% | 9.38% | 5.05% | 14.43% |
| 28 | Mississippi | 7.00% | 9.08% | 5.05% | 14.13% |
| 29 | New Jersey | 7.00% | 8.87% | 5.05% | 13.92% |
| 30 | Georgia | 7.50% | 8.57% | 5.05% | 13.62% |
| 31 | Vermont | 6.50% | 8.50% | 5.05% | 13.55% |
| 32 | Wisconsin | 5.55% | 8.34% | 5.05% | 13.39% |
| 33 | New Hampshire | 0.00% | 8.18% | 5.05% | 13.23% |
| 34 | Ohio | 7.13% | 7.95% | 5.05% | 13.00% |
| 35 | Wyoming | 5.50% | 7.94% | 5.05% | 12.99% |
| 36 | Iowa | 6.50% | 7.91% | 5.05% | 12.96% |
| 37 | Massachusetts | 6.25% | 7.81% | 5.05% | 12.86% |
| 38 | Hawaii | 4.00% | 7.75% | 5.05% | 12.80% |
| 39 | Alabama | 7.25% | 7.45% | 5.05% | 12.50% |
| 40 | Michigan | 6.00% | 7.27% | 5.05% | 12.32% |
| 41 | Maine | 5.00% | 7.16% | 5.05% | 12.21% |
| 42 | Connecticut | 6.00% | 6.96% | 5.05% | 12.01% |
| 43 | Alaska | 2.50% | 6.69% | 5.05% | 11.74% |
| 44 | Virginia | 5.00% | 6.56% | 5.05% | 11.61% |
| 45 | Louisiana | 9.00% | 6.28% | 5.05% | 11.33% |
| 46 | Delaware | 0.00% | 6.25% | 5.05% | 11.30% |
| 47 | West Virginia | 6.00% | 6.23% | 5.05% | 11.28% |
| 48 | Montana | 0.00% | 6.03% | 5.05% | 11.08% |
| 49 | Idaho | 6.00% | 2.20% | 5.05% | 7.25% |
| 50 | Nevada | 7.91% | 2.08% | 5.05% | 7.13% |
| 51 | Oregon | 0.00% | 1.81% | 5.05% | 6.86% |
| U.S. Simple Average | 6.38% | 9.87% | 5.05% | 14.92% | |
| U.S. Weighted Average | 7.42% | 11.21% | 5.05% | 16.26% |
For flat monthly taxes and fees, average monthly bill is estimated at $48.16 per month per CTIA – The Wireless Association. Federal USF 7/1/2010 – 37.1 percent FCC “hold harmless” times contribution factor of 13.6 percent = 5.05 percent.
Source: Method from COST, “50-State Study and Report on Telecommunications Taxation,” May 2005. Updated July 2010 by Scott Mackey, KSE Partners, LLP using state statutes and regulations.
