State Tax Rankings

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.