State Taxes on the Rise


         States all over the US are raising taxes in a variety of ways. Here are some that might have the biggest effect. For example, in Louisiana, the state sales tax has gone up to 5%. This makes the average local sales tax in the entire state about 9.99%, the highest in the US. It has also been extended to items that were exempt from taxes, like Mardi Gras beads. However, as of now this rate hike is set to expire in mid-2018.

          Pennsylvania is continuing to apply its 6% sales tax to digital downloads and streaming services. In a decisive change, the state will now tax all Lottery winnings. Pennsylvania had been 1 of the 2 states that did not apply State Income Tax to Lottery winnings. California is now the only state that has that view.

          New Jersey has added 23 cents to its Gas Tax to pay for Public Works projects. Part of that budget plan also includes some tax reductions. For example, when it comes to retirement income, by the year 2020 up to $100,000 will be free from state taxes. In addition, the state’s Estate Tax will no longer exist by 2018. It’s never too early to see your Tax Professional to find out how these changes might affect you.

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