The number one thing people are doing with their tax refund. Elizabeth Keatinge has more. Buzz60
While the U.S. is one unified country, there are 50 different states within our union. And thanks to the 10th amendment, each state has the freedom to do many things according to the preferences of only its state legislature (voted on by that state’s citizens), as opposed to the nation at large.
For this reason, many of the taxes you pay are largely determined by your geographical location and consumption. Here are the 10 taxes that may vary depending on where you live within the U.S. (including Alaska and Hawaii, of course).
State income tax
Perhaps the most obvious tax on this list, your state of residency determines if and how you’re taxed (or not taxed) just for being a resident of that state. You may already know that many states do not ask residents to pay state tax, but this is usually made up in other forms, such as higher sales tax, utility tax, or property tax. State taxes usually fund everything from infrastructure (other than interstate highways) to state parks.
Local income tax
Only a small number of jurisdictions charge this tax to their citizens, and this number continues to decrease yearly as most city and county budgets are determined by the state.
As previously mentioned, some states have higher sales tax due to their lack of certain other taxes. For example, Nevada doesn’t charge income tax, but does charge over 6 percent sales tax. New Hampshire, on the other hand, is one state with no sales OR state income tax. (It does get pretty cold there, though.)