PHOENIX - Personal finance magazine Kiplinger has named Arizona one of the most tax-friendly states in the country. It ranked eighth on the list.
The state ranked fifth in the 2016 report.
Kiplinger examined all 50 states and ranked each by income taxes, sales taxes, gas taxes, "sin" taxes (tobacco, alcohol) and other tax rules and exemptions. Kiplinger's sources were state tax departments, the American Petroleum Institute, the Tax Foundation, the American Hotel & Lodging Association and the Distilled Spirits Council of the United States.
Wyoming topped the list as this year’s most tax-friendly state. The first five entries on the list do not have a state income tax.
While Arizona has an income tax, the report says the rates are “notably low.” The state’s top income tax rate of 4.54 percent isn’t in effect until taxable income exceeds $152,668 for single filers or $305,336 for married couples.
The report also cited the state’s gas taxes as the country’s fourth-lowest at 19 cents per gallon.
State income tax: 2.59% (on taxable income less than $10,179/single, $20,357/joint) — 4.54% (on taxable income more than $152,668/single, $305,336/joint)
Effective income tax rate: 3.0%/individual, 3.3%/joint
Average state and local sales tax: 8.25%
Gas taxes and fees: 19 cents per gallon
A 2017 24/7 Wall St. analysis also ranked each state’s tax burden, the portion of income that goes to state and local government taxes. Though the results were similar, Arizona didn't earn a spot as one of the states with the lowest taxes on that list.
© 2017 KPNX-TV