Colorado
Our ranking: Tax-friendly
State income tax: Flat 4.63%
Average state and local sales taxes: 7.52%
Gas taxes and fees: 22 cents per gallon
The Centennial State has a flat tax: If you have federal taxable income, the rate is 4.63%. Property taxes are quite low, but sales taxes take a bite. Colorado has a legal cannabis market; the taxes on marijuana include a 15% excise tax, a 15% “retail marijuana sales tax,” plus regular state and local sales taxes.
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