6. Oklahoma
- Our rating for the Middle-Class: Not tax-friendly
- State sales tax: 4.5 percent state levy
- Income tax: The lowest rate is 0.5 percent (on up to $1,000 of taxable income for those who file as singles and up to $2,000 for those who file jointly as married couples); the highest rate is 5 percent (on taxable income over $7,200 for those who file as individuals and over $12,200 for married couples filing jointly).
- Property taxes: Oklahoman’s who are also homeowners face the median property tax rate ($869 per $100,000 of assessed home value)
In the Sooner State, localities can bring about as much as 7 percent when it comes to sales taxes, the average combined rate being 8.95 percent here. Oklahoman’s who rely on prescription drugs must be happy as the state imposes virtually no sale tax.
On the other hand, clothing and food are taxed at 4.5 percent, and the rate can go up when we turn our heads to local taxes. Motor vehicles are taxed as well (1.25 percent, plus a 3.25 percent excise tax).
5. Alabama
- Our rating for the Middle-Class: Tax-friendly
- State sales tax: 4 percent state levy
- Income tax: Between 2 percent (on up to $1,000 of taxable income for those who are married and file jointly and up to $500 for all others) and 5 percent (on more than $6,000 of taxable income for residents who are married filing jointly and more than $3,000 for all others).
- Property taxes: In the Yellowhammer State, the median property tax rate is $395 per $100,000 of assessed home value and this is actually the lowest rate found on this list.
When it comes to income taxes, some municipalities can also bring about occupational taxes on wages and salaries.
According to the Tax Foundation, localities are entitled to add as much as 7.5 percent when referring to sales taxes, this means that the average combined rate is actually 9.22 percent. While prescription drugs are fully exempt, clothing and food are fully taxable.
Motor vehicles see a 2 percent reduction, but some extra local taxes may appear, so you probably won’t feel any difference.
