Nebraska is renowned for its huge agricultural lands, welcoming residents, and affordable way of life. However, the state might not be as fiscally responsible as people believe when it comes to taxation. In a recent study by WalletHub, Nebraska’s tax burden placed it in 26th place out of the 50 states. Accordingly, Nebraskans pay an average of $4,595 in local and state taxes per person.
Nebraska’s history with specific taxes is unsteady. The state has comparatively modest income tax rates, with a top rate that is lower than many other states at 6.84%. The high amount of property taxes in Nebraska, however, can be a burden for homeowners. Nebraska’s property tax rates are ranked 12th in the nation by the Tax Foundation. Despite several exclusions for specific goods and services, the state’s 5.5% sales tax rate is nevertheless somewhat high.
Moving on to related concerns, Iowa has a comparatively high cigarette tax when compared to other states. In Iowa, the tax on cigarettes is $1.36 a pack as of 2021, which is more expensive than the national average. Other tobacco products, such cigars and smokeless tobacco, are subject to a hefty tax as well.
The answer to the question of whether candy is taxable in Nebraska is both yes and no. Candy containing flour is categorized as a food item by the Nebraska Department of Revenue and is therefore exempt from sales tax. Candy that doesn’t contain flour, however, is categorized as a “prepared food” and is charged sales tax. Moving on to Florida, it is true that the state’s sales tax is 7%. Local sales taxes, on the other hand, can increase the overall tax rate in some places to as much as 8.5%. The reason Florida doesn’t have a state income tax is due to its robust tourism sector. Florida is one of the most well-liked tourist destinations in the world, and the state legislature decided against using income tax in favor of tourism-related taxes like sales tax and lodging taxes.
In conclusion, Nebraska is not necessarily a low tax state either, even though it may not have the highest tax burden in the nation. When examining their overall cost of living, residents should be aware of the state’s high property tax rate and comparatively high sales tax rate. You may also want to be aware of the high cigarette tax rates if you live in one of the surrounding states, like Iowa. Finally, although Florida relies on tourism-related taxes rather than income tax, confectionery in Nebraska is taxed based on its ingredients.