Not only is your income taxed when you get paid, but usually two to three times after that as well. Case in point, your cell phone bill.
In 2015, Americans cell phone bills carried hefty taxes. Taxfoundation.org found that up to 18% of your cell phone is consists of taxes from local, state and federal entities.
Increases in federal, state, and local fees drove the national average wireless tax and fee burden to its highest level ever – nearly 18 percent of the average U.S. wireless customer’s bill. This is an increase of nearly one percentage point over 2014 levels and is almost two and one half times higher than the general sales tax rate imposed on most other taxable goods and services.
Here’s how the fifty states ranked. Indiana came in at #23
| Taxes, Fees, and Government Charges on Wireless Service, July 2015 | ||||
| 2015 Wireless State-Local Rate | 2015 Federal USF Rate | 2015 Combined Federal/State/Local Rate | ||
| 1 | Washington | 18.69% | 6.46% | 25.15% |
| 2 | Nebraska | 18.53% | 6.46% | 24.99% |
| 3 | New York | 17.90% | 6.46% | 24.36% |
| 4 | Illinois | 17.46% | 6.46% | 23.92% |
| 5 | Missouri | 14.79% | 6.46% | 21.25% |
| 6 | Rhode Island | 14.70% | 6.46% | 21.16% |
| 7 | Florida | 14.66% | 6.46% | 21.12% |
| 8 | Arkansas | 14.31% | 6.46% | 20.77% |
| 9 | Pennsylvania | 14.14% | 6.46% | 20.60% |
| 10 | Kansas | 13.53% | 6.46% | 19.99% |
| 11 | Puerto Rico | 13.45% | 6.46% | 19.91% |
| 12 | South Dakota | 13.14% | 6.46% | 19.60% |
| 13 | Utah | 12.77% | 6.46% | 19.23% |
| 14 | Alaska | 12.69% | 6.46% | 19.15% |
| 15 | Maryland | 12.67% | 6.46% | 19.13% |
| 16 | North Dakota | 12.27% | 6.46% | 18.73% |
| 17 | Tennessee | 11.99% | 6.46% | 18.45% |
| 18 | Arizona | 11.98% | 6.46% | 18.44% |
| 19 | DC | 11.63% | 6.46% | 18.09% |
| 20 | California | 11.60% | 6.46% | 18.06% |
| 21 | Texas | 11.53% | 6.46% | 17.99% |
| 22 | New Mexico | 11.22% | 6.46% | 17.68% |
| 23 | Indiana | 11.06% | 6.46% | 17.52% |
| 24 | Oklahoma | 10.88% | 6.46% | 17.34% |
| 25 | Colorado | 10.78% | 6.46% | 17.24% |
| 26 | South Carolina | 10.58% | 6.46% | 17.04% |
| 27 | Kentucky | 10.56% | 6.46% | 17.02% |
| 28 | Alabama | 9.75% | 6.46% | 16.21% |
| 29 | Minnesota | 9.54% | 6.46% | 16.00% |
| 30 | Georgia | 9.22% | 6.46% | 15.68% |
| 31 | Mississippi | 9.14% | 6.46% | 15.60% |
| 32 | Massachusetts | 8.93% | 6.46% | 15.39% |
| 33 | New Jersey | 8.93% | 6.46% | 15.39% |
| 34 | Iowa | 8.71% | 6.46% | 15.17% |
| 35 | North Carolina | 8.59% | 6.46% | 15.05% |
| 36 | Vermont | 8.50% | 6.46% | 14.96% |
| 37 | Ohio | 8.42% | 6.46% | 14.88% |
| 37 | Michigan | 8.28% | 6.46% | 14.74% |
| 39 | New Hampshire | 8.22% | 6.46% | 14.68% |
| 40 | Wyoming | 7.95% | 6.46% | 14.41% |
| 41 | Hawaii | 7.61% | 6.46% | 14.07% |
| 42 | Connecticut | 7.44% | 6.46% | 13.90% |
| 43 | Maine | 7.35% | 6.46% | 13.81% |
| 44 | Louisiana | 7.29% | 6.46% | 13.75% |
| 45 | Wisconsin | 7.17% | 6.46% | 13.63% |
| 46 | Virginia | 6.61% | 6.46% | 13.07% |
| 47 | West Virginia | 6.43% | 6.46% | 12.89% |
| 48 | Delaware | 6.29% | 6.46% | 12.75% |
| 49 | Montana | 6.11% | 6.46% | 12.57% |
| 50 | Idaho | 2.17% | 6.46% | 8.63% |
| 51 | Nevada | 1.95% | 6.46% | 8.41% |
| 52 | Oregon | 1.80% | 6.46% | 8.26% |
| Weighted Avg. | 11.50% | 6.46% | 17.96% | |
| Simple Avg. | 10.42% | 6.46% | 16.88% | |
| Source: Methodology from COST, “50-State Study and Report on Telecommunications Taxation,” May 2005. Updated July 2015 using state statutes, FCC data, and local ordinances. | ||||
Hoosier Econ 