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How are your taxes calculated in US?


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Taxes are common for every state or city you live in, all over the United States and if you do not pay them on time, you are likely to get in trouble. What many people don’t realize is that the amount of taxes owed actually varies from state to state and even from town to town. The reason for this is the fact that for tax calculations each state considers different factors and follows different laws.

What are some unique tax laws for the different US cities?

Although most of the taxes are rather trivial – you owe tax for your pet, vehicle and property, there are some that seem more or less strange, here are some of them:

· In the state of Colorado, some food packaging is not considered essential and therefore it’s eligible for taxation. For example, if you go to any fast food chain and order your favorite drink – its cup is considered essential, but the closing lid is not, so it will be taxed with 2.9%!

· In the state of Indian, you will owe sales taxes if you decide to get custom made Halloween costume. However, if you decide to get a pre-made one, you will not owe extra taxes.

· In Kansas taxes are applied to "any place providing amusement, entertainment or recreation services." Although, taxes can’t be imposed to airlines and airport passengers, the state’s department decided to apply sales taxes only to hot air balloon rides.

· In Kentucky candy not containing flour is imposed with taxes, while products containing it are exempt.

· In New York you will owe sales taxes if you decide to visit a haunted house! Think this is weird – you owe taxes for prepared bagels, but the ones you cook yourself are tax free!

· Fine Texas clothing is also eligible for extra sales taxes. For example, you can buy nice leather belt is tax free, but if you purchase a belt buckle you will be charged with sales tax.

· In Wisconsin ice cream cakes are subject of sales taxes, if the ice cream is mixed with another food item by the retailer. If you made the ice cream cake yourself or by anyone else than the retailer, you might not have to pay taxes unless it can be considered a prepared food.

· Since the 1960s businesses offering their customers the opportunity to dance in the state of Washington are subject to sales taxes!

· If you are more than 100 years old in the state of New Mexico you are able to receive tax-exempt. Why? Because for 100 years you have paid enough taxes according to the state’s laws.

· Some Virginia and Maryland residents need to pay taxes for flushing their toilets!

· Business owners in Utah, employing nude or partially nude workers need to pay 10$ sales tax.

· If you are resident of the state of Arkansas and you have tattoos, you will be required to pay 6% sales tax.

Besides these rather weird and unique tax laws for every state, there are many other things you need to know when it comes to calculating the amount of taxes you owe. You can learn more from this beautiful infographic titled – The Geography of Taxation!



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