Most and Least Taxing States 2013

In the wake of the 2012 election, there are 35 state governments where a single party fully controls both the executive and legislative branches. That means taxpayers can expect volatility as Republicans and Democrats seek to make their mark on state tax codes, says Steven Roll, a state tax analyst with Bloomberg BNA.

Is your state one of 14 that taxes Social Security income? Or are you in one of only two states to levy both an estate tax and inheritance tax? See how your state stacks up on income tax, sales tax, property tax, estate tax, inheritance tax and more.

Methodology
Property tax statistics are derived from a Tax Foundation analysis of fiscal year 2010 U.S. Census data. If no income tax, sales tax, estate tax or inheritance tax is noted, it's because it is not levied in that state. Seven states have no income tax. Sixteen states and Washington, D.C., have estate taxes, and eight states have inheritance taxes (that includes Tennessee's inheritance tax, which the Tax Foundation notes functions as an estate tax).

The following states are listed by highest and lowest top income tax rates. See the full list here.

10 States with the Highest Top Income Tax Rates:

1. California
Top income tax rate: 13.3%
Sales tax: 7.5%
Property tax per capita: $1,450

Only time will tell whether the rich will pack their bags for less taxing states. In the meantime, they have a new top income tax rate of 13.3 percent, the highest in the nation. A recently raised sales tax is among the country's highest, and gas taxes are the nation’s second-highest, according to the American Petroleum Institute. A legislature controlled by Democrats may prove friendly to Democratic Governor Jerry Brown’s vision for high-speed rail, education financing, jobs, health care and water supply projects.

California posts the names of the largest state income tax debtors. As of April 15, the largest income tax debt is $10.8 million owed by CNET founder Halsey Minor. That number doesn't reflect about $2.5 million in payments and another $600,000 in tax reductions from filing 2010 returns, according to Minor.

2. Hawaii
Top income tax rate: 11%
Sales tax: 4%
Property tax per capita: $1,028
Estate tax: 0.8% to 16% with $5.25 million exemption

Hawaii has the second-highest income tax rate in the country. In 2010, Hawaii reinstated its estate tax for those who died after April 30, 2010. The state is one of seven that impose the full sales tax rate on groceries, according to Bloomberg BNA. Still, Hawaii's combined state and local sales tax rate of 4.35 percent places it near the bottom of the pack.

3. Oregon
Top income tax rate: 9.9%
Property tax per capita: $1,292
Estate tax: 0.8% to 16% with a $1 million exemption

At 9.9 percent for top filers, Oregon's income tax is one of the highest in the country, behind Hawaii's and California's. The top rate affects more filers than it did last year (singles with income over $125,000, and married couples with income greater than $250,000) because Oregon eliminated its old 11 percent top bracket starting in 2013. Shoppers still enjoy not paying state or local sales tax, though.

4. Iowa
Top income tax rate: 8.98%
Sales tax: 6%
Property tax per capita: $1,367
Inheritance tax: See note*

The top bracket of Iowa's state income tax reaches 8.98 percent at $67,230 in 2013, a relatively low threshold compared with those in other states. The state's tax on Social Security income will be phased out in 2014, according to Bloomberg BNA. If you want to raise a toast in celebration, it'll cost you: Iowa has one of the highest excise tax rates on table wine and spirits, according to the Tax Foundation and the Distilled Spirits Council of the United States. Iowa has a budget surplus and state policymakers are clashing over whether to credit that surplus back to taxpayers or cut taxes elsewhere.

*Spouse, lineal-ascendant and lineal-descendant transfer is tax-free; sibling or child-in-law transfer is taxed at 5 percent to 10 percent; all other transfers are taxed at 10 percent to 15 percent.

5. New Jersey
Top income tax rate: 8.97%
Sales tax: 7%
Property tax per capita: $2,819
Inheritance tax: See note*
Estate tax: 0.8% to 16% with a $675,000 exemption

New Jersey residents have been rebuilding after Hurricane Sandy, but federal spending cuts from Congress’s sequestration could block as much as $2.5 billion in relief for the region affected by the storm. However, the state treasury can expect a marked increase in sales tax revenue starting July 1, when Amazon will start collecting sales tax on purchases by New Jersey customers. Residents who place bets at home, at work or anywhere else with an Internet connection could add more than $200 million to the state’s coffers, thanks to New Jersey’s new online gambling law.

*Transfer to a spouse, domestic partner, lineal descendant or charitable organization is tax-free; transfer to children-in-law is taxed at 11 percent to 16 percent; all other transfers are taxed at 15 percent to 16 percent.