States taxing diapers
States taxing diapers
Diapers are an essential need for families with infants and young children. However, it may come as a surprise that most states in the United States still impose sales tax on diapers, adding an extra financial burden to parents. The amount of money spent on taxes for diapers can really add up, increasing the overall cost of raising a child. Let’s take a closer look at which states still tax diapers and how much families can expect to pay in taxes.
Localities may still tax diapers: While some states have eliminated the sales tax on diapers, it’s important to note that localities such as counties and cities may still charge a sales tax on diapers. In states without a statewide sales tax, diapers may still be taxed at the local level. For example, residents of Alaska don’t have to pay a statewide sales tax, but they are still subject to local taxes. Similarly, in Virginia, all residents pay local sales taxes on diapers.
Alabama: Average combined tax rate: 9.237% Estimated tax on diapers per year: $83.13 Alabama taxes diapers at one of the highest rates in the country. Although the average combined state and local sales tax rate is below 10%, it can reach 11% in some areas. This means that families in the highest taxed parts of Alabama can expect to pay an estimated yearly diaper tax of $103.05.
Arizona: Average combined tax rate: 8.371% Estimated tax on diapers per year: $75.34 There have been several proposals to eliminate the sales tax on diapers and baby formula in Arizona over the past five years, but so far, these efforts have been unsuccessful. Arizona is also one of the 21 states that still imposes a “pink tax” on feminine hygiene products.
Arkansas: Average combined tax rate: 9.237% Estimated tax on diapers per year: $83.13 Diapers are only tax-exempt in Arkansas during the state’s annual sales tax holiday. Otherwise, consumers pay an average tax rate of 9.237% on diapers, which is one of the highest in the country.
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- Georgia Tax Guide
Georgia: Average combined tax rate: 7.394% Estimated tax on diapers per year: $66.55 Efforts to eliminate diaper taxes in Georgia failed this year, but lawmakers who support the exemption plan to try again in 2024. For now, diapers are taxed at a minimum of 4% (the statewide tax rate), but sales tax rates can reach up to 9% in some parts of Georgia.
Hawaii: Average combined tax rate: 4.443% Estimated tax on diapers per year: $39.88 Hawaii still taxes diapers, although the estimated yearly tax expense of $39.88 is lower than any other state on this list. It’s important to note that Hawaii’s average combined sales tax rate of 4.443% is classified as a general excise tax (GET) rather than a sales tax. This means that tax is included in the sales price of diapers.
These are just a few examples of states that still tax diapers. It’s evident that the tax rates and exemptions vary widely across the country, impacting the financial burden on families. While some states have taken steps to exempt diapers from sales tax, many have yet to do so.
It’s worth mentioning that diapers are not the only essential items subject to taxation in some states. For instance, groceries and feminine hygiene products are still subject to sales tax in some states. The tax policies on essential items like these can disproportionately affect families, especially those on lower incomes.
With the cost of raising a child already high, some families may find it challenging to afford the additional expense of sales tax on diapers. Advocacy groups and lawmakers continue to push for exemptions to alleviate the financial burden on families. Efforts to eliminate the diaper tax have been made in several states, although not all have been successful.
In conclusion, the taxation of diapers varies across states, with some states exempting diapers from sales tax, while others impose high tax rates. Families who reside in states with high diaper taxes may face increased financial pressure. It’s an issue that continues to be debated, with the goal of providing financial relief to parents who rely on diapers for their children’s well-being.
