How Widely Do Local Tax Rates Fluctuate In America?

Local tax rates do not exist in every community in the United States. The amount that residents of any local community pay in taxes varies from state to state, community to community. A sampling of these rates can give you some idea about how widely different local tax rates are.

What Makes Up Local Tax Rates

Local tax rates, which are comprised of income, sales, use or property taxes, are set in order to provide revenue for a local community. The amount of taxes raised serve as revenue necessary to pay for the repair of roads, the funding of schools and public health facilities and other services required by local residents. A municipal council, county board or other local taxing authority sets the local tax rate.

Example of Local Sales Rates

An example of how varied tax rates are by local jurisdiction, in the State of Texas, the states sales and use tax rate is 6.25 percent. The total combined state and local tax rate for the State of Texas cannot exceed 8.25 percent under state law. Looking at a handful of local taxing authorities, Alamo, Texas has a local tax rate of 2 percent, Pecan Gap, Texas has a 1 percent local rate, comprised of 1/2 percent for Delta County and 1/2 percent for Delta County Emergency Services District, and the rate for San Antonio, Texas is 1.125 percent.

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