There’s nothing we like better than celebrating Fourth of July. Fireworks, hot dogs, and of course, taxes.
Several states are making it expensive to celebrate the Fourth of July. To be fair, this isn’t a new thing. There are eight states which impose an excise tax on the sale and purchase of fireworks, according to the Tax Foundation:
- Alabama (8%)
- Alaska (2%)
- Georgia (5%)
- Indiana (5%)
- Michigan (6%)
- Texas (2%)
- Pennsylvania (12%)
- West Virginia (12%)
West Virginia and Pennsylvania’s 12% is the highest by far, according to the Tax Foundation report. Pennsylvania’s tax is a new addition this year and it remains to be seen if it will put a damper on the celebration.
In addition, there are several other states in he nation where fireworks are illegal but they are not taxed per se. Most states which sell fireworks impose some form of licensing fee on the retailer for the right to sell them. This rate can range from a few dollars to several thousand.
For example, Nebraska imposes a $25 licensing fee for the sale of fireworks. in New Jersey? It’s $6,000. This is determine at the state level which accounts for the huge disparity from state to state.
Who knew celebrating the Fourth of July could be so taxing!
It’s All About Location
Few people are going to move out of Pennsylvania because of a tax on Fourth of July fireworks. However, living in an area where new taxes are a way of life can be, well, taxing.
Cost of living varies around the country, from state to state and city to city. That’s why City vs City uses real, local data to calculate cost of living expenses. We examine all state and local taxes as well as housing costs and more.
If you’re thinking of moving, whether for Fourth of July or otherwise, download City vs City first and start comparing your costs!