States Where Taxes Are Going Up

You'll pay extra for gas, cigarettes and more if you live in one of these places.

Some states still face tight budgets after years of recession and slow recovery. Increasingly, they are turning to tax hikes to make up for the shortfalls. If you live in one of these states, the taxes will hit you in different places — at the pump, in the store, or on your tax return.

In Connecticut, sales of clothing and shoes under $50 are no longer exempt from the state’s 6.35% sales tax, and sales of yachts and other luxury items will now be taxed at 7.75%, up from 7%. High-income residents will be hit hardest by the tax changes, as the state added two new top income tax brackets and increased the highest rate to 6.9%.

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Miles Kruppa
Intern, Kiplinger's Personal Finance
Kruppa is an intern at Kiplinger's Personal Finance through the American Society of Magazine Editors 2015 summer internship program. He is a senior at Rice University majoring in economics and English, and he was editor in chief for the Rice Thresher as a junior. He previously interned at a small investment bank in Austin, Texas, that serves middle market companies.