Cell Phone Tax Rates Are Highest Ever

Cell phones are crafty little tax machines for local, state and federal governments, now raking in their largest amount of taxes ever and posting sizable increases each year.

PC Mag cites a report by tax policy experts that found cell phone owners spend an average of more than 16 percent on taxes and fees for their devices, compared to 7.4 percent on other taxable goods. Worse, the cell phone tax rate grew three times faster than retail sales rates in last three years.

Federal fees such as the Universal Service Fund hit everyone, but state and local fees make things tougher for those in certain parts of the country. The report says customers in Nebraska, Washington and New York pay more than 20 percent of their bills in taxes and fees.

How much taxes do you pay on your cell phone bill?

Taxes on Cell Phones Hit All-Time High, 10 Best and Worst States [PC Mag via Slashdot]