We have good news and bad news for you today…

The good news is that talking on your wireless phone costs 80% less than it did 10 years ago. The bad news is that taxes on wireless services have soared to over 20% of a total wireless bill in some states. This tax rate is up to four times higher than for goods and services - even for alcohol and cigarettes!

Just how high are wireless taxes, fees and surcharges? We did a little research and came up with a top 10 states that carry the highest state, local and federal wireless tax burden for its consumers.

Having a wireless phone in these states can be certainly be hazardous to your wealth…

State-Local Total
Nebraska 18.35% 22.54%
Washington 16.43% 20.62%
Florida 16.23% 20.42%
New York 15.96% 20.13%
Missouri 15.73% 19.92%
Rhode Island 14.52% 18.71%
Texas 14.27% 18.46%
Pennsylvania 13.50% 17.69%
Illinois 12.75% 16.94%
California 12.67% 16.86%

Source: Scott Mackey (Partner: Kimbell, Sherman, Ellis)
* Note: As of October 2006, the FCC adjusted the safe harbor assumption from 28.5% to 37.1%. On a quarterly basis, the FCC adopts adjusted contribution factors. Thus, the above reflects the effective federal USF contribution rate as of July 1, 2007.