This aritcle from USA Today exposes Alabama, California and New Jersey as the only three states that tax health savings accounts (HSA). HSAs are exempt from federal taxes.
The number of changes states have made to sales tax has decreased for the fourth year in a row according to Vetex’s 2012 Sales Tax Report. Average state sales tax stayed at 5.488% from 2011 to 2012. States with the highest sales tax of 7% are Indiana, Mississippi, New Jersey, Rhode Island, and Tennessee.
In order of highest to lowest: