Current average sales tax (with local taxes included): 8.1%
Common Exceptions at State Level:
Prescription Medicine: Exempt
Unprepared Foods: Exempt (several cities levy a sales tax on unprepared foods)
Gasoline Tax: 37.40 cents/gallon (Includes all state, local, and federal taxes)
Diesel Fuel Tax: 43.40 cents/gallon (Includes all state, local, and federal taxes)
Personal Income Tax
Personal Income Tax Rate Range: 2.5%
Standard deduction-single filing status: $15,000. A larger deduction may be available if filer made charitable contributions.
Personal Exemption Allowance: Over 65: $2,300/$100 credit for each dependent under 17; $25 if over 17. Phases out as income increases.
Itemized Deductions Allowed? Yes. Subject to limitations.
Retirement Income
Social Security: Exempt
IRAs: Taxable at ordinary income tax rates*.
401Ks/Defined contribution employer retirement plans: Taxable at ordinary income tax rates.*
Private pensions: Taxable at ordinary income tax rates.*
Public Pensions: Taxable at ordinary income tax rates.* Local government retirement plans exempt.
Military Pay
Active Duty Pay: Exempt
Military Retirement Pay: Exempt.
Military Disability Pay: Exempt
VA Disability Dependency & Indemnity Compensation Benefits: Exempt
SBP/SSBP/RCSBP/RSFPP: Exempt.
*Retirement income from public pension of up to $2,500 is tax-exempt. Standard deductions can be increased by 33% of the charitable donations if not itemizing.
Property Tax
Local municipalities average .52% of the property's assessed value.
Calculation of assessed value: 10% of limited property value, which limits increases in value to 5% per year or less.
Relief programs for:
Disabled/Surviving Spouses: Eligible for up to $4,748 or more exemption if meet assessed value and income requirements.
65 and Over: Can freeze valuation for three years if meet certain requirements.
Over 70: Can defer taxes if meet certain requirements.
Personal Property Tax: Yes. Rates and exemptions vary.
Premium and Life members can consult our financial staff for education and consumer advice.
Looking to get more out of your membership? MOAA has nearly 400 chapters around the country, along with several virtual chapters. Get involved by finding one and joining today!
