Counties can levy sales tax of no more than 6.125%.
Current average sales tax (with local taxes included): 8.003%
Common Exceptions at State Level:
Prescription Medicine: Exempt
Unprepared Foods: Exempt*
Gasoline Tax: 37.40 cents/gallon (Includes all state, local, and federal taxes)
Diesel Fuel Tax: 51.40 cents/gallon (Includes all state, local, and federal taxes)
*Sales Tax Comments: Several cities levy a sales tax on unprepared foods.
Personal Income Tax
Personal Income Tax Rate Range: 4 brackets from 2.59% to 4.5% (on more than $166,843). Beginning in 2023, a flat tax of 2.5% applies.
Standard deduction: Single filing Status: $12,950/Married Filing Jointly: $25,900. A larger deduction may be available if filer made charitable contributions.
Personal Exemption Allowance: $100 credit for each dependent under 17; $25 if over 17. Phases out as income increases.
Itemized Deductions Allowed? Yes. Subject to limitations.
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.*
Active Duty Pay: Exempt
Military Retirement Pay: Exempt.
Military Disability Pay: Exempt
VA Disability Dependency & Indemnity Compensation Benefits: Exempt
* Income tax comments: Retirement income of up to $2,500 is tax-exempt. Standard deductions can be increased by 25% of the charitable donations if not itemizing. Proposition 208 created a surcharge of 3.5% (included in tax rates above) on income over $250,000. It is currently being litigated.
Local municipalities average .66% 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 $3,000 or more exemption if meet assessed value and income requirements.
Renters or homeowners: Eligible for tax credit based on income.
Over 70: Can defer taxes if meet certain requirements.
65 and over: Can freeze valuation for three years if meet certain requirements. Renters or single homeowners eligible for tax credit of up to $502 based on income.
Personal Property Tax: Yes. Rates and exemptions vary.