Local governments can levy an additional sales tax of no more than 3.0%.
Current average sales tax (with local taxes included): 6.1%
Common Exceptions at State Level:
Prescription Medicine: Exempt
Gasoline Tax: 51.40 cents/gallon (Includes all state, local, and federal taxes)
Diesel Fuel Tax: 57.40 cents/gallon (Includes all state, local, and federal taxes)
Groceries are taxed, but a $155-per-person sales tax credit (or $250 if you submit receipts) is in place.
Personal Income Tax
Personal Income Tax Rate Range: Flat rate of 5.3% on income over $4, 673.
Standard deduction: Single Filing Status: $15,750.
Personal Exemption Allowance: N/A
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 with some exceptions
Military Pay
Active Duty Pay: Taxable to the extent included in federal income
Military Retirement Pay: An April 2025 law allows exemption of military retirement pay (and survivor benefit pay) if the recipient is classified as disabled, at least 62 years old at the end of the tax year, or was "employed during the tax year and received sufficient income from such employment to be required to file a federal return under section 6012(a)(1) of the Internal Revenue Code. The deduction is limited to the maximum Social Security benefit ($48,516 for individual filers at age 67 for 2025, $72,324 for married filing jointly).
Military Disability Pay: Exempt
VA Disability Dependency & Indemnity Compensation Benefits: Exempt
SBP/SSBP/RCSBP/RSFPP: See "Military Retirement Pay" above
Property Tax
Local municipalities average 0.49% of the property's assessed value.
Calculation of assessed value: 100% of fair market value
Relief programs for:
Owner-Occupied: Assessed value is lesser of 50% of fair market value or maximum of $125,000. Deferrals available.
65 and Over/Disabled/100% Disabled Vet/Blind/Widowed: Taxes may be reduced by up to $1,500 if meet income requirements.
Personal Property Tax: Yes.
Property Tax Comments: Tax deferral programs are in place if meet income requirements.
Premium and Life members can consult our financial staff for education and consumer advice.
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