Local governments cannot levy an additional sales tax.
Common Exceptions at State Level:
Prescription Medicine: Exempt
Unprepared Foods: Exempt
Prepared Foods: 9%
Gasoline Tax: 70.90 cents/gallon (Includes all state, local, and federal taxes)
Diesel Fuel Tax: 84.40 cents/gallon (Includes all state, local, and federal taxes)
Personal Income Tax
Personal Income Tax Rate Range: 3.0%
Standard deduction: None
Personal Exemption Allowance: $1,000. Dependent Exemption: $1,000 (may be able to take an additional $1,500 for certain dependents. Age 65 and over or blind: $1,000)
Itemized Deductions Allowed?: Generally not allowed
State allows county- and city-level income tax.
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 except federal pensions for taxpayers 62 and older who may deduct $16,000 from Adjusted Gross Income less Social Security
Military Pay
Active Duty Pay: Exempt (includes Guard and Reserve pay, as well as USPHS and NOAA; source).
Military Retirement Pay: Exempt. Includes retired USPHS and NOAA officers.
Military Disability Pay: Exempt
VA Disability Dependency & Indemnity Compensation Benefits: Exempt
SBP/SSBP/RCSBP/RSFPP: Exempt
Income Tax Comment: Additional $1,500 exemption possible if AGI under $40,000.
Property Tax
Local municipalities average 0.74% of the property's assessed value.
Calculation of assessed value: 100% of fair market value.
Relief programs for:
Owner-Occupied: Credit of up to $300.
65 and Over: $150 credit if if meet income requirements.
65 and Over Freeze: Assessed value cannot increase more than 2% if meet income requirements.
Disabled Veterans/Surviving Spouses: Can exempt up to $38,960 of assessed value if has service-connected disability of at least 10% and served in war (World War I surviving spouse: full exemption).
Totally Disabled Veteran or Veteran 62 or Over With Non-Service-Connected Disability of 10% or More: Up to $14,000 can be exempt.
Blind/Disabled: Credit of $125.
Personal Property Tax: Yes. Rates and exemptions vary.
Premium and Life members can consult our financial staff for education and consumer advice.
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