Sales Tax

  • Statewide: 5.5%
  • Counties cannot levy an additional sales tax.
  • Common Exceptions at State Level:
    • Prescription Medicine: Exempt
    • Unprepared Foods: Exempt
    • Prepared Foods: 8%
  • Gasoline Tax: 49.80 cents/gallon (Includes all state, local, and federal taxes)
  • Diesel Fuel Tax: 56.27 cents/gallon (Includes all state, local, and federal taxes)


Personal Income Tax

  • Personal Income Tax Rate Range: 5.8% ($0-$26,050)/6.75% ($26,051-$61,600)/7.15% (over $61,600). Brackets differ for joint filers. Download state tax forms for more info/table.
  • Standard deduction: Single Filing Status: $14,600. 
  • Personal Exemption Allowance: $5,000 (dependents structured as $300 tax credit). Subject to phase-out.
  • 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*
  • Military Pay
    • Active Duty Pay: Taxable to the extent included in federal Adjusted Gross Income
    • Military Retirement Pay: Exempt
    • Military Disability Pay: Exempt
    • VA Disability Dependency & Indemnity Compensation Benefits: Exempt
Income Tax Comments: *Exemptions of up to $35,000 of retirement income are available; must be reduced by Social Security benefits first.  


Property Tax

  • Local municipalities average 1.17% of the property's assessed value.
  • Calculation of assessed value: 100% of fair market value
  • Relief programs for:
    • Owner-Occupied: $25,000 of assessed value may be excluded.
    • Property Tax Fairness Credit: Credit of up to $1,000 ($1,500 if 65 and over) if meet income requirements.
    • 65 and Over: Freeze available if meet certain requirements.
    • Disabled Veterans (100% disability rating)/Veteran 62 or Over/Surviving Spouse: $6,000 of assessed value may be exempt.
    • Paraplegic Veteran: $50,000 of assessed value may be exempt if in specially adapted housing.
    • Deferrals and freeze programs available.
  • Personal Property Tax: Yes. Rates and exemptions vary.


Inheritance & Estate Taxes: Estates over $6.41 million (for decedents dying in 2023) may be taxed between 8% to 12%.


Department of Revenue website:

More Financial Guidance From MOAA 

Premium and Life members can consult our financial staff for education and consumer advice.


Looking to get more out of your membership? MOAA has more than 400 chapters around the country. Get involved in your community by finding the one closest to you and joining today!