Local governments cannot levy an additional sales tax.
Common Exceptions at State Level:
Prescription Medicine: Exempt
Unprepared Foods: Exempt
Residential heating fuel and electricity: 4%
Gasoline Tax: 66.20 cents/gallon (Includes all state, local, and federal taxes)
Diesel Fuel Tax: 72.20 cents/gallon (Includes all state, local, and federal taxes)
Personal Income Tax
Personal Income Tax Rate Range: 4.25%.
Standard deduction: $20,000 if 67 or older.
Personal Exemption Allowance: $5,900. Dependent Exemption: $5,900. Disabled: $5,900, plus additional $500 if a veteran.
Itemized Deductions Allowed? No
Retirement Income
Social Security: Exempt
IRAs: Exempt up to $67,610
401Ks/Defined contribution employer retirement plans: Exempt up to $67,610
Private pensions: Exempt up to $67,610
Public Pensions: Exempt up to $67,610
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
*There are special rules for individuals born after 1952 and are 67 or older.
Income Tax Comments: State allows county- and city-level income tax.
Property Tax
Statewide property tax: $6 per $1,000 of assessed value
Local municipalities average 1.25% of the property's assessed value.
Calculation of assessed value: 100% of fair market value
Relief programs for:
Owner-Occupied: Property tax credit of up to $1,900 if meet income and property value requirements. Cannot increase more than 5% or the Consumer Price Index per year, whichever is lower. Exemptions of school taxes available.
Disabled Veterans/Surviving Spouses: 100% tax credit available if 100% service-connected disability.
62 or Older and Disabled/Blind: May defer summer taxes if income is less than $40,000. Winter tax deferral available if 65 or older.
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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