Local governments can levy an additional sales tax of no more than 5.375%.
Current average sales tax (with local taxes included): 8.2%
Common Exceptions at State Level:
Prescription Medicine: Exempt
Unprepared Foods: 1.0%
Gasoline Tax: 43.37 cents/gallon (Includes all state, local, and federal taxes)
Diesel Fuel Tax: 49.37 cents/gallon (Includes all state, local, and federal taxes)
Personal Income Tax
Personal Income Tax Rate: 4.7%
Standard deduction: Single Filing Status: $20,100.
Personal Exemption Allowance: N/A
Itemized Deductions Allowed? Yes, subject to limitations
Retirement Income
Social Security: Fully exempt for taxpayers 62 or older
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: Exempt up to $449,824
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: Qualified for public pension exemption.
*Income Tax Comments: National Guard inactive duty and annual training pay (and Reserve pay) exempt. State allows a county- and city-level income tax. Federal income tax deductible (limited to $5,000). Individuals with income less than $25,000 ($32,000 if married filing jointly) may qualify for a $6,000 exemption on retirement income.
Property Tax
Local municipalities average 0.85% of the property's assessed value.
Calculation of assessed value: 19% of fair market value
Relief programs for:
65 and Over/Disabled/Over 60 and Receiving Survivor Benefits: May be entitled to up to $1,550 credit ($1,055 for renters) if meet income requirements and taxes due. Freezes available.
Disabled and former POW Veterans: Exemptions equal to disability rating (max credit: $1,550)
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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