Counties can levy an additional sales tax of no more than 2.5%.
Current average sales tax (with local taxes included): 7.3%
Common Exceptions at State Level:
Prescription Medicine: Exempt
Unprepared Foods: Exempt
Gasoline Tax: 56.90 cents/gallon (Includes all state, local, and federal taxes)
Diesel Fuel Tax: 71.40 cents/gallon (Includes all state, local, and federal taxes)
Personal Income Tax
Personal Income Tax Rate Range: 0% on income less than $26,050; 2.75% on income between $26,051 and $100,000; 3.5% on income over $100,000
Standard deduction: None
Personal Exemption Allowance: Income $40,000 or less: $2,400; $40,001-$80,000: $2,150; Over $80,000: $1,900
Dependent Exemption: $2,400
Itemized Deductions Allowed?: Yes, subject to limitations
Retirement Income
Social Security: Exempt
IRAs: Taxable at ordinary income tax rates to extent included in federal Adjusted Gross Income*
401Ks/Defined contribution employer retirement plans: Taxable at ordinary income tax rates to extent included in federal AGI*
Private pensions: Taxable at ordinary income tax rates to extent included in federal AGI*
Public Pensions: Taxable at ordinary income tax rates to extent included in federal AGI*
Military Pay
Active Duty Pay: Taxable to the extent included in federal AGI
Military Retirement Pay: Exempt
Military Disability Pay: Exempt
VA Disability Dependency & Indemnity Compensation Benefits: Exempt
SBP/SSBP/RCSBP/RSFPP: Exempt
*Retirement income of less than $100,000 may be eligible for tax credit of up to $200.
Income Tax Comments: The state allows municipalities to levy an income tax, but approval must be obtained by voters.
Property Tax
Local municipalities average 1.36% of the property's assessed value.
Calculation of assessed value: 35% of fair market value; reappraised every three years
Relief programs for:
Owner-Occupied: 2.5% tax reduction.
Limited Income and 65 and Over or Disabled: First $28,000 of appraised value exempt if meet income requirements.
Disabled Veterans/Surviving Spouses/Surviving Spouses of Public Service Officers: Up to $52,300 of appraised value exempt if 100% disabled. No income requirements.
Premium and Life members can consult our financial staff for education and consumer advice.
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