Counties can levy an additional sales tax of no more than 4.2%
Current average sales tax (with local taxes included): 6.903%
Common Exceptions at State Level:
Unprepared Foods: 3%
Gasoline Tax: 49.81 cents/gallon (Includes all state, local, and federal taxes)
Diesel Fuel Tax: 55.81 cents/gallon (Includes all state, local, and federal taxes)
Cigarette Tax: $1.70/pack of 20
Personal Income Tax
Personal Income Tax Rate: 4.95%
Standard deduction: 6% of the federal standard or itemized deduction amount
Personal Exemption Allowance: Dependents: $590, subject to phase-out.
Itemized Deductions Allowed?: Yes, subject to limitations.
Social Security: Taxable to the extent included in federal Adjusted Gross Income. A new credit equal to 4.95% of Social Security benefits included in federal AGI. Phase-out begins at $30,000 for single filers and $50,000 for joint.*
IRAs: Taxable at ordinary income tax rates*
401Ks/Defined contribution employer retirement plans: Taxable at ordinary income rates*
Private pensions: Taxable at ordinary income tax rates*
Public Pensions: Taxable at ordinary income rates*
Active Duty Pay: Taxable at ordinary income tax rates
Military Retirement Pay: Exempt as of 2021 tax year, per Senate Bill 11 (signed into law March 11, 2021)
Military Disability Pay: Exempt
VA Dependency & Indemnity Compensation Benefits: Exempt
SBP/SSBP/RCSBP/RSFPP: Survivor benefits exempt as of 2021 tax year, per Senate Bill 11 (signed into law March 11, 2021)
Income Tax Comments: *Retirement income credit of $450 available if 65 and over, but phase-outs apply. Cannot claim both the $450 credit and new Social Security credit.
Local municipalities average .63% of the property's assessed value.
Calculation of assessed value: Fair market value
Relief programs for:
Owner-Occupied: Exemption of 45% of assessed value available.
Over 66: If income less than $34,666, up to $1,067 tax credit; valuation reduction equal to tax on 20% of full market value available. Renters' program available.
Disabled Veterans (at least 10%)/Unmarried Surviving Spouse: Exemption up to $275,699 of assessed value based on percentage of service-linked disability.
Indigent and 65 or over: Tax credit and deferral programs available.
Active Duty Armed Forces Property Tax Exemption: 100% exemption if outside state for certain period of time.