Local governments can levy sales tax of no more than 1.0%.
Current average sales tax (with local taxes included): 6.3%
Common Exceptions at State Level:
Prescription and Over-the Counter Medicine: Exempt
Unprepared Foods: Exempt
Prepared Foods: 9%
Clothing: Exempt
Gasoline Tax: 50.08 cents/gallon (Includes all state, local, and federal taxes)
Diesel Fuel Tax: 57.40 cents/gallon (Includes all state, local, and federal taxes)
Personal Income Tax
Personal Income Tax Rate Range: Four brackets from 3.35% to 8.75% (on income greater than $249,700; married filing jointly $304,000)
Standard deduction: Single filing status: $7,650 (Married filing jointly: $15,355). Also receive additional $1,250 for each standard deduction checked on Federal Form 1040, such as for the disabled or seniors.
Personal Exemption Allowance: Single and dependents: $5,100
Itemized Deductions Allowed?: Yes, subject to limitations.
Retirement Income
Social Security: Full exemption if federal Adjusted Gross Income less than $55,000 (less than $70,000 for joint filers); partial between $55,001 and $64,999 ($70,001 to $79,999 for joint filers); no exemption over $65,000 ($80,000 for joint filers).
401Ks/Defined contribution employer retirement plans: Taxable at ordinary income tax rates*
Private pensions: Taxable at ordinary income tax rates to the extent included in federal income*
Public Pensions: First $10,000 exempt if meet income requirements.*
Military Pay
Active Duty Pay: Exempt. National Guard and reservist pay is exempt up to $2,000 if income less than $50,000.
Military Retirement Pay: Fully exempt for those with a federal Adjusted Gross Income of $125,000 or less. Partial exemption for AGI between $125,000 and $175,000 (Source: S. 51). Per state tax guidance, USPHS/NOAA commissioned corps retirement pay included as "military retirement pay."
Military Disability Pay: Exempt
VA Disability Dependency & Indemnity Compensation Benefits: Exempt
SBP/SSBP/RCSBP/RSFPP: First $10,000 exempt if meet income requirements. Benefit fully exempted for those with a federal AGI of $125,000 or less. Partial exemption for $125,000-$175,000 AGI (Source: S. 51)
*Seniors and disabled taxpayers may be eligible to deduct a portion of the Federal Elderly and Permanently Disabled Tax Credit on their state return.
Property Tax
Local municipalities average 1.59% of the property's assessed value.
Calculation of assessed value: Varies by county.
Relief programs for:
Owner-Occupied: Up to $8,000 credit of your statewide education property tax if meet income requirements. Can apply to renters.
Disabled Veterans/Surviving Spouses/Children: Reduction of up to $40,000 (minimum of $10,000) of assessed value available if 50% or more service-connected disability. Other circumstances may apply.
Personal Property Tax: Yes. Rates and exemptions vary.
Inheritance & Estate Taxes: Estates over $5 million are taxed at a flat rate of 16% if the individual died after Dec. 31, 2015. There is no inheritance tax.
Premium and Life members can consult our financial staff for education and consumer advice.
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