Statewide: 4.3% (plus 1% mandated local sales tax)
Counties can levy an additional sales tax of no more than 2.7%
Current average sales tax (with local taxes included): 5.63%
Common Exceptions at State Level:
Prescription and Over-the-Counter Medicine: Exempt
Unprepared Foods: None, but mandated local tax of 1%
Prepared Foods: 5%
Vehicle Tax: 4.15% or $75, whichever is greater.
Gasoline Tax: 52.80 cents/gallon (Includes all state, local, and federal taxes)
Diesel Fuel Tax: 59.70 cents/gallon (Includes all state, local, and federal taxes)
Personal Income Tax
Personal Income Tax Rate Range: Four brackets from 2.0% to 5.75% (on income greater than $17,000)
Standard deduction: Single Filing Status: $8,000. Married Filing Jointly: $16,000
Personal Exemption Allowance: $930. Dependent Exemption: $930
Itemized Deductions Allowed?: Yes, subject to limitations.
Social Security: Exempt
401Ks/Defined contribution employer retirement plans: Taxable at ordinary income tax rates*
Private pensions: Taxable at ordinary income tax rates*
Public Pensions: Up to $15,000 may be exempt if income is less than $15,000.*
Active Duty Pay: Up to $15,000 may be exempt if income less than $30,000. Some National Guard and reservist pay, up to $3,000, may also be exempt.
Military Retirement Pay: State budget passed in September 2023 exempts the first $20,000 in military retirement income in the 2023 tax year. This number will jump to $30,000 in 2024 and $40,000 in 2025 and beyond. Exempt if Medal of Honor recipient.
Military Disability Pay: Exempt
VA Disability Dependency & Indemnity Compensation Benefits: Exempt
SBP/SSBP/RCSBP/RSFPP: See "Military Retirement Pay," above.
Income Tax Comments: If born before Jan. 2, 1939, up to $12,000 of income is exempt. If born after Jan. 2, 1939, up to $12,000 is exempt if federal Adjusted Gross Income is less than $62,000 ($87,000 if married filing jointly).
Local municipalities average .82% of the property's assessed value.
Calculation of assessed value: 100% of fair market value
Relief programs for:
65 and Over: Up to 100% exemption available based on income.
Disabled Veterans/Surviving Spouses: 100% tax-exempt if 100% service-connected disability and property 1 acre or less.
Personal Property Tax: Yes. Rates and exemptions vary.