Current average sales tax (with local taxes included): 8.02%
Common Exceptions at State Level:
Prescription Medicine: Exempt
Unprepared Foods: Exempt*
Gasoline Tax: 37.40 cents/gallon (Includes all state, local, and federal taxes)
Diesel Fuel Tax: 43.40 cents/gallon (Includes all state, local, and federal taxes)
*Sales Tax Comments: Several cities levy a sales tax on unprepared foods.
Personal Income Tax
Personal Income Tax Rate Range: 2.5%
Standard deduction-single filing status: $14,600. A larger deduction may be available if filer made charitable contributions.
Personal Exemption Allowance: Over 65: $2,300/$100 credit for each dependent under 17; $25 if over 17. Phases out as income increases.
Itemized Deductions Allowed? Yes. Subject to limitations.
Retirement Income
Social Security: Exempt
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: Taxable at ordinary income tax rates.* Local government retirement plans exempt.
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: Exempt.
* Income tax comments: Retirement income from public pension of up to $2,500 is tax-exempt. Standard deductions can be increased by 27% of the charitable donations if not itemizing.
Property Tax
Local municipalities average .56% of the property's assessed value.
Calculation of assessed value: 10% of limited property value, which limits increases in value to 5% per year or less.
Relief programs for:
Disabled/Surviving Spouses: Eligible for up to $4,375 or more exemption if meet assessed value and income requirements.
65 and over/Renters or Single Homeowners: Eligible for tax credit of up to $502 based on income. 65 and over can freeze valuation for three years if meet certain requirements.
Over 70: Can defer taxes if meet certain requirements.
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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