Counties can levy an additional sales tax of no more than 3.0%.
Current average sales tax (with local taxes included): 6.08%
Common Exceptions at State Level:
Prescription Medicine: Exempt
Gasoline Tax: 51.40 cents/gallon (Includes all state, local, and federal taxes)
Diesel Fuel Tax: 57.40 cents/gallon (Includes all state, local, and federal taxes)
Groceries are taxed, but a $100-per-person sales tax credit (seniors get $120) is in place.
Personal Income Tax
Personal Income Tax Rate Range: Flat rate of 5.8% on income over $2,500.
Standard deduction: Single Filing Status: $14,600.
Personal Exemption Allowance: N/A
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*
Military Pay
Active Duty Pay: Taxable to the extent included in federal income
Military Retirement Pay: Taxable at ordinary income tax rates*
Military Disability Pay: Exempt
VA Disability Dependency & Indemnity Compensation Benefits: Exempt
SBP/SSBP/RCSBP/RSFPP: Taxable at ordinary income tax rates*
Income tax comments: *$43,524 of retirement income ($65,286 for joint filers) may be exempt if 65 or over (or 62 or over and disabled) but must be reduced by any Social Security benefits.
Property Tax
Local municipalities average .56% of the property's assessed value.
Calculation of assessed value: 100% of fair market value
Relief programs for:
Owner-Occupied: Assessed value is lesser of 50% of fair market value or maximum of $125,000.
65 and Over/Disabled/Disabled Vet: Taxes may be reduced by up to $1,500 if income less than $37,000 after deducting medical expenses. Deferrals available.
Personal Property Tax: Yes.
Property Tax Comments: Tax deferral programs are in place if meet income requirements.
Premium and Life members can consult our financial staff for education and consumer advice.
Looking to get more out of your membership? MOAA has more than 400 chapters around the country. Get involved in your community by finding the one closest to you and joining today!
