Counties cannot levy an additional sales tax of more than 2.75%
Current average sales tax (with local taxes included): 6.01%.
Common Exceptions at State Level:
Prescription Medicine: Exempt
Unprepared Foods: Exempt
Gasoline Tax: 48.54 cents/gallon (Includes all state, local, and federal taxes)
Diesel Fuel Tax: 41.50 cents/gallon (Includes all state, local, and federal taxes)
Personal Income Tax
Personal Income Tax Rate: 4.0%
Standard deduction, Single Filing Status: $3,160
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: Exempt.
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: *Retirement pay is exempt if taxpayer retired in 1997 or before. After 1997, $31,110 of retirement and annuity is exempt. Additional exclusions may be available. State allows county- and city-level income tax.
Property Tax
Local municipalities average .85% of the property's assessed value.
Calculation of assessed value: 100% of fair market value; inspected no less than every four years
Relief programs for:
65 and Over or Disabled Veteran: $46,350 of assessed value may be exempt
Personal Property Tax: Yes. Rates and exemptions vary.
Inheritance & Estate Taxes: There is an inheritance tax of up to 16%, but most family members are exempt. There is no estate tax.
Premium and Life members can consult our financial staff for education and consumer advice.
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