Current average sales tax (with local taxes included): 6.2%
Common Exceptions at State Level:
Prescription and Over-the Counter Medicine: Exempt
Unprepared Foods: Exempt
Prepared Foods: 9%
Clothing: Exempt
Gasoline Tax: 51.02 cents/gallon (Includes all state, local, and federal taxes)
Diesel Fuel Tax: 56.40 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 $242,000; married filing jointly $294,650)
Standard deduction: Single Filing Status: $7,000. Also receive additional $1,050 for each standard deduction checked on Federal Form 1040. May be entitled to additional exemptions if blind or disabled.
Personal Exemption Allowance: Single, married filing jointly, and dependents: $4,850
Itemized Deductions Allowed?: Yes, subject to limitations.
Retirement Income
Social Security: Full exemption if federal Adjusted Gross Income less than $50,000 (less than $65,000 for joint filers); partial between $50,001 and $54,999 ($60,001 to $69,999 for joint filers); no exemption over $55,000 ($70,00 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: $10,000 exemption for residents with gross income of $50,000 or less, or $65,000 or less for those married and filing jointly. Exemption is phased out over the next $10,000 in additional retirement income.
Military Disability Pay: Exempt
VA Disability Dependency & Indemnity Compensation Benefits: Exempt
SBP/SSBP/RCSBP/RSFPP: First $10,000 exempt if meet income requirements
Income Tax Comments: *Taxpayers who have a federal AGI greater than $150,000 must pay greater of state income tax or 3% of federal AGI. Seniors and disabled taxpayers may be eligible for up to 24% of the Federal Elderly and Permanently Disabled Tax Credit.
Property Tax
Local municipalities average 1.78% of the property's assessed value.
Calculation of assessed value: 100% of fair market value.
Relief programs for:
Owner-Occupied: Up to $8,000 credit if income is less than $128,000.
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 $5.0 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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