Counties can levy an additional sales tax of no more than 1.0%
Current average sales tax (with local taxes included): 6.25%
Common Exceptions at State Level:
Prescription Medicine: Exempt
Unprepared Foods: Exempt
Gasoline Tax: 54.10 cents/gallon (Includes all state, local, and federal taxes)
Diesel Fuel Tax: 60.10 cents/gallon (Includes all state, local, and federal taxes)
Personal Income Tax
Personal Income Tax Rate Range: Five brackets from 2.36% to 5.12% (on income over $60,000)
Standard deduction: None
Personal Exemption Allowance: $2,000. Dependent Exemption: $2,000
Itemized Deductions Allowed?: Yes, subject to limitations.
Retirement Income
Social Security: Exempt
401Ks/Defined contribution employer retirement plans: Taxable at ordinary income rates*
Private pensions: Taxable at ordinary income tax rates*
Public Pensions: Up to $2,000 exempt on in-state or federal pensions; remainder is taxable at ordinary income tax rates.* Police, sheriff, and firefighter pensions exempt.
Military Pay
Active Duty Pay: National Guard and reservist pay is exempt.
Military Retirement Pay: Exempt
Military Disability Pay: Exempt
VA Dependency & Indemnity Compensation Benefits: Exempt
SBP/SSBP/RCSBP/RSFPP: Exempt
Income tax comments: *Exemption of income of up to $8,000 may be available if 65 and over or 100% disabled. Some municipalities charge payroll, income, or interest and dividend taxes.
Property Tax
Local municipalities average 0.59% of the property's assessed value.
Calculation of assessed value: 60% of fair market value
Relief programs for:
65 and Over or Disabled: Reduction of up to $20,000 of assessed value is available if meet certain income requirements. Deferral programs also available.
Low-Income: If property tax is over 4% of income, may receive credit for amount over 4%. Maximum credit is $1,000.
Personal Property Tax: Yes. Rates and exemptions vary.
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!
