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Counties can levy an additional sales tax of no more than 2.75%.
Current average sales tax (with local taxes included): 6.97%
Common Exceptions at State Level:
Prescription Medicine: Exempt
Unprepared Foods: Exempt at the state level, but most counties levy a tax of 2%
Electricity: 7%
Gasoline Tax: 57.15 cents/gallon (Includes all state, local and federal taxes)
Diesel Fuel Tax: 63.15 cents/gallon (Includes all state, local and federal taxes)
Some counties level an additional .5% transit tax. Motor vehicles are exempt from sales tax but pay a 3% highway use tax at time of purchase.
Personal Income Tax
Personal Income Tax Rate: 4.99%
Standard deduction: Single Filing Status: $12,750. Married Filing Jointly: $25,500
Personal Exemption Allowance: None
Itemized Deductions Allowed?: Yes, if itemized on federal return. Differ from federal itemized deductions and 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 include in federal Adjusted Gross Income
Military Retirement Pay: Exempt if servicemember served 20 years or was medically retired. Includes USPHS and NOAA Commissioned Corps retirees.
Military Disability Pay: Exempt
VA Disability Dependency & Indemnity Compensation Benefits: Exempt
SBP/SSBP/RCSBP/RSFPP: Exempt if servicemember served 20 years or was medically retired. Retroactive to 2021.
Income tax comments: *May be excluded from taxation if had five years active duty before Aug. 12, 1989. (Bailey settlement agreement)
Property Tax
Local municipalities average .84% of the property's assessed value.
Calculation of assessed value: 100% of fair market value; reappraised at least every eight years.
Relief programs for:
65 and over or Disabled: Excludes greater of first $25,000 or 50% of appraised value. Income cannot exceed $31,900.
Disabled or Surviving Spouse (if not remarried): Excludes up to $45,000 of appraised value if 100% service-connected disability; no income requirements.
Circuit Break Property Tax Deferment: If 65 or disabled and low income, annual tax is limited to 4% or 5% of income up to $47,850, though taxes over limit are only deferred.
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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