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Taxes in Alabama to Iowa

Taxes by State

Please choose a State: AlabamaAlaskaArizonaArkansasCaliforniaColorado,
ConnecticutDelawareDistrict of ColumbiaFloridaGeorgia, HawaiiIdahoIllinoisIndianaIowa

ALABAMA

Sales Taxes

State Sales Tax: 4% (prescription drugs exempt); The rate can go as high as 12.0% depending on city and county taxes.  The state administers over 200 different city and county sales taxes; however, it does not administer all county or city sales taxes.  There is a 3% tax on food sold through vending machines; 2% on sales of motor vehicles, mobile homes and motorboats; and 4% on sales of tangible personal property.s
Gasoline Tax: 39.3 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 46.3 cents/gallon (Includes all taxes)
Cigarette Tax: 42.5 cents/pack of 20

Personal Income Taxes

Tax Rate Range: Low – 2.0%; High – 5.0%
Income Brackets: *Lowest – $500; Highest – $3,000
Number of Brackets: 3
Personal Exemptions: Single – $1,500; Married – $3,000; Dependents – $1,500
Standard Deduction: Single – $2,000; Married filing joint return – up to $7,500 based on state AGI and filing status.
Medical/Dental Deduction: Limited to excess of 4% of adjusted gross income.  However, you may deduct 50 percent of the premiums you pay for health insurance if you work for an employer that has less than 25 employees.
Federal Income Tax Deduction: Full
Retirement Income Taxes: Social Security, military, civil service, state/local government and qualified private pensions are exempt.  All out-of-state government pensions are tax-exempt if they are defined benefit plans.
Retired Military Pay: Pay and survivor benefits not taxed.
Military Disability Retired Pay: Retirees who entered the military before Sept. 24, 1975, and members receiving disability retirements based on combat injuries or who could receive disability payments from the VA are covered by laws giving disability broad exemption from federal income tax. Most military retired pay based on service-related disabilities also is free from federal income tax, but there is no guarantee of total protection.
VA Disability Dependency and Indemnity Compensation: VA benefits are not taxable because they generally are for disabilities and are not subject to federal or state taxes.
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Property Taxes

The state does not collect taxes on personal property such as boats and computers.   Each city and county may levy its own millage rate.  For information on all ad valorem tax exemptions, click here.

Homeowners 65 and older are exempt from all state property taxes.  Some cities also assess separate property taxes.  A homestead exemption up to $5,000 of assessed value is granted by the state on real property taxes. A larger exemption is available to persons over 65. Visit state’s property tax division web site.  To view the state’s homestead summary chart, click here.

Taxpayers are allowed to take a deduction on their individual returns for amounts contributed to a catastrophic (hurricanes, floods and storms) savings account.  If the qualified deductible is $1,000 or less, the maximum contribution is $2,000.  If the qualified deductible is more than $1,000, the maximum contribution is the smaller of (a) $15,000 or (b) twice the qualified deductible.

Inheritance and Estate Taxes

Alabama does not impose a separate state estate or inheritance tax.  It has what is known as a “pickup” or “sponge” tax, which means the state collects the maximum credit allowed on the federal estate tax return for “state death taxes.”

For further information, visit the Alabama Department of Revenue site or call 334-242-1512 or 256-837-2319.  If you are thinking about retiring to Alabama, click here.
* For joint returns, the taxes are twice the tax imposed on half the income.

ALASKA

Sales Taxes

State Sales Tax: The state currently does not have a sales and use tax.  However, 62 municipalities impose local sales taxes that range up to 7.5%.  Typical sales tax rates are from 2% – 5%.
Gasoline Tax: 30.8 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 32.4 cents/gallon (Includes all taxes)
Cigarette Tax: $2.00/pack of 20 (Anchorage – add $3.45)

Personal Income Taxes

No state income tax
Retirement Income: Not taxed.

Property Taxes

Alaska is the only state in the United States where a large part of the land mass is not subject to a property tax.  Although property tax is the primary method of raising revenues for most of the larger municipalities in the state, smaller municipalities favor a sales tax.  This is due primarily to the fact that the smaller incorporated areas lack a tax base large enough to support the property tax.  The unincorporated areas of the state do not have the legal authority to levy a tax.  Of the 18 Boroughs, only 14 levy a property tax.  Only 11 Cities located outside of Boroughs levy a property tax.  Therefore, only 25 municipalities in Alaska (either cities or boroughs) levy a property tax.  These 25 municipalities can be found on the Directory of Taxing Jurisdictions.

Alaska taxes both real and personal property.  There are several municipalities that have chosen to exempt some or all categories of personal property.  For a listing of those municipalities and categories, see the Alaska Taxable information.   Homeowners 65 and older (or surviving spouses 60 and older) are exempt from municipal taxes on the first $150,000 of the assessed value of their property.  This also applies to disabled veterans.  The average assessed value exempted from taxes for senior citizens and disabled veterans is $134,520 which equated to a tax exemption of $1,839 for 2010.  In 2010, the total full value for all municipalities (over 750 in population) was $98.1 billion (including TAPS — Trans-Alaska Pipeline).  With a statewide population of 692,314 the per capita full value was $141,644. Intangible personal property is exempt from taxation. Call 907-269-6620 (Anchorage) or 907-465-2320 (Juneau) for details.

Inheritance and Estate Taxes

There is no inheritance tax and the estate tax is limited to federal estate tax collection.

For further information, visit the Alaska Department of Revenue site or call 907-465-2300.

ARIZONA

Sales Taxes

State Sales Tax: Arizona Transaction Privilege Tax (sales) and Use tax rates generally are 6.6%.  Currently, all fifteen counties levy a tax.  County rates range from .5% to 1.125%.  The state rate on transient lodging (hotel/motel) is 5.5%.  The state of Arizona does not levy a state tax on food for home consumption or on drugs prescribed by a licensed physician or dentist.  However, some cities in Arizona do levy a tax on food for home consumption.  City rates range from 1% to 4.25%.  The combined sales tax rates for some localities exceeds 13.7%.
Gasoline Tax: 37.4 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 51.4 cents/gallon (Includes all taxes)
Cigarette Tax: $2.00/pack of 20
Water Use Tax: 65 cents per 1,000 gallons of water used.

Personal Income Taxes

Tax Rate Range: Low – 2.59%; High – 4.54%
Income Brackets: * Lowest – $10,000; Highest – $150,001
Number of Brackets: 5
Personal Exemptions: Single – $2,100; Married – $4,200 with no
dependents, $6,300 with one dependent; Dependents – $2,300; 65 years or older – $2,100
Standard Deduction Single: - $4,833; Married filing jointly – $9,665
Medical/Dental Deduction: Allows deductions for all qualified medical and dental expenses.
Federal Income Tax Deduction: None
Retirement Income Taxes: Social Security and Railroad Retirement benefits are exempt.  Up to $2,500 total of military, civil service, and Arizona state/local government pensions are also exempt.  All out-of-state government pensions are fully taxed.  Frequently asked tax questions
Retired Military Pay: Up to $2,500 of retired pay and/or survivor benefits excluded.  For information on veteran’s services, click here.
Military Disability Retired Pay: Retirees who entered the military before Sept. 24, 1975, and members receiving disability retirements based on combat injuries or who could receive disability payments from the VA are covered by laws giving disability broad exemption from federal income tax. Most military retired pay based on service-related disabilities also is free from federal income tax, but there is no guarantee of total protection.
VA Disability Dependency and Indemnity Compensation: VA benefits are not taxable because they generally are for disabilities and are not subject to federal or state taxes.
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Property Taxes

There is no state property tax.  Tax jurisdictions set tax rates, which may vary considerable from one area to another. Property tax is administered by county assessors.  Single homeowners 65 and older who earn less than $3,750 and married couples who earn less than $5,500 are eligible for a tax credit of up to $502.  With the exception of centrally valued properties such as airlines, railroads, and mines, property tax in Arizona is assessed and administered in each individual county by the county assessor.  For a list of links to county websites click here.

Persons at least 65 years old who have resided in their primary residence for at least two years and have total income not more than four times the Social Security supplemental security income (SSI) benefit rate may apply to the assessor by September 1 to have the valuation of the primary residents and up to 10 acres of adjoining undeveloped land frozen at the full cash value when the application is filed.

Arizona also taxes personal property, which is defined as all types of property except real estate.  Taxable personal property includes property used for commercial, industrial and agricultural purposes.  Personal property is considered to be movable and not permanently attached to real estate.  For details, click here.

A personal property manual is available which contains information regarding the identification and valuation of locally assessed personal property, taxpayer reporting requirements, valuation tables, and descriptions of the methods of making value adjustments that are used in the assessment of many kinds of personal property.  The manual describes a wide variety of personal property items, including information on the identification and valuation of mobile home and manufactured housing units.  An explanation of the personal property appeal process (which differs in some respects from the real property appeal process) is also included.  For details, click here.

In lieu of a personal property tax on automobiles, the state imposes an annual motor vehicle license tax.  There is a $4.00 title fee; an $8.00 registration fee; plus an air quality research fee of $1.50; and a vehicle license tax (VLT) assessed in place of a personal property tax charged by other states.  There may also be a weight fee and commercial registration fee, if the vehicle is registered as commercial.  The VLT is based on an assessed value of 60% of the manufacturer’s base retail price reduced by 16.25% for each year since the vehicle was first registered in Arizona (15% before 8/1/98).  Then, as of the Dec. 1, 2000 reduction, the rate is calculated as $2.80 (new vehicles)/$2.98 (used vehicles) for each $100 of the assessed value.  For example, for a new vehicle that costs $25,000, the first year assessed value would be $15,000 and the VLT would be $420.00.  The second year the assessed value would be $12,562.50 and the VLT would be $363.06.  For a mobile home the title fee is $7.00 per section or unit. Call 800-251-5866 for details.  For information on property tax relief for seniors, click here.

Inheritance and Estate Taxes

There is no inheritance or gift tax and the estate tax does not apply to decedents whose date of death is on or after January 1, 2006.

For further information, visit the Arizona Department of Revenue site.  For questions about moving to Arizona, click here. For other tax questions, call 602-255-3381.
* For joint returns, the taxes are twice the tax imposed on half the income.

ARKANSAS

Sales Taxes

State Sales Taxes: 6.50% (prescription drugs exempt).  Food taxed at 2%, city and county sales taxes could add another 5.5%.  To view local rates, click here.
Gasoline Tax: 40.02 cents/gallon (Includes all taxes)
Diesel Fuel Tax 47.2 cents/gallon (Includes all taxes)
Cigarette Tax: $1.15 cents/pack of 20

Personal Income Taxes

Tax Rate Range:  Low – 1.0%; High – 7.0% *
Income Brackets:  Lowest – $4,099; Highest – $34,000
Number of Brackets: 6
Tax Credits: Single – $23; Married – $46; Dependents – $23
Additional deduction if 65 years of age or older – $23
Standard Deduction: Single – $2,000; Married filing jointly – $4,000
Medical/Dental Deduction: Same as Federal taxes
Federal Income Tax Deduction: None
Retirement Income Taxes: Social Security is exempt, as are VA benefits, Workers’ Compensation, Tier 1 and Tier 2 Railroad Retirement benefits, and unemployment compensation.  Up to $6,000 in military, civil service, state/local government, and private pensions are exempt.  The exemption refers to income from public or private retirement systems, plans or programs.  IRA distributions can be included as part of the $6,000 exemption if the taxpayer is 59½ or older.  Out-of-state government pensions also qualify for the exemption.  Taxpayers who receive an IRA distribution after reaching age 59-1/2 do not have to pay taxes on the first $6,000 from the account.  Other exemptions include active duty military personnel ($9,000), retired military personnel, and life insurance proceeds.
Retired Military Pay: Up to $6,000 of federal retirement pay and/or survivor benefits excluded.
Military Disability Retired Pay: Retirees who entered the military before Sept. 24, 1975, and members receiving disability retirements based on combat injuries or who could receive disability payments from the VA are covered by laws giving disability broad exemption from federal income tax. Most military retired pay based on service-related disabilities also is free from federal income tax, but there is no guarantee of total protection.
VA Disability Dependency and Indemnity Compensation: VA benefits are not taxable because they generally are for disabilities and are not subject to federal or state taxes.
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Property Taxes

Arkansas property taxes are levied by counties, municipalities, and school districts.  All households are eligible for a homestead tax credit of up to $350 regardless of income or age.  Political subdivisions collect taxes on real property (house and land) and personal property (motor vehicles, boats and motors, motorcycles and all-terrain vehicles).  Assessment is based on 20 percent of the true market value.  The taxable assessed value of homesteads will not increase more than 5% above the previous taxable assessed value except when new additions or substantial improvements are made to the property.  However, the taxable value of the homestead will continue to increase each year until it equals 20% of market value.  The taxable assessed value of homesteads of residents aged 65 or older, or those who are disabled are capped at the previous year value unless improvements are made or the property is sold.  For more information about real property taxes, click here and here.

In certain cases, disabled veterans are exempt from all state taxes on real and personal property.  This tax exemption also is available to widow or widowers who do not remarry, as well as to dependent minor children of military personnel who were killed in action, died of service-related disabilities or who are missing in action.  For additional information, go to http://www.veterans.arkansas.gov/

Inheritance and Estate Taxes

There is no inheritance tax.  In 2003 the estate tax was repealed for those deceased after January 1, 2005.

For further information, visit the Arkansas Department of Finance and Administration site or call 501-682-7751.  For general tax information, click here.  For a booklet on moving to Arkansas, click here.
* A special tax table is available for low- income taxpayers reducing their tax payments.

CALIFORNIA

Sales Taxes

State Sales Tax: California’s state-only sales tax is 6.50 percent.  There is a statewide county tax of 1%, and therefore, the lowest rate anywhere in California is 7.5%. This rate will apply until December 31, 2016.  Rates will be higher in cities and counties with special taxing districts – between 1.0 percent and 3.5 percent.  Publication 71 lists combined sales tax rates for California cities and counties.  (Food and prescription drugs are exempt.)
Gasoline Tax: * 71.6 cents/gallon (Includes all taxes)
Diesel Fuel Tax: * 76.1 cents/gallon (Includes all taxes)
Cigarette Tax: 87 cents/pack of 20

Personal Income Taxes

Tax Rate Range:  Low – 1.0%; High - 13.3%.
Income Brackets: ** Lowest – $7,455; Highest – $1,000,000
Number of Brackets:  9
Personal Exemptions: Single – $102; Married – $208
Tax Credits:  Single - $99; Married – $198; Dependents – $315; 65 years of age or older – $99
Standard Deduction:  Single – $3,841; Married filing jointly – $7,682
Medical/Dental Deduction: Same as Federal taxes
Federal Income Tax Deduction: None
Retirement Income Taxes: Social Security and Railroad Retirement benefits are exempt.  There is a 2.5% tax on early distributions and qualified pensions.  All private, local, state and federal pensions are fully taxed.
Retired Military Pay: Follows federal tax rules.
Military Disability Retired Pay: Retirees who entered the military before Sept. 24, 1975, and members receiving disability retirements based on combat injuries or who could receive disability payments from the VA are covered by laws giving disability broad exemption from federal income tax. Most military retired pay based on service-related disabilities also is free from federal income tax, but there is no guarantee of total protection.
VA Disability Dependency and Indemnity Compensation: VA benefits are not taxable because they generally are for disabilities and are not subject to federal or state taxes.
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Property Taxes

Property is assessed at 100% of full cash value.  The maximum amount of tax on real estate is limited to 1% of the full cash value.  Under the homestead program, the first $7,000 of the full value of a homeowner’s dwelling is exempt.  The Franchise Tax Board’s Homeowner Assistance program, which provided property tax relief to persons who were blind, disabled, or at least 62 years old, and met certain minimum annual income thresholds, has been halted.  The state budgets approved for the 2008/2009 and 2009/2010 fiscal years deleted funding for this Homeowner and Renter Assistance Program that once provided cash reimbursement of a portion of the property taxes that residents paid on their home.  For more information, call the Franchise Tax Board at 1-800-852-5711, or visit.

The California constitution provides a $7,000 reduction in the taxable value for a qualifying owner-occupied home.  The home must have been the principal place of residence of the owner on the lien date, January 1st.  To claim the exemption, the homeowner must make a one-time filing of a simple form with the county assessor where the property is located.  The claim form, BOE-266,Claim for Homeowners’ Property Tax Exemption, is available from the county assessor.  For more information on the property tax program click here.

Inheritance and Estate Taxes

There is no inheritance tax.  However, there is a limited California estate tax related to federal estate tax collection.

For further information, visit the California Franchise Tax Board or the California State Board of Equalization.
* Does not include 1 cent local option.
** For joint returns, the taxes are twice the tax imposed on half the income.

COLORADO

Sales Taxes

State Sales Tax: 2.9% (food and prescription drugs exempt); many cities and counties have their own rates which are added to the state rate.  Total could be as high as 9.9%.
Gasoline Tax: 40.4 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 44.9 cents/gallon (Includes all taxes)
Cigarette Tax: 84 cents/pack of 20

Personal Income Taxes

All taxpayers: 4.63% of Federal taxable income
Personal Exemptions/Credits: Federal amounts are automatically adopted.
Standard Deduction: None
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: None
Retirement Income Taxes: Colorado has a pension/annuity subtraction where, depending on the age of the recipient, the first $20,000/$24,000 is not taxed.  As a result, taxpayers 55-64 years old can exclude a total of $20,000 for Social Security and qualified retirement income.  Those 65 and over can exclude up to $24,000.  All out-of-state government pensions qualify for the pension exemption.  The total exclusion may not be more than indicated from all exempt sources.  However, Social Security/Railroad Retirement income not taxed by the federal government is not added back to adjusted gross income for state income tax purposes.
Retired Military Pay: Same as above.
Military Disability Retired Pay: Retirees who entered the military before Sept. 24, 1975, and members receiving disability retirements based on combat injuries or who could receive disability payments from the VA are covered by laws giving disability broad exemption from federal income tax. Most military retired pay based on service-related disabilities also is free from federal income tax, but there is no guarantee of total protection.
VA Disability Dependency and Indemnity Compensation: VA benefits are not taxable because they generally are for disabilities and are not subject to federal or state taxes.
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.  For information on the Military Spouses Residency Relief Act, click here.

Property Taxes

The county assessor determines the value of property using a market, cost or income approach.  For 2013 property taxes on real estate are assessed at 7.96% of the property’s actual value.  You can determine your property tax bill by multiplying the assessed value by the local tax rate.  Other property, including personal property is assessed at 29% of actual value.

A homestead exemption is available for qualifying seniors and the surviving spouse of a senior who previously qualified.  Seniors must be at least age 65.  It allows 50% (up to a maximum reduction of $200,000) in actual value of a primary residence to be exempt.  The state pays the tax on the exempted value.  The person must have owned and lived in the home for at least 10 years.  Click for details.  This exemption has now been extended to qualifying disabled veterans.  Click for details.

Full-year Colorado residents age 65 or older, disabled, or a surviving spouse age 58 or older, may qualify for the Property Tax/Rent/Heat Rebate and/or the Property Tax Deferral.  Qualified applicants can receive a rebate of up to $600 of the property tax and $192 of their heating expenses paid during the year, either directly or as part of their rent payments. Click for details.

For more property tax information, click here and click here.  For senior and veteran property tax programs, click here.

Inheritance and Estate Taxes

There is no inheritance tax and the Colorado estate tax does not apply to decedents whose date of death is on or after January 1, 2005.

For further information, visit the Colorado Department of Revenue site or call 303-866-2371.

CONNECTICUT

Sales Taxes

State Sales Tax: 6.35% (food, prescription & non-prescription drugs exempt).
Gasoline Tax: 67.7 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 79.3 cents/gallon (Includes all taxes)
Cigarette Tax: $3.40/pack of 20.

Personal Income Taxes

Tax Rate Range: Low – 3.0%; High – 6.7%
Income Brackets: * Lowest – First $10,000; Highest – Over $250,001  (Click here to estimate your tax)
Number of Brackets: 6
Personal Exemptions: **Single – $13,500; Married – $27,000; Dependents – $0  (Click for details)
Standard Deduction: None
Medical/Dental Deduction: None
Federal Income Tax Deduction: None
Retirement Income Taxes: Social Security is exempt for individual taxpayers with federal adjusted gross income of less than $50,000 and for married filing jointly taxpayers, with federal AGI below $60,000.  All out-of-state government and federal civil service pensions are fully taxed.  Tax information for seniors (click here).
Retired Military Pay: Connecticut exempts 50% of federally taxable military retirement pay from the state income tax.  The exemption applies to federal retirement pay to members of the U.S. Army, Navy, Air Force, Marines, Coast Guard, and Army and Air National Guard.  Benefits received by a beneficiary under an option or election made by a retired member are also covered by this law.
Military Disability Retired Pay: Retirees who entered the military before Sept. 24, 1975, and members receiving disability retirements based on combat injuries or who could receive disability payments from the VA are covered by laws giving disability broad exemption from federal income tax. Most military retired pay based on service-related disabilities also is free from federal income tax, but there is no guarantee of total protection.
VA Disability Dependency and Indemnity Compensation: VA benefits are not taxable because they generally are for disabilities and are not subject to federal or state taxes.
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Property Taxes

Taxes and real and personal property are assessed and collected by individual towns or other taxing districts.   All assessments are at 70% of fair market value.  An annual property tax credit or rent rebate is available to residents, age 65 or older, or to a surviving spouse of a previously approved applicant who is age 50 or older.  Regardless of age, totally disabled persons are also eligible.  Income parameters apply.

Municipalities may provide additional tax relief for seniors. Call 800-286-2214 or 860-297-5962 for details.

Inheritance and Estate Taxes

Connecticut imposes an estate tax which taxes the transfer of estates valued at $2.0 million or more at a progressive rate starting with 7.2 percent of the first $100,000 over the threshold and rising to 12 percent for the amount above $10.1 million. This is applicable to estates of decedents dying on or after January 1, 2011.  Additional information can be found at http://www.ct.gov/drs/cwp/

For further information, visit the Connecticut Department of Revenue site.  Also click here for more details.

* For joint returns, the taxes are twice the tax imposed on half the income.

DELAWARE

Sales Taxes

State Sales Tax: None  Delaware does not impose a state or local sales tax, but does impose a Gross Receipts Tax on the seller of goods (tangible or otherwise) or provider of services in the state.  Business and occupational gross receipts tax rates range from 0.1037% to 2.0736%, depending on the business activity.
Gasoline Tax: 41.4 cents/gallon (Includes all taxes)
Diesel Fuel Tax: Tax 46.4 cents/gallon (Includes all taxes)
Cigarette Tax: $1.60 cents/pack of 20

Personal Income Taxes

Tax Rate Range: Low – 2.2%; High – 6.75%
Income Brackets:   Lowest – $5,000; Highest – $60,000
Number of Brackets: 6
Tax Credits:   Single – $110; Married – $220; Dependents – $110; Over 60 – take an additional $110
Standard Deduction: $3,250 if single and not itemizing; $6,500 if married filing jointly and not itemizing.
Medical/Dental Deduction: None
Federal Income Tax Deduction: None
Retirement Income Taxes: Social Security and Railroad Retirement benefits are exempt.  Taxpayers 60 and older can exclude $12,500 of investment and qualified pension income.  They may qualify for an additional tax credit of $110. Out-of-state government pensions qualify for the pension and retirement exemption.  Under age 60, $2,000 is exempt. If you are 65 or older on December 31, you are eligible for an additional standard deduction of $2,500 (if you do not itemize).  For more information on tax rates and exemptions, click here.
Retired Military Pay:  Up to $2,000 of military retirement pay excluded for individuals under age 60; $12,500 if 60 or older.
Military Disability Retired Pay: Retirees who entered the military before Sept. 24, 1975, and members receiving disability retirements based on combat injuries or who could receive disability payments from the VA are covered by laws giving disability broad exemption from federal income tax. Most military retired pay based on service-related disabilities also is free from federal income tax, but there is no guarantee of total protection.
VA Disability Dependency and Indemnity Compensation: VA benefits are not taxable because they generally are for disabilities and are not subject to federal or state taxes.
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Property Taxes

All real property in the state is subject to tax unless specifically exempt.  Personal property, tangible and intangible property is exempt. Real estate is subject to county, school district, vocational school district and municipal property taxes.  The state offers various property tax relief programs for residents age 65 and older and for residents with disabilities. Homeowners 65 and older can get a credit equal to half of the school property taxes, up to $500. For information on the senior school property tax credit, click here. For property tax rates, click here.

Inheritance and Estate Taxes

Delaware brought back its state estate tax effective for deaths occurring between July 1, 2009 and July 1, 2013.

For further information, visit the Delaware Division of Revenue site or call 302-577-8200.

DISTRICT OF COLUMBIA

Sales Taxes

State Sales Tax:  5.75% (temporary increase from 5.75% for the period from October 1, 2009 to September 30, 2012) (food, prescription and non-prescription drugs, residential utility services exempt)
Gasoline Tax: 47.2 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 47.9 cents/gallon (Includes all taxes)
Cigarette Tax: $2.50/pack of 20

Personal Income Tax
Tax Rate Range: Low – 4.0%; High – 8.95% (of the excess over $350,000)
Income Brackets:   Lowest – $10,000; Highest – $350,000  Note: Excludes Social Security income and maximum $3,000 exclusion on military retired pay, pension income, or annuity income from DC or federal government.
Number of Brackets: 4
Personal Exemption:   Single – $1,675; Married – $3,350; Dependents – $1,675
Standard Deduction: Single – $2,000; Married filing joint return – $4,000
Medical/Dental Deduction: Same as Federal taxes
Federal Income Tax Deduction: None
Retirement Income Taxes: Social Security is exempt.  Taxpayers 62 and older can exclude $3,000 of military, federal, and state/local pensions.  All state government pensions are fully taxed.
Retired Military Pay: Up to $3,000 of military retirement pay excluded for individuals 62 or older, Survivor benefits are taxable.
Military Disability Retired Pay: Retirees who entered the military before Sept. 24, 1975, and members receiving disability retirements based on combat injuries or who could receive disability payments from the VA are covered by laws giving disability broad exemption from federal income tax. Most military retired pay based on service-related disabilities also is free from federal income tax, but there is no guarantee of total protection.
VA Disability Dependency and Indemnity Compensation: VA benefits are not taxable because they generally are for disabilities and are not subject to federal or state taxes.
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Property Taxes

Property is assessed at 100% of market value.  Taxes on owner-occupied real estate are $0.85 per $100 of assessed value.  The first $67,500 of assessed value (homestead deduction) is exempt from taxes. Several property tax relief programs are available to assist property owners and first time home buyers.  These include a homestead deduction, tax credits for historic properties, senior citizen tax relief and property tax exemptions and deferrals. Homeowners 65 and older with household adjusted gross income of less than $100,000 receive an additional exemption equal to 50 percent of their homestead deduction. Click here for details.

The real property tax deduction has increased.  As a result of changes made to Federal year law, non-itemizers (those who take the standard deduction) may now increase the standard deduction by up to $500 (if single, head of household, married filing separately) and up to $1,000 (if filing jointly) if they took the real property tax deduction on their Federal tax return as an increase to the standard deduction. Tangible personal property is taxed at the rate of $4.30 per $100 of assessed value.  The first $225,000 of taxable value is excluded from tax. Call 202-727-1000 for more information.

Inheritance and Estate Taxes

There is no inheritance tax and only a limited estate tax.

For further information, visit http://cfo.dc.gov/ or call 202-727-2476.

FLORIDA

Sales Taxes

State Sales Tax: 6% (food, prescription and non-prescription drugs exempt). There are additional county sales taxes which could make the combined rate as high as 9.5%.
Gasoline Tax: 53.4 cents/gallon (Includes all taxes)
Diesel Fuel Tax:  54.9 cents/gallon (Includes all taxes)
Cigarette Tax: $1.34/pack of 20

Personal Income Taxes

No state income tax
Retirement Income: Not taxed.

Property Taxes

All property is taxable at 100% of its just valuation.  Every person who owns and resides on real property in Florida on January 1 and makes the property their permanent residence is eligible to receive a homestead exemption up to $50,000.  The first $25,000 applies to all property taxes, including school district taxes.  The additional exemption up to $25,000, applies to the assessed value between $50,000 and $75,000 and only to nonschool taxes.  If one spouse holds the title, the other spouse may file for the exemption with the consent of the titleholder.

Below is a general list of exemptions available in the state.

The homestead exemption for all residents applies to all property taxes, not just city and county taxes. Annual increases in the assessment of homestead property are limited to 3% of the prior year’s assessed value, or if lower, the percentage change in the Consumer Price Index for the prior year, as long as there was no change in ownership.

For more details on property taxes, click here, then find the link for the county property appraiser for the county in question. For more information on Florida property tax exemptions, click here.

Inheritance and Estate Taxes

There is no inheritance tax and only a limited estate tax.

To review information for new residents, click here.

For general information on Florida taxes, visit the Florida Department of Revenue site or call 800-352-3671.

 

GEORGIA

Sales Taxes

State Sales Tax: 4% (food, prescription drugs exempt), local taxes may add an additional 3%.
Gasoline Tax: 46.9 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 56.3 cents/gallon (Includes all taxes)
Cigarette Tax: 37 cents/pack of 20

Personal Income Taxes

Tax Rate Range: Low – 1.0%; High – 6%
Income Brackets:   Lowest – $750; Highest – $7,000
Number of Brackets: 6
Personal Exemptions: Single – $2,700; Married – $5,400; Dependents – $3,000
Standard Deduction: Single – $2,300; Married filing joint return – $3,000; Taxpayer over 65 – $1,300 additional.
Medical/Dental Deduction: Same as Federal taxes
Federal Income Tax Deduction: None
Retirement Income Taxes: Social Security is exempt.  Taxpayers who are 62 years of age or older, or permanently and totally disabled regardless of age, may be eligible for a retirement income adjustment on their Georgia tax return.  Retirement income includes income from pensions and annuities, interest income, dividend income, net income from rental property, capital gains income, and income from royalties.  For married couples filing joint returns with both members receiving retirement income, the maximum adjustment for the applicable year may be up to twice the individual exclusion amount.  Retirement income exceeding the maximum adjustable amount will be taxed at the normal rate.  The retirement income exclusion for tax year 2012 is $35,000 if age 62 or less and permanently disable.  If 65 or older, the amount is $65,000.  For more income tax information, click here.
Retired Military Pay: Same as above.
Military Disability Retired Pay: Retirees who entered the military before Sept. 24, 1975, and members receiving disability retirements based on combat injuries or who could receive disability payments from the VA are covered by laws giving disability broad exemption from federal income tax. Most military retired pay based on service-related disabilities also is free from federal income tax, but there is no guarantee of total protection.
VA Disability Dependency and Indemnity Compensation: VA benefits are not taxable because they generally are for disabilities and are not subject to federal or state taxes.
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Property Taxes

A homeowner may pay a combination of county, city, school or state taxes depending on location.  Property tax relief measures are included in the state’s comprehensive property tax credit law that can be viewed on their web site. Homeowners 62 and older who earn $10,000 or less, will find that up to $10,000 of their property’s assessed value is exempt from school taxes.  Persons 62 or older whose family income does not exceed $30,000 may qualify for an exemption from state and county property taxes equal to the amount by which the assessed value of the homestead exceeds the assessed value for the preceding tax year. For those 65 and older who earn $10,000 or less, $4,000 of their property’s value is exempt from state and county taxes as well.  Call 404-968-0778 for details.  To view additional information about property taxes, click here.

The state offers homestead exemptions to persons that own and occupy their home as a primary residence.  Many counties offer homestead exemptions that are more beneficial to the taxpayer than the exemptions offered by the state.  Homestead exemptions are filed with the county tax commissioner or the county tax assessor’s office.  The homestead exemption is deducted from the assessed value (40% of the fair market value) of the home  Then the millage rate is applied to arrive at the amount of ad valorem tax due.  Individuals age 65 and older get additional deductions. For more information on homestead exemptions click here.

Inheritance and Estate Taxes

There is no inheritance tax or gift tax and only a limited estate tax which is an amount equal to the amount allowable as a credit for state death taxes under Section 2011 of the Internal Revenue Code.  In effect, the estate taxes paid to Georgia may be used to reduce the estate taxes due the IRS.

For further information, visit the Georgia Department of Revenue site or call 404-417-4477.

HAWAII

Sales Taxes

State Sales Tax: (General Excise Tax) 4% (prescription drugs exempt) Oahu has a county surcharge tax of 1/2% to pay for a mass transit system.
Gasoline Tax: 68.7 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 76.9 cents/gallon (Includes all taxes)
(Local option taxes may add 8.8 to 18 cents to fuel tax)
Cigarette Tax: $3.20/pack of 20

Personal Income Taxes

Tax Rate Range: Low – 1.4%; High – 11.0%  The state has adopted a measure temporarily creating three new state income tax brackets.  For married couples the rates are 9 percent on income between $300,000 and $350,000; 10 percent between $350,000 and $400,000; and 11 percent rate for income above $400,000.  Additionally, the state’s standard deduction and the personal exemption were each raised by 10 percent, which will lower tax bills for low- and moderate-income families.  These rates are set to expire after tax year 2015.
Income Brackets: *Lowest – $2,400; Highest – $200,000
Number of Brackets: 12
Personal Exemptions: Single – $1,040; Married – $2,080; Dependents – $1,040.  Exemptions increase to $1,144, $2,288 and $1,144, respectively, beginning in January 2011.  Changes will be repealed on December 31, 2015.
There is an additional exemption for those over age 65.  Currently, if you are blind, deaf or totally disabled and your impairment has been certified, you can claim a disability exemption of $7,000 in lieu of the $1,040 personal exemption amount.
Standard Deduction: Single – $2,200; Married filing joint return – $4,400; Head of Household – $1,144.  Beginning January 1, 2011 the numbers are $2,200, $4,400, and $3,212, respectively.  Changes will be repealed on December 31, 2015.
Medical/Dental Deduction: Same as Federal taxes
Federal Income Tax Deduction: None
Retirement Income Taxes: Social Security, first tier Railroad Retirement benefits, military, federal, state/local, and some private pensions are exempt.  All out-of-state government pensions are exempt.  Also, employer-funded pension plans are exempt.  Distributions from private employer pension plans received upon retirement are partially taxed by the state if the employee contributed to the pension plan.
Retired Military Pay: Not taxed.
Military Disability Retired Pay: Retirees who entered the military before Sept. 24, 1975, and members receiving disability retirements based on combat injuries or who could receive disability payments from the VA are covered by laws giving disability broad exemption from federal income tax. Most military retired pay based on service-related disabilities also is free from federal income tax, but there is no guarantee of total protection.
VA Disability Dependency and Indemnity Compensation: VA benefits are not taxable because they generally are for disabilities and are not subject to federal or state taxes.
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Property Taxes

Personal property such as cars or boats are not subject to property tax.  Real property and land are assessed at 100% “fair market value.”  Taxes are administered by the four counties. The homestead exemption is $12,000, but is $40,000 in the city and county of Honolulu.  Persons 60 to 69 years of age may claim double the homestead exemption, and a person age 70 or older, may claim 2.5 times the homestead exemption.  In the city and county of Honolulu, the exemptions are:55-59 years, 1.5 times the exemption amount; 60-64 years, 2.0 times; 65-69, 2.5 times, and 70 and older, 3.0 times.  Homeowners 55 and older are exempt from property taxes on $60,000 to $120,000 (amount depends on owner’s age) of the assessed value of their residence, regardless of income.  They must pay at least $100 in taxes, however.  Homeowners 55 and older who earn less than $20,000 are also eligible for a tax credit of up to $500.  Call 808-587-4343 for details.

Inheritance and Estate Taxes

The state has imposed a tax on estates of Hawaii residents over $3.5 million ranging from 0.8% to 16% rate on estates over $10.1 million.  Nonresidents receive a reduced exemption, paying estate tax on as little as $60,000 of property.  Tax rates range from 1.4% to 8.25%.

For further information, visit the Hawaii Department of Taxation site or call 800-222-3229 or 808-587-4242.

IDAHO

Sales Taxes

State Sales Tax: 6% (prescription drugs exempt); Some Idaho resort cities, counties and auditorium districts have a local option sales tax in addition to the state sales tax which could add an additional 3%.
Gasoline Tax: 43.4 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 49.4 cents/gallon (Includes all taxes)
Cigarette Tax: 57 cents/pack of 20

Personal Income Taxes

Tax Rate Range: Low – 1.6%; High – 7.4%; Details – http://tax.idaho.gov/i-1110.cfm
Income Brackets: * Lowest – $2,400; Highest – $200,000
Number of Brackets: 7
Personal Exemptions: ** Single – $3,500; Married – $7,300; Dependents – $3,500
Standard Deduction: Single – $5,450; Married filing jointly – $10,900 (age 65 and older)
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: None
Retirement Income Tax: Generally, all income received by an Idaho resident, regardless of the source, is subject to Idaho income tax.  Idaho does not tax social security benefits, benefits paid by the Railroad Retirement Board or Canadian social security benefits (OAS or CPP).  Idaho does offer a retirement benefits deduction if you are age 65 or older, or if you are disabled and age 62 or older, and receive qualifying retirement benefits.  Persons using the “married filing separate” filing status are not eligible for this benefit.  The following are the types of benefits that qualify for this deduction (PERSI does not qualify for this benefit):

  • Civil Service Employees: Retirement annuities paid by the United States to a retired civil service employee or the unremarried widow of the employee if the recipient is age 65 or older, or disabled and age 62 or older.
  • Idaho Firemen: Retirement benefits paid from the firemen’s retirement fund of the state of Idaho to a retired fireman or the unremarried widow of a retired fireman if the recipient is age 65 or older, or disabled and age 62 or older.
  • Policemen of an Idaho city: Retirement benefits paid from the policemen’s retirement fund of a city within Idaho to a retired policeman or the unremarried widow of a retired policeman if the recipient is age 65 or older, or disabled and age 62 or older
  • Servicemen: Retirement benefits paid by the United States to a retired member of the U.S. military service or the unremarried widow of such member if the recipient is age 65 or older, or disabled and age 62 or older.

The amount deducted must be reduced by retirement benefits paid under the Federal Social Security Act and the Federal Railroad Retirement Act.  The maximum amount that may currently be deducted is:

  • Married filing jointly (age 65 or older): $41,814
  • Married filing jointly (age 62 or older and disabled): $41,814
  • Single (age 65 or older): $27,876
  • Single (age 62 or older and disabled): $27,876

Retired Military Pay: Follows federal tax rules.
Military Disability Retired Pay: Retirees who entered the military before Sept. 24, 1975, and members receiving disability retirements based on combat injuries or who could receive disability payments from the VA are covered by laws giving disability broad exemption from federal income tax. Most military retired pay based on service-related disabilities also is free from federal income tax, but there is no guarantee of total protection.
VA Disability Dependency and Indemnity Compensation: VA benefits are not taxable because they generally are for disabilities and are not subject to federal or state taxes.
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.
Military Spouses Residency Relief Act:  The earned income of qualifying spouses of Idaho serviceemembers is no longer subject to Idaho income tax due to the federal Military Spouses Residency Relief Act (SR 475, HR 1182) passed in November of 20098.

  • You are married to a servicemember who is serving in Idaho and has registered in the military with another state as a home of record; and
  • You have located to Idaho with the servicemember and you have the same domicile (permanent residence) as the servicemember’s home of record.

For specific tax information that applies to military service members and their families, click here.

Property Taxes

Taxable property is assessed at its full market value.  A general property tax is imposed for local purposes and is limited to 1% of market value.  The state property tax is suspended as long as the sales and use tax are in effect.  There is no intangible personal property tax.  A homeowner’s primary residence is eligible for an exemption of 50% of the assessed value of the home, up to a maximum of $81,000 (2013).  If you are a qualified Idaho homeowner, you may be eligible for the circuit breaker program.  To qualify you must own and occupy the home as your primary residence, you must meet income requirements and must be either age 65 or older, a widow(er), blind, former POW, fatherless or motherless minor, or a qualifying disabled person.  This program may reduce property taxes on your home and up to one acre of land by as much as $1,320.  For more information on property and other taxes, click here or call 208-334-7733 or 800-972-7660.

Idaho has a property tax deferral program.  For details, click here.

Inheritance and Estate Taxes

At the current time Idaho does not have an inheritance tax, gift tax or an estate tax.

For further information, visit the Idaho State Tax Commission site. Information for newcomers or call 208-334-7660 or 800-972-7600.

* For joint returns, the taxes are twice the tax imposed on half the income. A $10 filing tax is charged for each return and a $20 credit is allowed for each exemption.
** Idaho allows personal exemption or standard exemption as provided in the Internal Revenue Code.

ILLINOIS

Sales Taxes

State Sales Tax: 6.25% (1% on qualifying food, prescription & non-prescription drugs, medical appliances). Local government taxes can raise the total to a high of 10.5%.
Gasoline Tax:  57.5 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 68.9 cents/gallon (Includes all taxes)
Cigarette Tax: $1.98 /pack of 20 (In Chicago, the state and local rate is $6.15

Personal Income Taxes

Tax Rate Range: Flat rate of 5 percent received in 2013.
Personal Exemptions: Single – $2,100; Married – $4,200; Dependents – $2,100
Standard Deduction: None
Medical/Dental Deduction: health insurance and long-term care insurance premiums are deductible.
Federal Income Tax Deduction: None
Retirement Income Taxes: Illinois does not tax distributions received from qualified employee benefit plans, including 401(K) plans; an Individual Retirement Account, (IRA) or a self-employee retirement plan; a traditional IRA that has been converted to a Roth IRA; the redemption of U.S. retirement bonds; state and local government deferred compensation plans; a government retirement or government disability plan, including military plans; railroad retirement income; retirement payments to retired partners; a lump sum distribution of appreciated employer securities; and the federally taxed portion of Social Security benefits. For more information, click here.
Retired Military Pay: Not taxed.
Military Disability Retired Pay: Retirees who entered the military before Sept. 24, 1975, and members receiving disability retirements based on combat injuries or who could receive disability payments from the VA are covered by laws giving disability broad exemption from federal income tax. Most military retired pay based on service-related disabilities also is free from federal income tax, but there is no guarantee of total protection.
VA Disability Dependency and Indemnity Compensation: VA benefits are not taxable because they generally are for disabilities and are not subject to federal or state taxes.
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Property Taxes

Taxes are imposed by local government taxing districts (counties, townships, municipalities, school districts, and special taxing districts.  Most property in the state is assessed at 33.33% of its market value, except farmland which is based on its ability to produce income.  Cook County has different criteria.  Single family residences are assessed at 16%.  More information – http://tax.illinois.gov/Publications/PIOs/PIO-16pdf

There are seven major homestead exemptions and some that are limited in the application (Click here for details).

General Homestead Exemption is available annually for owner-occupied residential property.  The amount of exemption is the increase in the current year’s equalized assessed value (EAV), above the 1977 EAV, up to a maximum of 6,000.

Senior Citizens Assessment Freeze Homestead Exemption allows senior citizens who have a total household income of less than $55,000, and meet certain other qualifications to elect to maintain the equalized assessed value (EAV) of their homes at the base year EAV thereby preventing any increase in that value due to inflation.

Homestead Improvement Exemption is limited to the fair cash value that was added to the homestead property by any new improvement, up to an annual maximum of $55,000.  The exemption continues for four years from the date the improvement is completed and occupied.

Senior Citizens Homestead Exemption allows a $4,000 reduction in the EAV of the property that  a person 65 years of age or older is obligated to pay taxes on, and owns and occupies, or leases and occupies as a residence.  Exemption is limited to the fair cash value that was added to the homestead property by any new improvement, up to an annual maximum of $45,000.  The exemption continues for four years from the date the improvement is completed and occupied.

Disabled Veterans’ Homestead Exemption may be up to $70,000 of the assessed value for certain types of housing owned and used by a disabled veteran or his or her unmarried surviving spouse.  The Illinois Department of Veterans’ Affairs determines the eligibility for this exemption, which must be reestablished annually.

Senior Citizens Real Estate Tax Deferral Program allows persons age 65 or older, who have a total household income of less than $50,000 and meet certain other qualifications, to defer all or part of their real estate taxes and special assessments.  The deferral is similar to a loan against the property’s market value and a lien is filed on the property in order to ensure repayment to the deferral.  The state pays the property taxes and then recovers the money, plus 6 percent annual interest, when the property is sold or transferred.

Disabled Persons’ Homestead Exemption provides a $2,000 reduction in a property’s equalized assessed value to a qualifying property owned by a disable person.  An application must be filed annually for this exemption.

Information on the state’s Circuit Breaker and Pharmaceutical Assistance  programs can be found in the state’s Web site.  Click here.

Inheritance and Estate Taxes

Illinois saw its estate tax disappear on January 1, 2010 due to repeal of the federal estate tax, and despite the retroactive reinstatement of the federal estate tax, Illinois’ tax did not come back automatically.  Nonetheless, the Illinois legislature acted quickly at the beginning of 2011 to reinstate the Illinois estate tax for the 2011 tax year with a $2,000,000 exemption.  However, in December 2011 the Illinois legislature acted to increase the exemption to $3,500,000 in 2012 and $4,000,000 in 2013.

For further information, visit the Illinois Department of Revenue site or call 800-732-8866.

INDIANA

Sales Taxes

State Sales Tax: 7% (food and prescription drugs exempt)
Gasoline Tax: 56.6 cents/gallon (Includes all taxes)
Diesel Fuel Tax:  74.6 cents/gallon (Includes all taxes)
Cigarette Tax: 99.5 cents/pack of 20

Personal Income Taxes

Tax Rate Range:  Flat rate of 3.4% of federal adjusted gross income.  See tax info.  Also click here. Counties also have the authority for a local option income tax whose goal is to provide income for the counties instead of raising property taxes.  Carroll, Clark, Clay, Madison and Wabash counties have adopted new county option income rates.  For details, click here and here.
Personal Exemptions: Single – $1,000; Married – $2,000; Dependents – $1,500; $1,000 for taxpayer and/or spouse if age 65 or over; $1,000 for taxpayer and/or spouse if blind; $500 additional exemption for each individual age 65 or over if federal adjusted gross income is less than $40,000.
Standard Deduction: None
Medical/Dental Deduction: None
Federal Income Tax Deduction: None
Retirement Income Taxes: Social Security is exempt.  Taxpayers 60 and older may exclude $2,000 from military pensions minus the amount of Social Security and Railroad Benefits received.  Taxpayers age 62 and older may deduct from their adjusted gross income $2,000 from a federal civil service annuity. Out-of-state pensions are fully taxed.  Homeowners can deduct up to $2,500 from their income taxes for property taxes on their residence.  To view information for seniors, click here.
Retired Military Pay: Military retirees who are age 60 are entitled to deduct up to $5,000 of military or survivor benefits.
Active Duty or Reserve Military Pay: Military personnel (regardless of age) on active duty or in the reserves may deduct up to $5,000 of taxable military pay if it is not already excluded or deducted from their adjusted gross income.
Military Disability Retired Pay: Retirees who entered the military before Sept. 24, 1975, and members receiving disability retirements based on combat injuries or who could receive disability payments from the VA are covered by laws giving disability broad exemption from federal income tax. Most military retired pay based on service-related disabilities also is free from federal income tax, but there is no guarantee of total protection.
VA Disability Dependency and Indemnity Compensation: VA benefits are not taxable because they generally are for disabilities and are not subject to federal or state taxes.
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Property Taxes

Property taxes in Indiana are administered at the local level with oversight by the Indiana Department of Local Government Finance. They are imposed on both real and personal property.  Property, which is assessed at 100% of its true value, is subject to taxation by a variety of taxing units (schools, counties, townships, cities and towns, libraries, etc.) making the total tax rate the sum of the tax rates imposed by all of the taxing units in which the property is located.  Homeowners are eligible for a credit against the property taxes that they pay on their homestead.  The amount of credit to which the individual is entitled equals 10% of the individual’s property tax liability, which is attributable to the homestead during the calendar year. A taxpayer entitled to receive a homestead credit is also entitled to a standard deduction from the assessed value of the homestead.  The deduction is the lesser of one-half of the assessed value of the real property or $35,000. Homeowners 65 and older who earn $25,000 or less are eligible to receive a tax reduction on property with an assessed value of $182,430 or less and the individual received no other property tax deductions except for mortgage, standard, and fertilizer storage deductions.  Click here for details.  A surviving spouse is entitled to the deduction if they are at least 60 years old.  The amount of the deduction is the lesser of one-half of the assessed value of the real property or $12,480.  Call 317-232-3777 for details. Also click here.

circuit breaker program is aimed at helping residents by ensuring they don’t pay more than 2% of their property value in taxes.  The goal is to provide predictability in tax bills and equity among Hoosier taxpayers.

For more information on property tax deductions, click here .

Inheritance and Estate Taxes

The inheritance tax (Class A) ranges from 1% to 10% based on fair market value of property transferred at death.  The estate tax is the amount by which federal credit exceeds inheritance taxes paid to all states. Click for details.

For further information, visit the Indiana Department of Revenue site.

*Includes local county taxes

IOWA

Sales Taxes

State Sales Tax: 6% (food and prescription drugs exempt); local option taxes can add up to another 2%.
Gasoline Tax:: 40.0 cents/gallon (Includes all taxes)
Diesel Fuel Tax:  47.9 cents/gallon (Includes all taxes)
Cigarette Tax: $1.36/pack of 20

Personal Income Taxes

Tax Rate Range: Low – 0.36%; High – 8.98% Note: Iowa now exempts active duty military pay from state income taxes.
Income Brackets: Lowest – $1,494; Highest – $67,230
Number of Brackets:  9
Personal Tax Credits:  Single - $40; Married filing jointly – $80;
Dependents – $40; 65 years and older – $20
Standard Deduction: (2013) Single - $1,900; Married filing jointly – $4,670
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: Full
Retirement Income Taxes: If you receive a pension, annuity, self-employed retirement plan, deferred compensation, IRA or other retirement plan benefits, you may be eligible to exclude from Iowa income tax a portion of the retirement income that is taxable on your Federal return.  The exclusion can be up to $6,000 for individuals and up to $12,000 for married taxpayers.  Click here for details. Social Security benefits are not included.  Iowa does not tax Social Security benefits in the same manner as the IRS.  In calculating the taxable amount of Social Security, single persons can exclude $25,000, married filling jointly can exclude $32,000.  The state is implementing a gradual phase-out of the tax on Social Security income.  For tax year 2012 the phase out percentage is 89%.  To qualify for the exclusion you must be either age 55 or older on December 31, disabled or a surviving spouse or a survivor having an insurable interest in an individual who would have qualified for the exclusion during the year.  Out-of-state government pensions qualify for exemptions.  More information
Retired Military Pay: Up to $12,000 can be excluded for joint filers and up to $6,000 for all other filing statuses for those 55 and older, disabled or surviving spouse of qualifying person.
Military Disability Retired Pay: Retirees who entered the military before Sept. 24, 1975, and members receiving disability retirements based on combat injuries or who could receive disability payments from the VA are covered by laws giving disability broad exemption from federal income tax. Most military retired pay based on service-related disabilities also is free from federal income tax, but there is no guarantee of total protection.
VA Disability Dependency and Indemnity Compensation: VA benefits are not taxable because they generally are for disabilities and are not subject to federal or state taxes.
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Property Taxes

Iowa has more than 2,000 taxing authorities.  All property is assessed at 100% of market value.   Most property is taxed by more than one taxing authority.  The tax rate differs in each locality and is a composite of county, city, school district and special levies.  A property tax credit is available to residents whose total household income is less than $19,503 and are age 65 or older, totally disabled or are a surviving spouse (not remarried) and born before 1934.  A homestead tax credit is given to residents who live in the state for at least six months of each year and actually live on the property on July 1.  Once a person qualifies, the credit continues.  The current credit is the first $4,850 of the actual value. Property taxes may be suspended or reduced if the property owner receives Supplemental Security Income or lives in a nursing home and the Department of Human Services is paying part or all of the costs.  The suspended taxes will have to be paid when a property is sold or transferred. For more details, click here.

Inheritance and Estate Taxes

The Iowa inheritance tax ranges from 1% to 15% depending on the amount of the inheritance and the relationship of the recipient to the decedent.  If all the property of the estate has a value of less than $25,000, no tax is due. The surviving spouse’s share, regardless of the amount, is not subject to tax. Currently annual gifts in the amount of $12,000 or less are not taxable. Click here for details. Iowa estate tax is not applicable for deaths on or after 1/1/05 due to changes in the IRS Code which replaced the state death tax credit with a state death tax deduction.

For further information, visit the Iowa Department of Revenue or call 515-281-3114 or 800-367-3388.

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