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Taxes in New York to Wyoming

Taxes by State

Please choose a State: New YorkNorth CarolinaNorth DakotaOhioOklahomaOregon,
PennsylvaniaRhode Island, South CarolinaSouth DakotaTennesseeTexasUtahVermontVirginia,
WashingtonWest VirginiaWisconsinWyoming

NEW YORK

Sales Taxes

State Sales Tax:  4.0% (food, prescription and non-prescription drugs exempt); Other taxing entities (cities and counties) may add up to 5.00% in additional sales tax.
Gasoline Tax: 68.3 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 74.1 cents/gallon (Includes all taxes)
Cigarette Tax: $4.35/pack of 20; New York City adds an additional $1.50.

Personal Income Taxes

Tax Rate Range: Low – 4.0%; High - 8.82%.  The state has enacted two new temporary income tax rates in its 2010 budget levied on the highest-income filers.  For households with taxable income above $500,000, regardless of filing status, the tax rate rises to 8.97 percent from 6.85 percent; for those with taxable income below $500,000 but above $200,000 for single individuals, $250,000 for heads of households, and $300,000 for married couples filing joint returns, the rate increases to 7.85 percent from 6.85 percent. You are entitled to a household credit if you are single and have an adjusted gross income of $28,000 or less, or married with AGI of $32,000 or less.
Income Brackets: * Lowest – $8,000; Highest – $500,000
Number of Brackets: 5
Personal Exemptions: Single – $0; Married – $0; Dependents – $1,000
Standard Deduction: Single – $7,500; Married filing jointly – $15,000; Dependents – $3,000
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: None
Retirement Income Taxes: Social Security, military, civil service, New York state/local government pensions are exempt.  Also, up to $20,000 of qualified private pensions for those 59½ and older.  Out-of-state government pensions can be deducted as part of the $20,000 exemption.  For more information on senior citizen and retiree benefits, click here.
Retired Military Pay: Exempt from taxes.
Military Disability Retired Pay: Disability Portion – Length of Service Pay: Member on September 24, 1975 — No tax; Not Member on September 24, 1975 — Taxed, unless combat incurred.  Retired Pay – Based solely on disability.  member on September 24, 1975 — No tax.  Not Member on September 24, 1975 — Taxed, unless all pay based on disability, and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.  For information on taxes for military personnel in New York State, click here and here.
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 taxation is limited to real property.  New York State law gives local governments and public school districts the option of granting a reduction on the amount of property taxes paid by qualifying senior citizens.  This is accomplished by reducing the assessed value of residential property owned by seniors by 50%.  To qualify, seniors must be 65 years of age or older and meet certain income limitations and other requirements.  For the 59% exemption, the law allows each county, city, town, village or school district to set the maximum income limit at any figure between $3,000 and $24,000.  Localities have the further option of granting an exemption of less than 50% to senior citizens whose incomes exceed the local income limit by less than $1,000 in three income ranges or $900 in six other income ranges.  For example, in a community that has taken this “sliding-scale” option and has adopted the $21,500 income maximum, an eligible resident whose income is more than $21,500 but less than $22,500, is entitled to a 45% exemption.  If a person’s income is more than $29,000 but less than $32,400, the exemption is 5%.  For more information, click here.

There is no general, statewide homestead property tax exemption.  However, a taxpayer’s primary residence may be partially exempted from school taxes under the state’s School Tax Relief Program (STAR) program.  Seniors can take advantage of this program that provides a partial exemption from school property taxes.  All New Yorkers who own and live in their one-, two-, or three-family home, condominium, cooperative apartment, manufactured home, or farm dwelling are eligible for a STAR exemption on their primary residence.  Click here for more information.

There are three parts to the STAR program:
The Basic STAR exemption is available for owner-occupied, primary residences regardless of the owners’ ages or incomes.  It works by exempting the first $50,000 of the full value of a home from school taxes if a senior citizen’s income in 2009 was under $79,050 and at least $30,000 for all other homeowners.  Click here

The Enhanced STAR exemption is available for the primary residences of senior citizens (age 65 and older) with yearly household incomes not exceeding the statewide standard.    For qualifying senior citizens, the Enhanced STAR program works by exempting the first $62,200 of the full value of their home from school property taxes.  For property owned by a husband and wife, or by siblings, only one of them must be at least 65 years of age as of December 31 of the year in which the exemption will begin to qualify for the Enhanced exemption.  Their combined annual income, however, must not exceed the STAR income standard.  Call 877-678-2769 for details.

For general information on senior citizen and retiree benefits in New York, click here.

Inheritance and Estate Taxes

There is no inheritance tax.  Regarding the estate tax, if the date of death is on or after January 1, 2004, the estate must file a New York State estate tax return if any one of the following conditions are met:  (1) The decedent was domiciled in New York State at the time of death and the total of the federal gross estate, federal taxable gifts and specific exemption exceeds $1 million; (2) The decedent was not domiciled in New York State at the time of death and the estate includes real or tangible personal property with a situs in New York State, and the total of the federal gross estate, federal taxable gifts and specific exemption exceeds $1million; or (3) The decedent was neither a resident nor a citizen of the United States, the estate includes real or tangible personal property with a situs in New York State, and the estate is required to file a federal estate tax return. For more information, click here.

For further information, visit the New York Department of Taxation and Finance site.
* For joint returns, the taxes are twice the tax imposed on half the income.

NORTH CAROLINA

Sales Taxes

State Sales Tax:4.750%  Prescription drugs, medical equipment exempt, food subject to 2% county tax.  Counties may add an additional 2% to 3% tax.
Gasoline Tax: 56.2 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 62.2 cents/gallon (Includes all taxes)
Cigarette Tax: 45 cents/pack of 20

Personal Income Taxes

Tax Rate Range: Low – 6.0%; High – 7.75%
Income Brackets: * Lowest – $12,750; Highest – $60,000
Number of Brackets: 3  The tax brackets reported are for single individuals.  for married taxpayers the same rates apply to income brackets ranging from $21,250 to $100,000.  Lower exemption amounts allowed for high-income taxpayers. For tax year 2012 the starting point for calculating a taxpayers taxable income is the taxpayer’s federal adjusted gross income (AGI).  The previous starting point was the taxpayer’s federal; taxable income.
Personal Exemptions: ** Single – $1,200; Married – $2,500; Dependents – $0 Click here for more information.
Standard Deduction: Single – $3,000; Married filing jointly – $6,000. If you or your spouse are 65 or older you may claim an additional deduction  (See state tax instruction booklet)
Medical/Dental Deduction: Federal amount.  Income tax credit for premiums paid on long-term care insurance that covers the individual, a spouse or dependent.  Credit is equal to 15% of premium cost but may not exceed $350.
Federal Income Tax Deduction: None
Retirement Income Taxes: Social Security is exempt.  At least $4,000 in exclusions for federal, state and local pensions (depending on dates and length of service); up to $2,000 exemption for qualified private pensions, including IRAs.  Out-of-state government pensions also qualify for the $4,000 exemption.  State retirees with at least 5 years of creditable service as of August 12, 1989, will be permanently exempt from state income tax on their retired/retainer pay.  Be sure to investigate the Bailey decision.  Taxable income also includes income derived from gaming in North Carolina.  For more details on retirement income deductions, click here and on the tax form page 13 – click here.
Retired Military Pay: If an individual had five years of creditable service as of August 12, 1989, all military retired pay is exempt from taxes.  Otherwise, a deduction of up to $4,000 is allowed for military pay or survivor’s benefits.
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 property, real and personal, is subject to taxation and is assessed based on 100% of appraised value.  Taxes are collected by cities and counties.  Click here for tax rates.

There is an elderly or disabled exclusion which excludes the greater of the first $25,000 or 50% of the appraised value of the permanent residence of the qualifying owner.  A qualifying owner must be at least 65 years old or be totally and permanently disabled.  The owner cannot have an income amount from the previous year that exceeds the income eligibility limit for the urgent year which is $27,100 for 2012.

The state also has a circuit breaker property tax deferment program.  Under this program, taxes for each year are limited to a percentage of the qualifying owner’s income.  The qualifying owner must either be at least 65 years of age or be totally and permanently disabled.  For an owner whose income amount for the previous years does not exceed the income eligibility limit for the current year, which for tax year 2012 is $27,100, the owner’s taxes will be limited to 4% of the owner’s income.  For an owner whose income exceeds the income eligibility limit, which for tax year 2010 is $40,650, the owner’s taxes will be limited to 5% of the owner’s income.

Inheritance and Estate Taxes

On June 27, 2011, a bill was signed into law by North Carolina governor Beverly Perdue.  This law clarifies that the North Carolina estate tax does not apply to the estates of decedents who died in 2010 but will apply to the estates of decedents dying on or after January 1, 2011 with a $5,000,000 exemption, which is indexed for inflation in 2012 so that the 2012 exemption is $5,120,000.

For further information, visit the North Carolina Department of Revenue site.
* The tax brackets reported are for single individuals. For married taxpayers, the same rates apply to income brackets ranging from $21,250 to $200,000. An additional middle income tax credit is allowed.
** Taxpayers who claim standard deduction or itemize deductions on federal return must make adjustments.

NORTH DAKOTA

Sales Taxes

State Sales Tax: 5% (food and prescription drugs exempt); 6% on lodging, 7% on alcoholic beverages. Cities or counties which have adopted home rule charters may levy additional sales and use taxes up to 3.0%.
Gasoline Tax: 41.4 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 47.4 cents/gallon (Includes all taxes)
Cigarette Tax: 44 cents/pack of 20

Personal Income Taxes

Tax Rate Range: * Low – 1.51%; High – 3.99%
Income Brackets: *Lowest – $35,350; Highest – $388,350 (2013)  (See tax table)
Number of Brackets: 5  The tax brackets reported are for single individuals.  For married taxpayers the same rates apply to income brackets ranging from $59,100 to $388,350.  An additional $300 personal exemption is allowed for joint returns or unmarried head of household.
Personal Exemptions: ** Single – $3,900; Married – $7,800; Dependents – $3,900.  There is also a new marriage income tax credit with a maximum limit of $300.
Standard Deduction: Federal amount ($6,100 – single, $12,200 – joint; single over 65 – $1,400; married $1,100))
Medical/Dental Deduction:  Full
Federal Income Tax Deduction: *None
Retirement Income Taxes: A total of $5,000 can be excluded from military, civil service, some state/local government, and qualified pensions, minus amount of Social Security received.  Out-of-state government pensions are fully taxed. Call 701-328-3275 for more information.
Retired Military pay: North Dakota’s individual income tax law provides only one special deduction for active members of the military.  It does not include combat pay that is exempt from federal income tax.  The current income tax law does not provide for any special deductions for retired military members.
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 by the state, counties, townships, and municipalities. Residential property is taxed as 9% of assessed value.  For the most part, personal property is exempt from property tax.  Personal property of utilities companies that are assessed by the State board of Equalization is subject to property tax.  Household personal property, inventories, and machinery and equipment used in trade or manufacture are exempt from property taxes.  Machinery and equipment used in refining products from oil or gas extracted from the earth is deemed to be real property and therefore subject to property taxes.  A mobile home used as a residence or place of business is also subject to a property tax.

There is also a Homestead Tax Credit available to senior citizens (65+) or disabled persons who own or rent their home.  Your income, plus the income of your spouse and any dependents, may not exceed $26,000 for the calendar year preceding the assessment date.  Your assets may not exceed $75,000.  The maximum homestead credit is $4,500 (income $0 to $18,000). Click here for details.  For a brochure on the Homestead Tax Credit, click here. Call 701-328-3127 for details.

Inheritance and Estate Taxes

North Dakota does not have an inheritance tax.  There is an estate tax based on a decedent’s total gross estate and limited to the credit for state death taxes allowed on the Federal 706 estate tax return.  North Dakota’s definition of a deceased person’s taxable estate is identical to the federal definition and North Dakota recognizes all federal exemptions and deductions.

For further information, visit the North Dakota State Tax Department site or call 701-328-3657.  To review the North Dakota tax guide, click here.
* Rates for single person.
** State allows personal exemption or standard deductions as provided in the Internal Revenue Code.

OHIO

Sales Taxes

State Sales Tax: 5.5% (food, newspapers, magazine subscriptions, telephone service and prescription drugs exempt); Counties levy additional sales taxes which may add up to 2.25% in additional sales tax. Click here for details.
Gasoline Tax:  46.4 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 52.4 cents/gallon (Includes all taxes)
Cigarette Tax: $1.25/pack of 20

Personal Income Taxes

Tax Rate Range: Low – 0.587%; High – 5.925%
Income Brackets: Lowest – $5,100; Highest – $204,200; Several cities levy municipal income taxes.
Number of Brackets: 9
Personal Exemptions: * Single – $1,700; Married – $3,400; Dependents – $1,700
Standard Deduction: None
Medical/Dental Deduction: Unreimbursed medical/dental expenses, premiums for long-term care insurance, and unsubsidized health insurance premiums are deductible.
Federal Income Tax Deduction: None
Retirement Income Taxes: Social Security is exempt.  Credit of up to $200 if retirement income is at least $8,000, plus a one-time credit on lump sums.  Seniors 65 and over may claim a $50 credit.  Only one credit is allowed for each return. Out-of-state government pensions can be applied toward the retirement income credit.  Taxpayers can deduct the following benefits only to the extent that they are included in the taxpayers federal adjusted gross income: Social Security, Tier 1 and TierII railroad benefits, and supplemental and other railroad benefits.
Retired Military Pay: Military retired pay of taxpayers who retired from service in the active or reserve components of the U.S. Army, Navy, Air Force, Marine Corps, Coast Guard, or from the National Guard can deduct their military retirement income to the extent that income is not otherwise deducted or excluded in computing federal or Ohio adjusted gross income.  Taxpayers who served in the military and receive a federal civil service retirement pension are also eligible for a limited deduction if any portion of their federal retirement pay is based on credit for their military service.  These retirees can deduct only the amount of their federal retirement pay that is attributable to their military service.  Military taxpayers - click here and 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

The taxable base is the assessed value of land and buildings.  Assessed value is 35% of market value, except for certain agricultural land.  County auditors must reappraise all real estate every six years.  A homestead exemption is available to the homesteads of qualified homeowners who are either at least 65 years old, permanently and totally disabled, or at least 59 years of age and the surviving spouse of a deceased taxpayer who had previously received the exemption. For more details, click here.

There is a homestead exemption available.  Homestead exemption property tax reductions are granted to homeowners who are at least 65 years of age; permanently and totally disabled; or to surviving spouses at least 59 years of age if the deceased had previously received the exemption.  In tax year 2010, a total of 854,251 real property homestead exemptions were granted; the average reduction in taxes was $441 per homestead; and the total reduction in real property taxes was $378,743,424.

Inheritance and Estate Taxes

On June 30, 2011, Ohio Governor John Kasich signed the 2012 – 2013 budget into law, which eliminates the Ohio estate tax effective for deaths occurring on or after January 1, 2013.  Ohio does not have an inheritance tax.

For further information, visit the Ohio Department of Taxation site.
* Add an additional $20 per exemption tax credit.

OKLAHOMA

Sales Taxes

State Sales Tax: 4.5% (prescription drugs exempt); cities, towns and counties may levy local sales taxes.  The county tax cannot exceed 2% but some cities have sales taxes over 6.35%.
Gasoline Tax: 35.4 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 38.4 cents/gallon (Includes all taxes)
Cigarette Tax: $1.03/pack of 20

Personal Income Taxes

Tax Rate Range: * Low – 0.5%; High – 5.25%
Income Brackets: Lowest – $1,000; Highest – $8,701
Number of Brackets: 7
Personal Exemptions: Single – $1,000; Married – $2,000; Dependents – $1,000
Additional Exemptions: 65 or older – $1,000
Standard Deduction: Single – $5,950; Married filing jointly – $11,900; Married filing separately – $5,950
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: Full but higher rates apply to the remaining taxable income
Retirement Income Taxes: The state does not tax Social Security benefits.  Each individual may exclude their retirement benefits, up to $10,000, but not to exceed the amount included in the Federal Adjusted Gross Income.  For any individual who claims the exclusions for government retirees on Schedule 511-A, line 4 and 5, the amount of the exclusion cannot exceed $10,000 minus the amounts already claimed on Schedule 511-A, 4 and 5 (if less than zero, enter zero).  The retirement benefits must be received from an employee pension benefit plan, an eligible deferred compensation plan, an individual retirement account, annuity or trust or simplified employee pension under IRC section 408, an employee annuity (a) or (b), United States Retirement bonds under IRC section86, or lump-sum distributions from a retirement plan under IRC section402 (e).  There is no longer a modified AGI limit beginning with tax year 2010. For more information, click here and here.
Retired Military Pay: An individual may exclude the greater of 75% of their retirement benefits or $10,000, but not to exceed the amount included in the Federal Adjusted Gross Income.  The retirement benefits must be from any component of the Armed Forces of the U.S.
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

Real property is assessed at an amount between 11% and 13.5% of its fair cash value.  Oklahoma offers a homestead exemption for homeowners which reduces the property’s assessed value by $1,000.  In most cases this will result in a tax savings of $80 to $120.  If gross household income is under $20,000 a year or less and you meet all of the homestead exemption requirements, you may qualify for an additional $1,000 exemption.  A property tax refund worth up to $200 is available if you are 65 or older, or totally disabled, and have an income of $12,000 or less.  There is a 100% property tax exemption for disabled veterans.  Veterans and the surviving spouse of a veteran may also qualify for a property tax exemption.

Senior citizens with a household income of less than $25,000 previously qualified for a valuation freeze on their primary residence.  This meant that their property tax would not go up just because the value of other homes in the neighborhood has gone up.  As the result of a law passed in 2004, the amount of qualifying income would be fixed to the Federal Department of Housing and Urban Development’s estimate of median family income.  Call 405-713-1236.  For more information on ad valorem taxes, click here.

Inheritance and Estate Taxes

There is no inheritance tax but there is an estate tax.  Estate tax is ½% to 10% of the net estate at the time of death and is independent of the federal estate tax.  It also imposes an additional estate tax that is essentially designed to absorb any available federal estate credit for state death taxes.  The amount of Oklahoma estate tax imposed depends on who gets what.  For details, click here.

For further information, visit the Oklahoma Tax Commission site or call 405-521-3160.

OREGON

Sales Taxes

State Sales Tax: None
Gasoline Tax: 49.5 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 54.7 cents/gallon (Includes all taxes)
Cigarette Tax: $1.31/pack of 20

Personal Income Taxes

Tax Rate Range: Low – 5%; High – 11%. Starting in tax year 2012 the personal income tax rate will be 11% on taxable income over $250,000.  Oregon’s 11 percent personal income tax is now tied with Hawaii’s for the highest rate in the country.  Because its capital gains tax rate is linked to the income tax, Oregon’s tax on investment gains is also the nation’s highest.
Income Brackets: ** Lowest – $3,250; Highest – $250,000
Number of Brackets: 4
Personal Tax Credits: Single – $188; Married – $376; Dependents – $188
Additional Credits: Credit equal to 40% of federal credit
Standard Deduction: Single – $2,025; Married filing jointly – $4,055; Deduction greater if age 65 or older.
Additional Deduction: Single over 65 – $1,200; Married over 65 filing jointly $2,000
Medical/Dental Deduction: Full only for age 59 or older, if itemized.  Oregon allows a tax credit on long-term care insurance premiums.  The credit is the smaller of 15% of premiums paid or $500.
Federal Income Tax Deduction: $5,000 ($2,500 if married filing separately)
Retirement Income Taxes: Most retirement income is subject to Oregon tax when received by an Oregon resident.  This is true even if you were a nonresident when you earned the income.  However, you may subtract some or all of your federal pension income from Oregon income.  The state does not tax Social Security or railroad retirement benefits.  Depending on your age and income, you may be entitled to a retirement income credit on your Oregon return.  If you receive a U.S. government pension, you may be entitled to subtract part or all of that pension on your Oregon Individual income tax return.  For more information, click here.

Retired Military Pay: Federal retirees, including military personnel, may be able to subtract some or all of their federal pension income.  This includes benefits paid to the retiree or to the surviving spouse.  The subtraction amount is based on the number of months of federal service before and after October 1, 1991.  Retirees can subtract their entire federal pension if all the months of federal service occurred before October 1, 1991.  If there are no months of service before October 1, 1991, retirees cannot subtract any federal pension.  If service included months before and after October 1, 1991, retirees can subtract a percentage of their pension 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

Oregon does not grant homeowners a homestead exemption.  Tax rates are set by the counties and any special considerations are levied by county officials.  Homeowners 62 or older may delay paying property taxes based on certain income criteria.  The state offers a Disabled Citizen Property Tax Deferral Program and a Senior Citizen Property Tax Deferral Program.  Both deferral programs allow qualified taxpayers to defer payment of their property taxes on their homes.  The state pays the taxes to the county, maintains the account, and charges 6% simple interest, which also is deferred.  Taxes are owed when the taxpayer receiving the deferral dies, sells the property, ceases to live permanently on the property, or the property changes ownership.

To qualify for either program, the taxpayer must live on the property and have a total household income of less than $39,500 for the year before application.  Participants may remain on either program as long as their federal adjusted gross income does not exceed that amount.  If a participant’s income exceeds the $39,500 limit, part of the taxes still may be deferred.  Participants can come in and out of the programs if their income changes.  In addition to meeting the income limitation and property ownership requirement, disabled persons must be receiving or be eligible to receive federal Social Security Disability benefits to qualify.  Residents must be 62 years old or older to qualify for the Senior Citizen Property Tax Deferral Program.  Call 800-356-4222 or 503-376-4988. For other property tax information, click here.

Inheritance and Estate Taxes

At the beginning of 2012, the laws governing Oregon’s inheritance tax changed.  First the name of the tax changed from an “inheritance tax” to an “estate tax.”  This is consistent with the majority of states and the federal government which defines an estate tax as a tax on an entire estate while an inheritance tax is defined as a tax assessed against only certain beneficiaries of an estate.

In addition, while the estate tax emption of $1,000,000 remains in effect.  The tax will only apply to the value of an estate in excess of $1,000,000.  Under current law once an estate exceeds $1,000,000 the tax applies to the entire estate and the rates change such that the majority of estates valued between $1,000,000 and $2,000,000 will pay slightly less in taxes an estates valued over $2,000,000 will pay slightly more in taxes.

For more information, click here.

For further information, visit the Oregon Department of Revenue site or call 503-378-4988.  If you are thinking of moving to Oregon, click here.
* Tax rates to do not include local option taxes of 1 to 2 cents.
** For joint returns, the taxes are twice the tax imposed on half the income.
Note: Oregon has a statutory provision for automatic adjustment of tax brackets, personal exemption or standard deductions to the rate of inflation.

PENNSYLVANIA

Sales Taxes

State Sales Tax: 6% (food, clothing, text books, heating fuels,  prescription and non-prescription drugs are exempt)  Other taxing entities may add up to 2%.
Gasoline Tax:  50.7 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 63.6 cents/gallon (Includes all taxes)
Cigarette Tax: $1.60/pack of 20

Personal Income Taxes

Tax Rate Range: Flat rate of 3.07%
Personal Tax Exemptions: None
Standard Deduction: None
Medical/Dental Deduction: None
Federal Income Tax Deduction: None
Retirement Income Taxes: Retirement income is not taxed after age 59 1/2 if the person has reached retirement, based on years of service or age.  Retired means meeting the requirements of a Pennsylvania eligible plan and separated from service by retiring.  Eligible employer-sponsored retirement plans can, but do not necessarily, include employer-sponsored deferred compensation plans; 401(k) plans, thrift plans, thrift savings plans, and eligible welfare plans.  Income not taxed includes Social Security benefits and Railroad Retirement benefits; commonly recognized pension, old age retirement benefits paid after becoming eligible to retire, and then retiring.  It also includes United Mine Workers’ pensions, military pensions, and civil service annuities. For more information, click here.
Retired Military Pay: As long as you retire from the military with either years of service or age, your retirement income is not 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 taxes are levied by local governments (counties, municipalities and school districts).  The tax cannot exceed 30 mills on the assessed valuation of the property without special permission from the courts.  Households with claimants or spouses 65 years of age or older, widows or widowers 50 years of age or older and the permanently disabled 18 years of age or older meeting income eligibility requirements may qualify for this program.  Rebates of paid property tax or rent, up to a maximum of $975 per year, are available.  To qualify, annual household eligibility income must not exceed $35,000.  Applicants can exclude, as income, one-half of Social Security, Supplemental Security Income and Railroad Retirement Tier 1 benefits. The Property Tax/Rent Rebate program allows residents to exclude 50% of Social Security payments and 50% of Railroad Retirement benefit payments from eligibility income.  The maximum rebate is $650. Counties may levy an intangible personal property tax, which taxes stocks, bonds and other personal property taxpayers may own.  Not all counties levy this tax. For more details, click here.

Inheritance and Estate Taxes

The Pennsylvania inheritance tax is calculated at a percentage of the value of the assets transferred which is determined by the relationship of the heir to the decedent and the decedent’s date of death.  The tax rate is 4.5% for transfers to direct descendants (lineal heirs), 12% for transfers to siblings, and 15% for transfers to other heirs (except charitable organizations, exempt institutions, and government entities). Property owned jointly between husband and wife is exempt from the tax, while property inherited from a spouse, or from a child 21 or younger by a parent is exempt.  The estate tax is related to federal estate tax collection.

For further information, visit the Pennsylvania Department of Revenue site or call 717-787-8201.

RHODE ISLAND

Sales Taxes

State Sales Tax: 7% (food, some clothing, precious metal bullion, some burial-related items, prescription and non-prescription drugs are exempt). The tax on clothing applies to each sale of clothing and footwear with a sales price of more than $250.  Tax on meals and beverages is 8%.  Click here to see taxes on other items.
Gasoline Tax: 51.4 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 57.4 cents/gallon (Includes all taxes)
Cigarette Tax: $3.50/pack of 20

Personal Income Taxes

Tax Rate Range: Low – 3.75%, High – 9.9%.
Income Brackets: (Single) Lowest – $58,600, Highest – $133,250
Number of Brackets: 5
Personal Exemptions: Federal exemptions multiplied by $3,650.
Standard Deduction: Federal amount or if age 65 or older, $8,000 (single), $16,000 (married filing jointly).
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction:  None
Retirement Income Taxes: Railroad Retirement benefits are exempt.  Out-of-state government pensions are fully taxed.  Social Security is taxed to the extent it is federally 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

State property taxes are not imposed directly by the state, but a portion of the city and town taxes are set aside for state purpose. Taxes are assessed and collected by the local jurisdiction.  Fire district taxes are collected in some rural communities. Homeowners 65 and older who earn $30,000 or less can get a property tax relief credit of up to $300. Call 401-222-2280 for details or click here.

Inheritance and Estate Taxes

There is no inheritance tax.  Rhode Island imposes a tax on the transfer of the net value of the assets of every resident decedent and the value of real and personal property of nonresident decedents located within this state.  The tax is apportioned in accordance with the location of the assets with actual situs (both real and persona property) in another state.  The fraction is Rhode Island assets over total estate assets.

The Rhode Island estate tax is designed to absorb the federal estate tax credit for state death taxes.  However, the state has decoupled from current federal estate tax laws and adopts the version of the Internal Revenue Code in effect on January 1, 2001.  The estate tax exemption is $892,650. Estates of decedents who are declared missing in action by the armed forces of the United States are not subject to the state’s estate tax.

For further information, visit the Rhode Island Division of Taxation site or call 401-222-1111.

SOUTH CAROLINA

Sales Taxes

State Sales Tax: 6% (prescription drugs and unprepared food items exempt); 25 counties impose an additional 1% local option sales tax; a number of counties impose a 2% sales tax or 3%.  Seniors 85 and older pay 5%.
Gasoline Tax: 35.2 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 41.2 cents/gallon (Includes all taxes)
Cigarette Tax: 57 cents/pack of 20

Personal Income Taxes

Tax Rate Range: Low – 3.0%; High – 7%; No tax on the first $2,630 of taxable income in tax year 2007.
Income Brackets: * Lowest – $2,850; Highest – $14,250
Number of Brackets: 6
Personal Exemptions: * Single – $3,700; Married – $7,400; Dependents – $3,700
Standard Deduction:  Single – $5,700; Married filing jointly – $11,400
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction:  None
Retirement Income Taxes: Retirement income is taxed. Social Security is exempt.   Under age 65, $3,000 in pension income is exempt.  If you are 65 or older you may exempt $15,000 of retirement income.  You can take this deduction for income received from any qualified retirement plan.  If both spouses receive retirement income, each spouse is entitled to an individual deduction. The $15,000 deduction must be offset by any other retirement deduction that is claimed.  A surviving spouse may continue to tacke a retirement deduction on behalf of the deceased spouse. Some taxpayers age 65 and older may not have to file a tax return if they meet certain conditions.  For more information,click here.
Retired Military Pay: Retirees with 20 or more years of active duty can deduct up to $3,000 annually until age 65 and up to $10,000 per year after age 65.  This deduction extends to the surviving spouse.  Pension or retirement income received for time served in the National Guard or Reserve components is not taxable.  Survivor benefits are taxed following 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 tax is assessed and collected by local governments.  Both real and personal property are subject to tax. The market value of a legal residence and up to 5 acres of surrounding land is assessed at 4%.  For homeowners 65 and older, the state’s homestead exemption allows the first $50,000 of their property’s fair market value to be exempt from local property taxes.  South Carolina imposes a casual excise tax of 5% on the fair market value of all motor vehicles, motorcycles, boats, motors and airplanes transferred between individuals.  For more information, click here.

Inheritance and Estate Taxes

There is no inheritance tax or estate tax..

For further information, visit the South Carolina Department of Revenue site or 800-763-1295.  If you are planning to move to South Carolina, click this link will provide you with some helpful information.
* State allows personal exemption or standard deductions as provided in the Internal Revenue Code.

SOUTH DAKOTA

Sales Taxes

State Sales Tax: 4% (prescription drugs exempt); municipalities may add up to an additional 2.75%.  Residents who are age 65 and older and have a yearly income of under $10,250 (single) or in a household where the total income was under $13,250 are eligible for a sales tax refund.
Gasoline Tax: : 40.4 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 48.4 cents/gallon (Includes all taxes)
Cigarette Tax: $1.53 cents/pack of 20

Personal Income Taxes

No state personal income tax
Retirement Income: Not taxed.

Property Taxes

Property is assessed at 85% of market value between counties.  Assessors determine the market value of property by using a combination of the following three approaches: (1) Cost approach whereby the assessor estimates the cost of replacing the property (structures), reduces that amount by its age (depreciation) and adds the value of the land.  (2) Market approach whereby the assessor compares the subject property to like properties that have recently been sold.  (3) Income approach in whereby the assessor uses the value of the projected income from a property to determine its value. For more information, click here.

Property taxes are assessed and collected by local government entities. A tax freeze and/or municipal property tax reduction is available for seniors age 65 and older, and disabled persons. Single homeowners 66 and older who earn $10,250 or less can get a refund of up to 35% of taxes paid.  Multi-person households headed by someone 66 and older, where the combined income is $13,250 or less, are eligible for a refund of up to 55% of taxes paid.  The state has several other property tax relief programs.  For details, click here and here.

There is a property tax exemption for disabled veterans.  Veterans that have been rated as permanently and totally disabled as the result of a service connected disability may be eligible for up to $100,000 of their property value to be exempt from property taxes.  Click here for details.

The state has a property tax homestead exemption that delays payment of property taxes until the property is sold.  Taxes are a lien on the property and must be paid along with 4% interest before the property can be transferred.  For a single person annual income must be less than $16,000.  For a multimember household, the limit is $20,000.  For more information click here.

For more information on all property taxes, click here or call 800-829-9188.

Inheritance and Estate Taxes

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

For further information, visit the South Dakota Department of Revenue site or call 800-829-9188.
* Tax rates to do not include local option tax of 1 cent.

TENNESSEE

Sales Taxes

State Sales Tax:  7% on tangible property (prescription drugs exempt); 6% on food and food ingredients.  Counties and cities may add another 1.5% to 2.75% to the total of either rate (click here).
Gasoline Tax: 39.8 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 42.8 cents/gallon (Includes all taxes)
Cigarette Tax: 62 cents/pack of 20; 77.5 cents/pack of 25

Personal Income Taxes

Salaries, wages, Social Security, IRAs and pension income are not taxed.  A 6% tax is levied on stock dividends and interest from bonds and other obligations.  The first $1,250 in taxable income received by a single filer is exempt ($2,500 for joint filers).  For details, click here.
Retirement Income Taxes: Beginning with tax year 2012, the annual Hall Income Tax standard income exemptions for taxpayers 65 years of age or older increases from $16,200 to $26,200 for single filers and from $27,000 to $37,000 for joint filers.
Retired Military Pay:  See 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

Property taxes are assessed and collected by the local governments.  County assessors of property appraise real estate for assessment purposes.  In addition, they assess tangible personal property used or held for use in a business.  The county commission and city governing bodies determine local property tax rates.  The property taxes are collected by county trustees and city collecting officials.

Tennessee does not have a homestead exemption.  However, there is a property tax relief program for the elderly, disabled and veterans.  Click here.

The assessed valuation of a property is based on 25% of its fair market value.  Depending on the location of the residence, homeowners will be assessed property taxes from the city only, the city and county, or the city, county, and a special school/fire district rate. A local government may authorize (at their option) a person who is 65 years of age or older to defer payment of tax up to $60,000 of the appraised fair market value of the homeowner’s residence if the combined income is not more than $12,000.  Local option could increase it to $25,000.  For more information, call 615-741-4883 or click here for an overview of the property tax freeze program.

Inheritance and Estate Taxes

There is an inheritance tax in which all real and personal property in which the decedent owned or has an interest is taxed.  It ranges from 5.5% to 9.5% of the value of the property transferred at death.  Spouses are exempt.  The estate tax is limited and related to federal estate tax collection. For more information, click here or call 615-532-6438.

For further information, visit the Tennessee Department of Revenue site or call 615-741-2837.
* Tax rates to do not include local option tax of 1 cent.

TEXAS

Sales Taxes

State Sales Tax: 6.25% (non-prepared food, prescription and non-prescription drugs exempt); local option taxes can raise the rate to 8.25%.
Gasoline Tax: 38.4 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 44.4 cents/gallon (Includes all taxes)
Cigarette Tax: $1.41 cents/pack of 20

Personal Income Taxes

No state personal income tax
Retirement Income: Not taxed.
Retired Military Pay:  Not taxed.
Military Disability Retired Pay: Disability Portion – Length of Service Pay: Member on September 24, 1975 – No tax; Not Member on September 24, 1975 – Taxed, unless combat incurred.  Retired Pay – Based solely on disability.  Member on September 24, 1975 – No tax.  Not Member on September 24, 1975 – Taxed, unless all pay based on disability, and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: 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 tax is imposed by local taxing units.  Click here for details.  For homeowners 65 and older, $10,000 (in addition to the regular $15,000 homestead exemption) of the property’s assessed value is exempt from school taxes and $3,000 is exempt from other local taxes.  Once an over-65 homeowner qualifies for an over-65 homestead exemption for school taxes, that owner gets a tax ceiling for that home on school taxes.  If the homeowner improves the home (other than normal repairs or maintenance), the tax ceiling is adjusted for the new additions.

For details on the homestead exemption for seniors, veterans and the disabled, click here.

School district taxes are frozen for seniors (65 and older) and disabled persons at the level imposed on the residence the first year that the taxpayer qualified for the residence exemption.  Counties, cities, towns, and junior college districts are permitted to establish a tax freeze on homesteads of those age 65 and older or disabled.

Inheritance and Estate Taxes

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

For further information, visit the Texas Comptroller of Public Accounts site.

UTAH

Sales Taxes

State Sales Tax:   4.70% (prescription drugs exempt); 1.75% on residential utilities;  2.75% on food and food ingredients; local option taxes may raise the total tax to 9.95%.
Gasoline Tax: 42.9 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 48.9 cents/gallon (Includes all taxes)
Cigarette Tax: $1.70/pack of 20

Personal Income Taxes

Tax Rate Range: Flat tax of 5% Click for details.
Personal Exemptions: ** Single – $2,850; Married – $5,700; Dependents – $2,850.  TThe Utah exemption amount is determined each year by multiplying the federal exemption amount by 75%.
Standard Deduction:  None
Medical/Dental Deduction:  Federal amount
Federal Income Tax Deduction:  Utah permits taxpayers to deduct one-half of the federal income tax liability as shown on their federal return for the same tax year.  The federal tax deduction is based on the tax calculated on their federal return, not on the amount of federal tax withheld by employers.
Retirement Income Taxes: Utah taxpayers may be able to claim a retirement tax credit on their Utah Individual Income Tax Return.  previously, an income exclusion was allowed taxpayers age 65 or over, and a deduction of retirement income received was allowed taxpayers under the age of 65.  A taxpayer who meets the following requirements may be able to claim a nonrefundable tax credit of up to $450: $900 for a married couple filing a joint return.  The credit will be phased-out for income that exceeds a certain amount.  For more information, click here.
Retired Military Pay: Up to age 65, individual can deduct up to $4,800 of qualified retirement; $7,500 at age 65 or older.  Deductions apply to survivor benefits.
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 Personnel & Their Spouses: Under a new federal law, earned income of the spouse of a nonresident active duty military service member is now exempt from Utah income tax.  The military income of the service member continues to be exempt from Utah tax, but the exemption now extends to the earned income of the non-military spouse

Property Taxes

Property taxes are assessed and collected locally.  The taxable value of tangible personal property and real property except residential property is assessed at 100% of its fair market value, less any exemptions that may be permitted.  Residential property owned by persons age 65 and over claiming tax abatement for the poor is assessed at 35% of fair market value.  The assessed valuation of a residential property is 55% of its fair market value.  The median rate is $1.30/$1,000.  Homeowners 66 and older who earn $29,210 or less can get a credit for property taxes paid up to $865, plus a credit equal to the tax on 20 percent of their property’s fair market value.  A circuit breaker tax credit for persons age 65 or over (or surviving spouse) permits an abatement or deferral of property taxes but the amount of the credit varies with household income and can apply to the portion of rent that goes to pay property taxes. There is also a veteran’s exemption.  This exemption is up to $232,312 taxable value of a residence, based on the percentage of disability incurred in the line of duty.  The exemption can also be applied toward tangible personal property, such as motor vehicles.  No exemption is allowed for any disability below 10%. Contact the Tax Commission at 801-297-3600 ext 3600 for details or click here and here.

Inheritance and Estate Taxes

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

For further information, visit the Utah State Tax Commission site or call  800-662-4335.

VERMONT

Sales Taxes

State Sales Tax: 6% (medical items, food, equipment and fuel, residential fuel and electricity, clothing and shoes with a purchase price of $110 or less, prescription and non-prescription drugs are exempt); Local jurisdictions may add an additional 1%.  Tax is 9% of prepared foods and restaurant meals and lodging.  10% on alcoholic beverages served in restaurants.
Gasoline Tax: 50.7 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 55.4 cents/gallon (Includes all taxes)
Cigarette Tax: $2.62/pack of 20

Personal Income Taxes

Tax Rate Range: Low – 3.55%; High – 8.95%  (Tax year 2013)  Click here for details.
Income Brackets: **Lowest – $36,250; Highest – $398,350
Number of Brackets: 5
Personal Exemptions: Single – $3,900; Married – $7,800; Dependent – $3,900
Standard Deduction: Federal amount
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: None
Retirement Income Taxes: No exemptions, except for Railroad Retirement benefits.  Out-of-state government 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.
Vermont Tax Guidelines for Military Personnel: Click here.

Property Taxes

Real estate taxes have two components; school property tax and municipal property tax.  Both taxes are billed and collected by the town or city where the real estate is located.

A statewide education tax is imposed on all nonresidential and homestead property at the following rates:  (1) the tax rate for nonresidential property is approximately $1.44 per $100.00; and (2) the tax rate for homestead property is approximately $0.92 multiplied by the district spending adjustment for the municipality, per $100.00, of equalized education property value.  The homestead property tax rate for each municipality which is a member of a school district is calculated under subsection “e” of state statute section 5405.  For rates by town, click here.

A Homestead Declaration is no longer required to be filed each year.  The declaration filed in 2010 and 2011 remains on record until the homestead is sold or there is a change in the use of the homestead.

The Municipal Property Tax is based on the town’s grand list and is used to fund the town’s services.  The rate varies in each town depending on the funds needed to operate municipal services.  Eligible Vermont residents can make a claim for a rebate of their school and municipal property taxes if household income does not exceed a certain level.  Generally, household incomes of $97,000 or more do not receive an adjustment.  Maximum property tax adjustment for 2010 is $8,000.   The rebate refunds the difference between a percentage of the claimant’s household income and the eligible taxes.  Eligible taxes are combined school and municipal property taxes less the education property tax payment.  There is a property tax exemption for veterans.  The first $10,000 (may be increased to up to $40,000 by a vote of the town) of appraisal value of the established residence of a qualifying veteran, his or her surviving spouse or child is exempt if: (a) the residence is owned in fee simple by one or jointly by a combination of them, and, a written application for the exemption is filed before May 1 of each year.  For more information, click here.

Inheritance and Estate Taxes

Although Vermont does not have an inheritance tax, it has an estate tax.  Vermont Estate Tax Return must be filed if the decedent had Vermont income and filed U.S. Estate Tax Return. Federal estate tax returns are required when an estate exceeds specified gross estate values.  In 2009, estates valued at more than $2.75 million will have to pay a tax.

For further information, visit the Vermont Department of Taxes site or call 802-828-2865.

VIRGINIA

Sales Taxes

State Sales Tax: 4.30%  The general sales tax rate for Virginia is 5.3 percent (4.3 percent state tax and 1 percent local tax).  There is an additional 0.7 percent state tax imposed in the localities that make up Northern Virginia and Hampton Roads, making the rate in these areas 6 percent (5 percent state tax and 1 percent local tax).  Sales of eligible food items are subject to a reduced sales tax rate of 2.5 percent (1.5 percent state tax and 1 percent local tax).
Gasoline Tax: 38.5 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 44.6 cents/gallon (Includes all taxes)
Cigarette Tax: 30 cents/pack of 20

Personal Income Taxes

Tax Rate Range: Low – 2.0%; High – 5.75%
Income Brackets: Lowest – $3,000; Highest – $17,000
Number of Brackets: 4
Personal Exemptions: Single – $930; Married – $1,860; Dependents – $930 Does not include exemptions for age or blindness.
Standard Deduction: Single – $3,000; Married filing jointly – $6,000
Medical/Dental Deduction: Partial. Individuals may deduct long-term health care insurance premiums, provided the premiums have not been deducted for federal income tax purposes. The premiums must be paid specifically for a long-term health care policy.  The amount to be subtracted is the cost of long-term health care insurance premiums that has not been deducted on your federal return. The Livable Home Tax Credit applies to purchases of supplies and other items needed to retrofit existing housing or incorporate into new construction to improve accessibility and/or visitability, and meets the eligibility guidelines established by the Virginia Department of Housing and community Development.  The credit, which is limited to $2,500 per taxable year, was not previously allowed for new construction.
Federal Income Tax Deduction: None
Retirement Income Taxes: A Virginia Age Deduction allows an exemption for each of the following: Each filer who is age 65 or over by January 1 may claim an additional exemption.  When a married couple uses the Spouse Adjustment Tax, each spouse must claim his or her own age exemption.  Each filer who is considered blind for federal income tax purposes may claim an additional exemption.  When a married couple uses Spouse Adjustment Tax, each spouse must claim his or her own exemption for blindness.

Individuals who are age 64 by midnight, January 1, 2006 may claim a subtraction of $6,000 on their income tax returns.  Individuals who are age 65 or over by midnight January 1, may be eligible to claim a subtraction of up to $12,000.  You may not claim the age deduction if you claim the Disability Income subtraction.

Virginia law exempts Social Security and Tier 1 Railroad Retirement benefits from taxation.  If you were required to include any of your benefits in federal adjusted gross income, subtract that amount on your Virginia return.

If you, or your spouse were born on or before January 1, 1947, you may qualify to claim an age deduction of up to $12,000 each for 2011.  The age deduction you may claim will depend upon your birth date, filing status and income.  If your birth date is on or before January 1, 1939, you may claim an age deduction of $12,000.  If you are married, each spouse born on or before January 1, 1939, may claim a $12,000 age deduction.  For individuals born after January 1, 1939, the age deduction is based on the following criteria: If your birth date is on or between January 2, 1939, and January 1, 1947, your age deduction is based on your income.  A taxpayer’s income, for purposes of determining an income-based age deduction is the taxpayer’s adjusted federal adjusted gross income or “AFAGI”  A taxpayer’s AFAGI is the taxpayer’s federal adjusted gross income, modified for any fixed date conformity adjustments, and reduced by any taxable Social Security and Tier 1 Railroad Benefits.  For filing Status 1, Single Taxpayer, the maximum allowable age deduction of $12,000 is reduced $1 for every $1 the taxpayer’s AFAGI exceeds $50,000.  For all married taxpayers whether filing jointly or separately, the maximum allowable age deduction of $12,000 each is reduced $1 for every $1 the married taxpayers’ joint AFAGI exceeds $75,000.
Retired Military Pay: Follows federal tax rules.  Military retirement income received by those awarded the Medal of Honor can be subtracted from federal gross income for tax purposes.
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 are administered by the state’s cities, counties and towns and are based on 100% of fair market value.  Tangible personal property is also taxed at the local level and is based on a percentage of the original cost.  A county, city, or town may enact a program for senior citizens and disabled persons allowing for exemption, deferral (or a combination of both) for property taxes on realty and manufactured homes owned and occupied as the sole dwelling of a person 65 years of age or older.  Annual family income is generally limited to $50,000, but may be higher in certain Northern Virginia communities.  Net worth limits may apply.  Local tax officials should be contacted.  There are no adjustments at the state level.

Inheritance and Estate Taxes

There is no inheritance tax. The estate tax has been repealed for the estates of decedents whose date of death occurs on or after July 1, 2007.

For further information, visit the Virginia Department of Taxation site or call 804-367-367-8031.
* Tax rates to do not include local option tax of 2%.

WASHINGTON

Sales Taxes

State Sales Tax: 6.5% (food and prescription drugs exempt) Local taxes may increase total tax to 9.5%.  Tax is 6.8% on sales and leases of motor vehicles.
Gasoline Tax: 55.9 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 61.9 cents/gallon (Includes all taxes)
Cigarette Tax: $3.025/pack of 20

Personal Income Taxes

No state personal income tax
Retirement Income: Not taxed.

Property Taxes

Property taxes account for about 30% of Washington’s total state and local taxes.  Properties are appraised at 100% of fair market value.  A property tax exemption program is available for persons age 61 or older, or persons unable to work due to a physical disability.  The property, which can include up to an acre of land, must be owner/buyer occupied.

The state offers a senior property tax exemption program for those whose household income does not exceed $35,000.  If your income is between $35,000 and $40,000, you may qualify for the tax deferral program.  If your annual income for the application year does not exceed $35,000 your home will be exempt from all excess and special levies approved by voters.  If your household income is between $25,001 and $30,000, you are exempt from regular levies on $50,000 or 35% of the assessed value, whichever is greater (but not more than 70,000 of the assessed value. For more information, call 360-570-5867.  For senior exemptions and deferrals, click here.

The state’s tax deferral program works in conjunction with the exemption program.  A senior citizen or disabled person may defer property taxes or special assessments on their residence if they meet certain age, disability, ownership, occupancy and income requirements.  The state pays the taxes on behalf of the claimant and files a lien on the property to indicate the state has an interest in the property.  The deferred taxes must be repaid to the state plus 5% interest when the owner dies, sells or moves from the home, or doesn’t have sufficient equity in the property.  Qualified people may participate in both or one of these programs. For more information, click here.

For information on the property tax deferral program for homeowners with limited income, click here.

For information on the property tax deferral program for seniors and disabled persons, click here.

For information on property tax exemptions for senior citizens and disabled persons, click here.

For more details on property taxes, click here or call 800-647-7706.

Inheritance and Estate Taxes

Washington replaced the inheritance tax in 1982 with an estate tax.  Effective January 1, 2009 the Washington State filing threshold is different from the federal filing threshold for completing the estate tax return.  If the decedent has a gross estate or a taxable estate plus taxable gifts of $2,000,000 or more, the estate is required to file a Washington State estate tax return.

For further information, visit the Washington Department of Revenue site or call 800-647-7706.

WEST VIRGINIA

Sales Taxes

State Sales Tax:  6% (prescription drugs exempt).  Food taxed at 1%.  Seniors age 60 and older are eligible for the Golden Mountaineer Discount Card that can be used for pharmaceutical discounts, retail and professional discounts.  Some municipalities may add a local sales tax of up to 1%.  To apply or obtain more information, call 304-558-3317 or 877-987-3646.
Gasoline Tax:  53.1 cents/gallon (Includes all taxes)
Diesel Fuel Tax:  59.15 cents/gallon (Includes all taxes)
Cigarette Tax: 55 cents/pack of 20

Personal Income Taxes

Tax Rate Range:  Low – 3%; High – 6.5%
Income Brackets: * Lowest – $10,000; Highest – $60,000
Number of Brackets: 5
Personal Exemptions: Single – $2,000; Married – $4,000; Dependents – $2,000
Standard Deduction: None
Medical/Dental Deduction: For tax year 2007, if you had no employer and were not self-employed, you may claim as a subtraction from income 33.4% of the amount you paid for medical care insurance. If you had an employer or were self-employed, you may be able to claim a subtraction from income for the amount you paid for medical insurance.  It does not include long-term care insurance.
Federal Income Tax Deduction: None
Retirement Income Taxes: The beginning point for West Virginia taxation is federal adjusted gross income.  Therefore, any amount of the IRA distribution or pension income that is taxable and included in federal adjusted gross income is taxable on the West Virginia income tax return.  $2,000 of civil, and state pensions are exempt.  Social Security income is taxable only to the extent that the income is includable in your federal adjusted gross income. Taxpayers 65 and older or surviving spouses of any age may exclude the first $8,000 (individual filers) or $16,000 (married filing jointly) of any retirement income.  Out-of-state government pensions qualify for the $8,000 exemption.  An individual, regardless of age, may deduct up to $2,000 of benefits received from the West Virginia Teachers Retirement System, West Virginia Employees Retirement System, and military and federal retirement systems.
Retired Military Pay: First $2,000 is exempt (see above).  Military retirees are able to take an additinal decreasing modification for military retirement up to $20,000.
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 tax is administered by county officials and officials of several state government agencies.  Although the Department of Tax and Revenue plays a major role in the administration of this tax, less than one-half of one percent of the property tax collected goes to state government.  The primary beneficiaries of the property tax are county boards of education.  Property taxes are paid to the sheriff of each of the state’s 55 counties.  Each county and municipality can impose its own rates of property taxation within the limits set by the West Virginia Constitution. Property is assessed at 60% of fair market value.

The West Virginia legislature sets the rate of tax of county boards of education.  This rate is used statewide by all county boards of education.  However, the total tax rate for county boards of education may differ from county to county due to excess levies.  The total tax rate is a combination of the tax levies from four state taxing authorities: state, county, schools, and municipal.  This total tax rate varies for each of the four classes of property, which consists of personal, real , and intangible properties.  Property is assessed according to its use, location, and value as of July 1.  The amount of property tax paid depends on the following factors: the assessed property value as determined by a county assessor, and the tax rate levied against each $100 of the property’s assessed valuation.  The assessed value of the property must be 60 percent of the property’s true and actual value, which is defined as the amount of money the property would be worth in a sale.  For more information on property taxes, click here.

Senior citizens eligible for the Homestead Exemption Program may be entitled to a Senior Citizen Tax credit.  The credit is based on the amount of property taxes paid on the first $10,000 or portion thereof, of the taxable assessed value over the $20,000 Homestead Exemption.  The credit is based on the amount of property taxes paid on the first $20,000, or portion thereof, of the taxable assess value over the $20,000 Homestead Exemption.  Taxpayers who pay the federal alternative minimum tax cannot claim this credit.

Seniors who are 65 or older and who experience a property tax increase of at least $300 on their owner-occupied West Virginia home over the past year may qualify for the Senior Citizen property Tax Deferment if their income was no more than $35,000.  The credit must be approved by your county assessor’s office.

The state’s homestead Excess Property Tax Credit is a refundable personal income tax credit for real property taxes paid in excess of your income.  The maximum refundable tax credit is $1,000.

For more information on the above, click here and here.

Inheritance and Estate Taxes

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

For further information, visit the West Virginia State Tax Department site or call 304-558-3333 or 800-982-8297.  Also visit the West Virginia Department of Revenue.

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

WISCONSIN

Sales Taxes

State Sales Tax:  5% (food and prescription drugs exempt).  Most counties have adopted a 1.5% sales tax which is added to the state tax.
Gasoline Tax:  51.3 cents/gallon (Includes all taxes)
Diesel Fuel Tax:  57.3 cents/gallon (Includes all taxes)
Cigarette Tax: $2.52 cents/pack of 20

Personal Income Taxes

Tax Rate Range:  * Low – 4.6%; High – 7.75%.
Income Brackets:  Lowest – $10,750; Highest – $236,660
Number of Brackets:  6
Personal Exemptions:  Single – $700; Married – $1,400; Dependents – $700; 65 or older – $1,000.
Additional Exemption: Each taxpayer and spouse over 65 – $250
Standard Deduction:  To view various tax tables, including standard deduction, click here.
Medical/Dental Deduction:  5% credit for expenses in excess of standard deduction.  Click here for details.
Federal Income Tax Deduction:  None
Retirement Income Taxes: Generally the same amount of your pension and annuity income that is taxable for federal tax purposes is taxable by Wisconsin.   Social Security and Railroad Retirement benefits are not taxable.  Certain Wisconsin state and local government retirees qualify for a tax exemption.  Out-of-state government pensions are fully taxed.  All retirement payments from the U.S. military employee retirement system, the Coast Guard, the commissioned corps of the National Oceanic and Atmospheric Administration and the Public Health Service are exempt.  Retired persons whose income is less than $10,000 ($19,000 if married filing a joint return) are also eligible for a “working families tax credit.”  This credit reduces or completely eliminates the Wisconsin income tax for persons, including retirees, who are full-year residents of Wisconsin.  It is not necessary that you be employed, or that you have more than one person in your household, in order to claim this credit.  For more details, click here and here.

Individuals who receive income from a qualified retirement plan or an individual retirement account (IRA) may be able to subtract up to $5,000 of such retirement benefits when computing their Wisconsin income tax.  To qualify for the subtraction the individual must be at least 65 years of age before the close of the taxable year for which the subtraction is being claimed, and meet the following income limitations for that year.  If the individual is single or files as head of household, his or her federal adjusted gross income is less than $15,000.  If the individual is married and files a joint return, the couple’s federal adjusted gross income is less than $30,000.  If the individual is married and files a separate return, the sum of both spouses’ federal adjusted gross income is less than $30,000.

The subtraction does not apply to retirement benefits that are otherwise exempt from Wisconsin income tax.  For example, an individual is receiving military retirement benefits that are exempt from Wisconsin income tax.  The individual may not claim the $5,000 subtraction based on the military retirement benefits.  Individuals who will qualify for the subtraction may want to consider the subtraction when determining the amount of their estimated tax payments.
Retired Military Pay: All military retirement pay is exempt.
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

Homeowners and renters whose household income is less than $24,680 can benefit from the homestead credit program that is designed to soften the impact of property taxes on persons with low income.  The credit is based on the relationship of household income to the amount of allowable property taxes and/or rent for the calendar year.  Wisconsin also has a school property tax credit that is available to homeowners.  It is actually a credit against Wisconsin income tax liability.  Details on the state’s property tax system can be found here.  For information on the Homestead Credit, click here.

Inheritance and Estate Taxes

There is no inheritance tax but Wisconsin does have an estate tax.

As a result of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, approved by Congress and signed into law by President Obama on December 17, 2010, there is no Wisconsin estate tax for deaths in 2011 and 2012 unless action is taken by the Wisconsin Legislature to impose an estate tax.  A federal estate tax is imposed on estates of $5,000,000 or more.  The credit for state death taxes paid has been eliminated for deaths in 2011 and 2012, which would have been the basis for Wisconsin’s estate tax.  The Act allows a deduction for state death taxes paid.  On January 1, 2013, EGTRRA (Economic Growth and Tax Relief Reconciliation Act) sunset provisions would again apply with federal or state legislative action necessary to eliminate the Wisconsin estate tax for 2013.

For further information, visit the Wisconsin Department of Revenue site or call 608-266-2772.  For specific retiree information, click here.
* The tax brackets reported are for single individuals.

WYOMING

Sales Taxes

State Sales Tax: 4% (prescriptions and food for home consumption exempt); counties have the option of adding up to 4% in additional taxes.  There is a county lodging tax that varies from 2% to 4% and is added to the other sales taxes.
Gasoline Tax: 42.4 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 48.4 cents/gallon (Includes all taxes)
Cigarette Tax: 60 cents/pack of 20

Personal Income Taxes

No state personal income tax
Retirement Income Taxes: Not taxed, including that received from other states.

Property Taxes

Tax rates are set by the various political entities with the legal power to levy taxes.  These governmental entities include counties; school districts; cities and towns; and special taxing districts, such as water and sewer districts and cemetery districts.  Once the taxing entities have adopted their budgets and tax rates, the tax rates cannot be appealed.  However, obvious factual errors may still be corrected by the county.  Your tax notice indicates the amount you pay to each taxing entity.

Wyoming is a “fractional assessment” state.  This means their property tax applies to only a fraction of the full market value of property.  This fraction is the property’s assessed value.  For most property, only 9.5% of market value is subject to tax.  Consequently, a home worth $100,000 on the market is only taxed on $9,500 in assessed value.  The real effect of fractional assessments is to exempt $90,500 of the home’s value from taxation.  Citizens are legally protected from counties and municipalities increasing property tax rates.  For county revenue, the rate is limited to 8 mills (.8%).  With very few exceptions, state law limits the property tax rate for all governmental purposes.  All Wyoming citizens benefit from property tax exemptions.  Personal property held for personal use is tax exempt.  Inventory, pollution control equipment, cash, accounts receivable, stocks, and bonds are also exempt.

The state has several property tax relief/credit/deferral programs.  If the value of certain assets (bank accounts, investments, real estate other than house, and motor vehicles in excess of one per household member) exceed $101,900, a resident cannot qualify.

To be eligible for the main property tax relief program one must have a house hold income less than the greater of half the state or county median household income, and have other assets totaling less than $101,900 (see above).  By meeting the eligibility rules, the tax relief is up to one-half of the median residential property tax or one-half of the property tax bill, whichever is less.  For more information, click here.

There is a Veteran’s Property Tax Exemption for those who qualify.  A person must be honorably discharged as a veteran of WWI, WWII, Korea, or Viet Nam.  Surviving spouses of qualifying veterans and certain disabled veterans may be eligible for the exemption.  The amount of relief is $3,000 of assessed value against real personal property.  The exemption is limited to $800 in total tax benefits.  A surviving spouse may continue to collect benefits until he or she remarries.  For more information, click here.

The state has a Tax Rebate to Elderly and Disabled Program that is available to those age 65 and older who meet certain income requirements.  They can receive a refund from the Wyoming Department of Health on property tax, utilities, and sales/use tax up to $700 (single) and $800 (married).    For details on property tax relief programs, click here.  Call 307-777-5235 for details. For general information on property tax and relief programs, click here.

Inheritance and Estate Taxes

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

For more information, visit the Wyoming Department of Revenue site or call 307-777-5287.

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