Taxes by State
Please choose a State: New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont,Virginia, Washington, West Virginia, Wisconsin, Wyoming
This guide includes state taxes that affect retirement income, like sales and property tax. You’ll also learn how each state taxes retirement benefits. We also provide state tax rates for inheritance and estate taxes and retirement-related tax breaks.
This section covers taxes in New York through Wyoming. See Retirement Taxes by State for information from other states.
The following applies to all state retirement taxes:
- VA Disability Dependency and Indemnity Compensation are not subject to federal or state taxes. Military disability benefits are not taxable.
- Military SBP/SSBP/RCSBP/RSFPP are typically subject to state taxes except where states have no income tax. Check with the state department of revenue office for specific information.
For current personal state income tax rates and tax brackets, visit The Tax Foundation.
NEW YORK
Sales Taxes
State Sales Tax: 4.0% (food, prescription and over-the-counter drugs exempt). Cities and counties may add up to 4.875% in additional sales tax. Gasoline Tax: $0.1735/ gallon (Includes all taxes) Diesel Fuel Tax: Between $0.157 and $0.173/gallon (Includes all taxes) Cigarette Tax: $4.35/pack of 20; New York City adds $1.50Personal Income Taxes
Individual Taxes (Married Couple, combined income of 75,000): 6.33% Effective Tax Rate: 5.65% Social Security: Not taxed Medical/Dental Deduction: Federal amount Federal Income Tax Deduction: None Retirement Income Taxes: Social Security retirement benefits are tax exempt in New York. Military, civil service and New York state or local government pensions are exempt. The state also exempts up to $20,000 from qualified private pensions for those 59½ and older. Out-of-state government pensions are deductible as part of the $20,000 exemption. For more information on senior citizen and retiree benefits, see New York Publication 36. Retired Military Pay: Military pensions are tax exempt in New York state.Property Taxes
The average effective property tax rate in New York is 1.72%, or $5,407 on a $313,700 median value home. Local governments and public school districts have the option of reducing property taxes for qualified senior citizens. Seniors must be aged 65 or older and meet income limitations and other requirements. Each municipality or school district may set the maximum income limit between $3,000 and $29,000 for a 50% assessed value break. Localities can also allow a less than 50% exemption to seniors with annual income over $29,000. This sliding-scale option allows taxpayers with a yearly income as high as $37,399.99 to get a 5% exemption in places that use the maximum limit. For more information, see the New York State property tax page. A taxpayer’s primary residence may be partially exempted from school taxes under the New York’s School Tax Relief Program (STAR) program. Seniors can take advantage of this program for a partial exemption from school property taxes. All New Yorkers who own and live in a one- to three-family home, condominium, cooperative apartment, manufactured home or farm dwelling are eligible for a STAR exemption on their primary residence. There are two STAR exemptions. Both are based on income equal to federal adjusted gross income minus the taxable amount of total distributions from annuities or IRAs. The property must be the primary residence, and married couples can only use STAR on one property.- The Basic STAR exemption is available for owner-occupied, primary residences regardless of the owners’ ages or incomes. The combined household income must be under $500,000.
- The Enhanced STAR exemption is available for the primary residences of senior citizens age 65 and older. The yearly household income must not exceed the statewide standard. All owners must be 65 or older by the end of the calendar year in which the exemption begins or be the spouse or sibling of an owner who is 65 or older. The combined income of all owners and resident owners’ spouses must be $88,050 or less. This amount increases to $90,550 for 2021.
Inheritance and Estate Taxes
There is no inheritance tax in New York. The estate state tax ranges from 3.06% to 16%. The state provides a $5,850,000 basic exclusion amount for deaths on or after January 1, 2020, and before January 1, 2021. The basic exclusion amount ranged from $2,062,500 to $5,740,000 in previous years. The estate of a New York resident must file an estate tax return if the deceased’s federal gross estate plus any includable gifts exceed the basic exclusion amount at the time of death. Different rules are in place for those who died on or after February 1, 2000, and before April 1, 2014. For more information, see New York estate tax rules or visit the New York Department of Taxation and Finance site.NORTH CAROLINA
Sales Taxes
State Sales Tax: 4.75%. Prescription drugs and medical equipment exempt. Food is subject to a 2% county tax. Counties may also add up to 2.75% tax. Gasoline Tax: $0.385/gallon (Includes all taxes) Diesel Fuel Tax: $0.385/gallon (Includes all taxes) Cigarette Tax: $0.45/pack of 20Personal Income Taxes
Individual Taxes (Married Couple, combined income of 75,000): 5.25% Effective Tax Rate: 4.50% Social Security: Not taxed Medical/Dental Deduction: Federal amount. North Carolina has an income tax credit for premiums paid on long-term care insurance covering the individual, a spouse or dependent. The credit is equal to 15% of the premium cost not to exceed $350. Federal Income Tax Deduction: None Retirement Income Taxes: Social Security is exempt. All other forms of retirement income are taxed at the North Carolina flat income tax rate of 5.25%. Although the state taxes retirement benefits, the standard deduction is $8,750 for single filers, $17,500 for joint filers and $14,000 for heads of household. Retired Military Pay: Exempt if the retiree had five years of creditable service as of August 12, 1989. Others may be allowed to exclude $4,000 of military retirement pay from income or $8,000 if married filing jointly.Property Taxes
All property, real and personal, is subject to taxation and assessed based on 100% appraised value. Cities and counties collect property taxes at an average rate of 0.84%, or $1,454 on a $172,500 home—the state’s median home value. People age 65 or older or who are completely and permanently disabled qualify for an exclusion based on a portion of the appraised property value. The qualifying income typically raises from year to year and is currently set at $33,800 or less. The greater of $25,000 or 50% of the residence appraised value may be excluded from taxes. Gifts or inheritances from a spouse or immediate family member do not count as income. North Carolina’s Circuit Breaker Property Tax Deferment Program limits taxes for each year to a percentage of income. The qualifying owner must either be at least 65 years of age or totally and permanently disabled. The Current income limit is $33,800. Property owners with income over that amount but not exceeding 150% of the eligibility limit ($50,700 for 2021) will pay taxes equal to 5% of income. See North Carolina Property Taxes for more information.Inheritance and Estate Taxes
North Carolina has no estate or inheritance tax. For further information, visit the North Carolina Department of Revenue site.NORTH DAKOTA
Sales Taxes
State Sales Tax: 5% (food and prescription drugs exempt) and 7% on alcoholic beverages. Cities or counties which have adopted home rule charters may levy additional sales and use taxes up to 3.5%. Gasoline Tax: $0.230/gallon (Includes all taxes) Diesel Fuel Tax: $0.230/gallon (Includes all taxes) Cigarette Tax: $0.44/pack of 20Personal Income Taxes
Individual Taxes (Married Couple, combined income of 75,000): 2.27% Effective Tax Rate: 1.89% Social Security: Not taxed Medical/Dental Deduction: Full Federal Income Tax Deduction: None Retirement Income Taxes: Taxpayers can exclude $5,000 of pension income from military, civil service, some state or local government and qualified plans. The exclusion is reduced by the amount of Social Security income received. North Dakota fully taxes out-of-state government pensions. Retired Military Pay: 100% of military retirement income is exempt from North Dakota state income tax.Property Taxes
All North Dakota real property is subject to tax by the state, counties, townships and municipalities. The effective tax rate for North Dakota residential property is 0.98%, or $1,906 on a $193,900 home. Mobile homes used as a residence or place of business are subject to a property tax. North Dakota’s Homestead Tax Credit is available to those aged 65 or older or disabled persons who own or rent their home. Total annual household income, including from a spouse and any dependents, must be $42,000 or less for the calendar year. Assets may not exceed $500,000 over the past three years. Eligible seniors receive a property tax credit equal to 10% to 100%, up to a maximum of $5,625. See North Dakota Tax Refunds, Exemptions and Credits for more information.Inheritance and Estate Taxes
North Dakota has no state inheritance or estate 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.OHIO
Sales Taxes
State Sales Tax: 5.75% (food, newspapers, magazine subscriptions, telephone service and prescription drugs exempt). Counties levy additional sales taxes, which may add up to 2.25% to the sales tax. Gasoline Tax: $0.385/gallon (Includes all taxes) Diesel Fuel Tax: $0.385/gallon (Includes all taxes) Cigarette Tax: $1.60/pack of 20Personal Income Taxes
Individual Taxes (Married Couple, combined income of 75,000): 3.80% Effective Tax Rate: 3.56% Social Security: Not taxed Medical/Dental Deduction: None Federal Income Tax Deduction: None Retirement Income Taxes: The Ohio Retirement Income Credit provides a tax credit for retirement and pension income up to $200 annually. Either spouse must be 65 years old, and adjusted gross income less exemptions must be under $100,000 based on the distribution amount reported on Form 1099-R. The credit is not applicable for loans against retirement plans or rollovers. Retired Military Pay: Taxpayers who retired from service in the active or reserve components of the U.S. Army, Navy, Air Force, Marine Corps, Coast Guard or the National Guard can deduct their military retirement income. This rule does not apply if the income is otherwise deducted or excluded when computing federal or Ohio adjusted gross income. Taxpayers who served in the military and receive a federal civil service retirement pension can deduct the amount of this pay attributable to their military service. Ohio provides more information on the state’s Military Income Taxes page.Property Taxes
The average effective property tax rate in Ohio is 1.56%, but the amount varies by municipality. Some agricultural land may be assessed at a different percentage. County auditors reappraise all real estate every six years. Generally speaking, you’ll pay $2,271 for a $145,700 home—the state’s median home value. The Ohio Homestead Exemption is available to 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 previously received the exemption. The Homestead Exemption is limited to the owner’s dwelling and up to 1 acre of land. The value of the exemption may not exceed the value of the homestead. The 2022 income threshold is $34,600, and that amount is adjusted annually. For more details, see Ohio Taxes.Inheritance and Estate Taxes
Ohio does not have an estate tax or an inheritance tax. For further information, visit the Ohio Department of Taxation site.OKLAHOMA
Sales Taxes
State Sales Tax: 4.50% (prescription drugs are exempt). County and local tax rates vary for a total sales tax of up to 7%. The average Oklahoma sales tax is around 9%. Gasoline Tax: $0.19/gallon (Includes all taxes) Diesel Fuel Tax: $0.16/gallon (Includes all taxes) Cigarette Tax: $2.03/pack of 20Personal Income Taxes
Individual Taxes (Married Couple, combined income of 75,000): 5% Effective Tax Rate: 4.44% Social Security: Not taxed Medical/Dental Deduction: Federal amount, but disallowed if you take the standard deduction. Federal Income Tax Deduction: None Retirement Income Taxes: Oklahoma does not usually tax Social Security benefits. If you receive income in addition to Social Security in the tax year, benefits may be partially taxable depending on your income level. Taxpayers may exclude up to $10,000 in retirement benefits up to the amount included in federal adjusted gross income. The retirement benefits must be from an employee pension benefit plan, eligible deferred compensation plan, individual retirement account, annuity or trust, or simplified employee pension under IRC section 408, an employee annuity, United States Retirement bonds under IRC section 86 or lump-sum distributions from a retirement plan under IRC section 402(e). Retired Military Pay: An individual may exclude the greater of 75% of their retirement benefits or $10,000. This amount cannot exceed federal adjusted gross income. The retirement benefits must be from any component of the Armed Forces of the U.S.Property Taxes
The average effective property tax rate in Oklahoma is 0.90%, with a median annual tax assessment of around $1,228 on a $136,800 property. Oklahoma offers a homestead exemption to reduce the property’s assessed value by $1,000. The exemption results in tax savings from $87 to $134. Taxpayers qualify for an additional $1,000 exemption if annual gross household income is under $20,000, and they meet all Homestead Exemption requirements. A $200 Oklahoma property tax rebate is available if you are 65 or older or totally disabled and have an income of $12,000 or less. Disabled veterans are 100% exempt from property tax. Veterans and the surviving spouse of a veteran may also qualify for a property tax exemption. Senior citizens with a household income of $73,200 or less may qualify for a valuation freeze on their primary residence. A valuation freeze means property tax will not increase based on the value of other homes in the neighborhood. The amount of qualifying income depends on the Federal Department of Housing and Urban Development’s estimate of median family income. For more information on Oklahoma property taxes, read Taxpayers’ Rights, Remedies and Responsibilities.Inheritance and Estate Taxes
There is no inheritance or estate tax in Oklahoma. For further information, visit the Oklahoma Tax Commission site.OREGON
Sales Taxes
State Sales Tax: None Gasoline Tax: $0.38/gallon (Includes all taxes) Diesel Fuel Tax: $0.38/gallon (Includes all taxes) Cigarette Tax: $3.33/pack of 20Personal Income Taxes
Individual Taxes (Married Couple, combined income of 75,000): 9.90% Effective Tax Rate: 9.59% Social Security: Not taxed Medical/Dental Deduction: Health care expenses are deductible in Oregon up to the amount that exceeds 7.5% of federal adjusted gross income. Taxpayers may include medical expenses from a spouse or dependents listed on the Oregon tax return if they earned under $4,200. Oregon allows a tax credit on long-term care insurance premiums. The credit is the 15% of premiums paid or $500, whichever is less. Federal Income Tax Deduction: Oregon’s federal tax subtraction limit in 2021 was $7,050 ($3,525 if married filing separately). This amount gets adjusted annually and may be affected by restrictions on adjusted gross income (AGI). See “Federal income tax liability” in Publication OR-17. Retirement Income Taxes: Aside from Social Security, Oregon taxes most retirement income at the top rate. This is true even if you were a nonresident when you earned the income. However, the Oregon Retirement Income Credit allows for a credit of up to $6,250, depending on household income and other qualifications. Pension income from federal employment before October 1, 1991, may be subtracted from income on Oregon state tax returns. This rule applies to retirees and their beneficiaries. See the State of Oregon tax publications for more information. Retired Military Pay: Military retirees may be able to subtract some or all federal pension income. This includes benefits paid to the surviving spouse. Retirees can subtract their entire federal pension if all federal service months occurred before October 1, 1991. Those who did not serve before October 1, 1991, cannot subtract federal pension. If service included months before and after October 1, 1991, a pension income percentage is eligible for subtraction.Property Taxes
Oregon’s effective property tax rate is 0.97%. The median home value of $312,200 comes with an average annual tax of $3,037. The Oregon Homestead Exemption allows an exemption up to $40,000 of the value of real property or a floating, manufactured or mobile home. Married couples are eligible for up to $50,000. Owners of homesteads located outside of town or city limits may protect up to 160 acres, otherwise up to 1 city block may be protected. Oregon offers the Property Tax Deferral for Disabled and Senior Citizens Program for qualified taxpayers who owned and lived in their home for at least five years. Homeowners must be 62 or older or disabled and receiving or eligible to receive federal Social Security Disability. Taxes and 6% interest become due when the taxpayer receiving the deferral dies, sells or no longer permanently lives on the property or the property changes ownership. Taxpayer total household income must be less than $51,000 for the year before application to qualify for the deferral program. Participants may remain on the program as long as their federal adjusted gross income does not exceed that amount. If their income exceeds 51,000, part of the taxes still may be deferred. Participants can come in and out of the programs if their income changes. Residents must have a net worth under $500,000 to qualify for the Property Tax Deferral for Disabled and Senior Citizens Program. Visit the Oregon Department of Revenue website for more information.Inheritance and Estate Taxes
Oregon’s estate tax is levied on estate amounts over $1 million. The rate spans from 10% to 16%. For further information, visit the Oregon Department of Revenue website.PENNSYLVANIA
Sales Taxes
State Sales Tax: 6% (groceries, clothing, textbooks, heating fuels, and prescription and over-the-counter drugs are exempt). Other taxing entities may add up to 2%. Gasoline Tax: $0.576/gallon (Includes all taxes) Diesel Fuel Tax: $0.741/gallon (Includes all taxes) Cigarette Tax: $2.60/pack of 20Personal Income Taxes
Individual Taxes (Married Couple, combined income of 75,000): 3.07% Effective Tax Rate: 3.07% Social Security: Not taxed Medical/Dental Deduction: None Federal Income Tax Deduction: None Retirement Income Taxes: All retirement income is tax exempt for Pennsylvania residents aged 60 and older. This income includes public and private pensions, Social Security income, United Mine Workers’ pensions, military pensions and civil service annuities. For more information, see Pennsylvania’s Personal Income Tax Guide. Retired Military Pay: Military pensions are not taxable in Pennsylvania. Military Disability Retirement Pay: Military Disability Retirement Pay received as a pension, annuity or similar allowance for personal injury or sickness resulting from active service is generally not taxable in Pennsylvania.Property Taxes
Pennsylvania’s average effective property tax rate is 1.58%. Homeowners pay an average property tax of $2,852 on a $180,200 home. Homeowners and renters age 65 or older and widows or widowers who are at least 50 years old are eligible for the Property Tax/Rent Rebate Program. This program also extends to adults with disabilities. The maximum standard rebate is $650. Qualifying annual household income must not exceed $35,000 for homeowners or $15,000 for renters. The program excludes 50% each of Social Security payments payments from eligibility income. Residents may use the Pennsylvania Property Tax/Rent Rebate Program with supplemental rebates to receive up to $975 for homeowners with particularly high tax burdens. Some counties may levy an intangible personal property tax on stocks, bonds and other personal property. Not all counties levy this tax.Inheritance and Estate Taxes
The Pennsylvania inheritance tax is calculated at a percentage of the value of the assets transferred, the relationship of the heir to the decedent ,and the decedent’s date of death. There is no tax on transfers to a surviving spouse or to a parent from a child aged 21 or younger. The tax rate is 4.5% for transfers to direct descendants (lineal heirs) and 12% for transfers to siblings. Transfers to other heirs (except charitable organizations, exempt institutions and government entities) incur a 15% tax. The state allows a 5% discount if Pennsylvania inheritance taxes are paid within three months of the decedent’s death. For further information, visit the Pennsylvania Department of Revenue site.RHODE ISLAND
Sales Taxes
State Sales Tax: 7% (groceries, some clothing, precious metal bullion, some burial-related items and prescription and over-the-counter drugs are exempt). The tax on clothing applies to each sale of apparel and footwear totaling more than $250. Gasoline Tax: $0.34/gallon (Includes all taxes) Diesel Fuel Tax: $0.34/gallon (Includes all taxes) Cigarette Tax: $4.25/pack of 20Personal Income Taxes
Individual Taxes (Married Couple, combined income of 75,000): 4.75% Effective Tax Rate: 3.64% Social Security: Partial Medical/Dental Deduction: None Federal Income Tax Deduction: None Retirement Income Taxes: Deductions allowed for those at full retirement age with aAGI is less than $88,950 (single filer) or $111,200 (filing jointly). Higher-income seniors are not eligible for the Rhode Island income tax exemption on private, government or military retirement plan payouts. Out-of-state government pensions are fully taxed. Retired Military Pay: The state taxes retired military pay to the extent it’s included in federal adjusted gross income.Property Taxes
Rhode Island’s average effective property tax rate is 1.63%, and some rural communities also collect fire district taxes. The median-value Rhode Island home is $261,900, which would incur $4,271 in taxes annually. Homeowners 65 and older who earn $30,000 or less can get a property tax relief credit. Local municipalities may offer a property tax exemption or property tax break for seniors or veterans.Inheritance and Estate Taxes
Rhode Island’s estate tax rate is as high as 16% imposed on estate values over $1.7 million. The gross value of an estate is determined by the combined total of cash, real estate, vehicles, certificates of deposit, investment accounts, life insurance proceeds, retirement accounts and personal property. For further information, visit the Rhode Island Division of Taxation site.SOUTH CAROLINA
Sales Taxes
State Sales Tax: 6% (prescription drugs and unprepared food items and most utilities are exempt). Some South Carolina counties impose an additional sales tax up to 3%. Residents aged 85 or older are exempt from 1% of the state sales tax. Gasoline Tax: $0.28/gallon (Includes all taxes) Diesel Fuel Tax: $0.28/gallon (Includes all taxes) Cigarette Tax: $0.57/pack of 20Personal Income Taxes
Individual Taxes (Married Couple, combined income of 75,000): 7.00% Effective Tax Rate: 5.83% Social Security: Not taxed Medical/Dental Deduction: Federal Amount Federal Income Tax Deduction: None Retirement Income Taxes: Retirement income is taxed in South Carolina, but the state provides exemptions and deductions. Taxpayers age 65 or older can exclude up to $10,000 of retirement income ($3,000 if you’re younger). Those who file a joint return can each claim this exemption. Taxpayers age 65 or older can also deduct $15,000 ($30,000 for joint returns) from total taxable income reduced by the amount of excluded retirement income. A surviving spouse may continue to take 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. Retired Military Pay: For tx years after 2021, military retiree pay is 100% exempt from state income tax with no earned-income cap.Property Taxes
South Carolina’s effective real estate tax rate is 0.57%. Homeowners pay an average of $924 for a home valued at $162,300. Homeowners age 65 and older, can deduct $50,000 of the property’s fair market value from local property taxesthrough the states’ homestead exemption. This benefit is also available for taxpayers who are totally and permanently disabled or legally blind.Inheritance and Estate Taxes
South Carolina has no inheritance tax or estate tax. For further information, visit the South Carolina Department of Revenue site.SOUTH DAKOTA
Sales Taxes
State Sales Tax: 4.5% (prescription drugs are usually exempt); municipalities may add up to an additional 4.50%. Residents who are age 66 and older and have an annual income under $12,880 (single) or total household income under $17,420 are eligible for a sales tax refund. To qualify, you must live in your home for at least three years or be a South Dakota resident for five or more years. Residents who do not receive a property tax refund and do not own a home may apply for the South Dakota sales tax refund. Gasoline Tax: $0.28/gallon (Includes all taxes) Diesel Fuel Tax: $0.28/gallon (Includes all taxes) Cigarette Tax: $1.53 cents/pack of 20Personal Income Taxes
Individual Income Taxes: South Dakota imposes no personal income tax. Retirement Income Taxes: There is no state income tax in South Dakota, and retirement income is not taxed.Property Taxes
In South Dakota, property taxes can be levied by school districts, cities, townships, counties, water districts and additional special districts for specific purposes such as fire protection or sanitary systems. Property taxes are determined annually by the local or county government. The average effective property tax rate in South Dakota is 1.31%, which equates to $1,295 on a $109,400 home. A tax freeze and municipal property tax reduction are available for seniors age 65 and older and disabled persons. Residents must meet income requirements to qualify for the assessment freeze and reside in a single-family dwelling for at least 200 days of the previous calendar year. Single filers with income under $30,423 or $38,029 for multi-member households may qualify. South Dakota offers a property tax refund for single homeowners age 66 and instances where the head of household is 66 or older if the taxpayer as been a state resident for one year or more. South Dakota also has a homestead exemption for homeowners who are at least 70 years of age (or surviving spouses). The unpaid taxes count as a lien on the property, which includes 4% interest, payable before the property transfer to a new owner. Annual income requirements are under $16,000 for a single homeowner and $20,000 for a multi-member household. Veterans rated as permanently and totally disabled as the result of a service-connected disability may be eligible for an exemption. This rule includes up to $100,000 of real property value. For more information on property taxes, see South Dakota’s Property Tax information.Inheritance and Estate Taxes
South Dakota has no inheritance tax or estate tax. Federal estate taxes still apply. For further information, visit the South Dakota Department of Revenue site.TENNESSEE
Sales Taxes
State Sales Tax: 7% on tangible property (prescription drugs are exempt) and 5% on groceries. Counties and cities may add up to 2.75%. You pay sales tax only on the first $1,600 of any taxable item. Gasoline Tax: $0.26/gallon (Includes all taxes) Diesel Fuel Tax: $0.27/gallon (Includes all taxes) Cigarette Tax: $0.62/pack of 20Personal Income Taxes
There is no income tax in Tennessee. Only retirement dividends and interest are taxed. Medical/Dental Deduction: None Federal Income Tax Deduction: None Retired Military Pay: Not taxedProperty Taxes
The average effective property tax rate is 0.71, which is collected by counties and cities. The median home value in Tennessee is $167,200, which incurs $1,190 annually. Tennessee offers property tax relief to eligible homeowners aged 65 or older, disabled individuals and veterans or their surviving spouses. Tennessee Tax Relief provides a rebate check to property owners when they pay their taxes if their total income is below $41,900. The amount varies from year to year depending on property assessment values and local tax rates. The property tax freeze program is available for homeowners 65 and older who meet income qualifications. The required maximum income level varies by county, ranging from $31,600 to $56,790. For additional information, see Tennessee’s Tax Freeze page.Inheritance and Estate Taxes
Tennessee has no inheritance tax or estate tax. For further information, visit the Tennessee Department of Revenue site.TEXAS
Sales Taxes
State Sales Tax: 6.25% (groceries and prescription and over-the-counter drugs exempt); local taxes add up to an additional 2%. Gasoline Tax: $0.319/gallon (Includes all taxes) Diesel Fuel Tax: $0.319/gallon (Includes all taxes) Cigarette Tax: $1.41/pack of 20Personal Income Taxes
Individual Income Taxes: There is no income tax in Texas. Federal Income Tax Deduction: None Retirement Income Taxes: Not Taxed Social Security: Not taxed Retired Military Pay: Not TaxedProperty Taxes
Property taxes in Texas are among the highest in the country. The effective rate is 1.80%, or an average of $3,099 on the median home value of $172,500. Texas helps seniors offset the cost of property taxes with a homestead exemption and exemptions for senior citizens, disabled individuals, veterans and surviving spouses of disabled veterans. The Texas Homestead Exemption amounts to $40,000. Some taxing districts provide an additional exemption. Disabled veterans living in Texas qualify for an exemption of up to $12,000. The amount of the tax break depends on age and VA disability rating. Vets qualifying for the highest exemptions are: 70% disabled, or at least 65 with a disability rating of at least 10%, or blind in one or both eyes or lost one or more limbs. A disabled veteran’s surviving spouse is entitled to the exemption the veteran had at the time of death unless the spouse remarries. An exemption is also offered to a surviving spouse and minor children of an active-duty member who dies while serving.Inheritance and Estate Taxes
There is no inheritance or estate tax in Texas. For further information, visit the Texas Comptroller website.UTAH
Sales Taxes
State Sales Tax: 6.10% plus a max local sales tax rate of 2.95% Gasoline Fuel Tax: $0.319/gallon (Includes all taxes) Diesel Fuel Tax: $0.319/gallon (Includes all taxes) Cigarette Tax: $1.70/pack of 20Personal Income Taxes
Individual Taxes (Married Couple, combined income of 75,000): 4.95% Effective Tax Rate: 4.95% Social Security: Yes Medical/Dental Deduction: None Federal Income Tax Credit: Utah offers a federal tax credit for low- and middle-income households. The amount of the credit phases out by 2.5% for each dollar modified AGI exceeds $30,000 (single filers) or $50,000 (joint filers) Retirement Income: Taxpayers age 65 and older are eligible for an income tax credit of up to $450, or $900 if filing jointly. Qualifying modified adjusted gross income levels are under $25,000 (single filers) or $32,000 (joint filers). Visit the Utah State Tax Commission for more information. Retired Military Pay: Utah tax law mentions no special provisions for military pensions, which are taxed as income. Those older than 65 are entitled to the $450 or $900 tax credit discussed above. Military Personnel and Their Spouses: Military income of a nonresident service member serving in Utah and their nonresident spouse’s earned is exempt from Utah state income tax.Property Taxes
Tax areas are responsible for setting Utah’s property tax rates. The average effective rate is low at 0.63%. The state’s median home value is $270,100, which would incur $1,748 in taxes annually. Homeowners and renters over the age of 65 (and surviving spouses of any age) are eligible for a circuit breaker tax credit permitting an abatement of 50% of the property taxes due. Those who own homes and mobile homes also receive an additional credit equal to the tax on 20% of their property’s fair market value. Homeowners who qualify for the circuit breaker usually also qualify for an additional abatement or deferral. See Utah Tax Commission’s Circuit Breaker information for current qualifying income and benefit levels. Taxpayers who have a disability or extreme hardship and are younger than 65 may also qualify for this tax relief. Visit the Utah Tax Commission site.Inheritance and Estate Taxes
There is no inheritance tax in Utah. Utah’s estate tax is called a pick up tax because Utah picks up all or a portion of the credit for state death taxes allowed on the federal estate tax return. For further information, visit the Utah State Tax Commission site.VERMONT
Sales Taxes
State Sales Tax: 6% (medical items, groceries, clothing, prescription and over-the-counter drugs are exempt). Local jurisdictions may add an additional 1%. Tax is 9% on prepared foods, restaurant meals and lodging. Gasoline Tax: $0.316/gallon (Includes all taxes) Diesel Fuel Tax: $0.341/gallon (Includes all taxes) Cigarette Tax: $3.08/pack of 20Personal Income Taxes
Individual Taxes (Married Couple, combined income of 75,000): 7.60% Effective Tax Rate: 6.09% Social Security: Partial Medical/Dental Deduction: Federal amount Federal Income Tax Deduction: None Retirement Income: Social Security benefits are taxed for single filer income greater than $45,000 annually or over $60,00 for joint filers. Out-of-state government pensions and other retirement income are taxed at rates from 3.35% to 8.75%. Those who qualify for the federal Credit for the Elderly or the Disabled are entitled to a tax credit in Vermont. Qualifications include retired with disability income, permanent and total disability, age 65 or older and certain income limits. The Vermont tax credit is 24% of the federal credit. Retired Military Pay: Follows federal tax rules. Vermont Tax Guidelines for Military Personnel: See the latest information at the Vermont Department of Taxes. A veteran must be classified as 50% or higher disabled, receive a non-service improved pension or be receiving military retirement pay for a permanent medical military retirement.Property Taxes
The property tax in Vermont is 1.90% of assessed value, which amounts to $4,329 on a $277,700 home—the state’s median home value. Taxes include school district and homestead taxes. Each town and union school district has a tax rate based on spending per pupil. If a town includes multiple school districts, the tax rate is combined from each district. Residents are required to file a Homestead Declaration annually. Non-homestead properties are taxed at a higher rate, so filing the declaration is vital. Vermont publishes property tax rates by town. Eligible Vermont residents can claim a rebate of their school and municipal property taxes if their household income does not exceed a certain level. The household income limit for the Vermont Property Tax Adjustment was $136,900 in 2021. This amount fluctuates with annual adjustments. For more information, Vermont’s Tax Credit page.Inheritance and Estate Taxes
Although Vermont does not have an inheritance tax, it has a flat estate tax of 16% on estates above $5 million. Vermont’s Estate Tax page provides current requirements. For further information on Vermont state taxes, visit the Vermont Department of Taxes site.VIRGINIA
Sales Taxes
State Sales Tax: 5.3%. Food and personal hygiene items have a reduced sales tax of 2.5%. Total tax rates may reach as high as 0.07% due to county or local sales tax. Local road taxes may slightly increase the sales tax. Gasoline Tax: $0.28/gallon (Includes all taxes) Diesel Fuel Tax: $0.289/gallon (Includes all taxes) Cigarette Tax: $0.60/pack of 20Personal Income Taxes
Individual Taxes (Married Couple, combined income of 75,000): 5.75% Effective Tax Rate: 5.26% Social Security: Not taxed Medical/Dental Deduction: Partial. In Virginia, you can deduct the total amount of qualified medical and dental expenses that exceeds 10% of your federal adjusted gross income. Those who are age 66 and older with annual earned income of at least $20,000 and federal adjusted gross income under $30,000 for the taxable year may be able to deduct the cost of prepaid funeral insurance or medical or dental insurance premiums. If you do not claim a federal deduction for long-term care insurance premiums, you can take a deduction on your Virginia tax return. Federal Income Tax Deduction: None Retirement Income: Virginia law exempts Social Security 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. The Virginia Age Deduction is available to those born on or before January 1, 1955. If you or a spouse were born on or before January 1, 1939, you may claim a $12,000 age deduction. Those born on or between January 2, 1939, and January 1, 1955, are eligible for an income-based age deduction based on adjusted federal adjusted gross income (AFAGI). AFAGI is equal to federal adjusted gross income, modified for any fixed-date conformity adjustments, reduced by taxable Social Security benefits. The age deduction is subject to various reductions, explained on the Virginia tax subtractions page. The Virginia Spouse Tax Adjustment (STA) allows married couples to file joint returns without paying higher taxes than if they had filed separately. 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. Virginia offers various subtractions and exemptions for military personnel.Property Taxes
Virginia’s cities, counties and towns administer property taxes, which 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. Virginia’s effective property tax rate is 0.82%. For example, you’d owe $2,234 annually on a home worth $273,100. Many Virginia counties, cities and towns provide tax relief programs for seniors and people with disabilities. These programs allow for an exemption, deferral or both. The tax break applies to property taxes on real estate domiciles and manufactured homes. The home must be owned and occupied as the sole dwelling of a person 65 years of age or older. Income and net worth limits apply depending on the community. Contact local tax officials for information. There are no adjustments at the state level. The Virginia Livable Home Tax Credit (LHTC) applies to purchases or construction of a home to meet the eligibility guidelines established by the Virginia Department of Housing and Community Development. Tax credits are available for up to $5,000. For details, see Virginia LHTC program information.Inheritance and Estate Taxes
There is no estate or inheritance tax in Virginia. For further information, visit the Virginia Department of Taxation site.WASHINGTON
Sales Taxes
State Sales Tax: 7% (groceries and prescription drugs are exempt). Local taxes may increase the total tax to 9%. Gasoline Tax: $0.494/gallon (Includes all taxes) Diesel Fuel Tax: $0.494/gallon (Includes all taxes) Cigarette Tax: $3.03/pack of 20Personal Income Taxes
Individual Income Taxes: Washington state imposes no personal income tax. Retirement Income Taxes: Not taxedProperty Taxes
The average effective property tax rate in Washington is 0.98%, or $3,326 on the median home value of $339,000. The state has complicated property tax codes with tax limits, various levy calculations and banked capacity for local governments. Contact local tax officials for details specific to the community you want to learn more about. A property tax exemption is available to taxpayers who, on December 31 the year before the taxes are due, are:- 61 years of age or older
- Retired due to disability
- If not on retirement disability, a veteran of the U.S. armed forces with a combined service-connected evaluation rating of 80% or higher or total disability with no evaluation percentage.
Inheritance and Estate Taxes
Washington has no inheritance tax. The estate tax ranges from 10% to 20% on estates above $2.2 million. Washington offers an additional deduction for family-owned businesses valued under $6 million. For further information, visit the Washington Department of Revenue site.WEST VIRGINIA
Sales Taxes
State Tax Rate: 6% (prescription drugs and groceries are exempt). County and local taxes may increase the total rate by up to 1%. Gasoline Tax: $0.357/gallon (Includes all taxes) Diesel Fuel Tax: $0.357/gallon (Includes all taxes) Cigarette Tax: $1.20/pack of 20Personal Income Taxes
Individual Taxes (Married Couple, combined income of 75,000): 6.50% Effective Tax Rate: 6.15% Social Security: Yes Medical/Dental Deduction: None, although seniors age 60 and older are eligible for the Golden Mountaineer Card that can be used for pharmaceutical and other discounts. Federal Income Tax Deduction: None Retirement Income Taxes: In 2021 the exemption is 65%, then the tax will be eliminated by 2022. Residents can deduct 65% of federal taxable benefits, if federal gross income is below $50,000 (single filers) or $100,000 (joint filers). All other retirement income is taxed with an $8,000 deduction. Retired Military Pay: As of tax year 2019, all military retirement income from the regular armed forces, reserves and National Guard is exempt from WV income tax. The exemption also applies to other uniformed services, such as the United States Public Health Service Commissioned Corps and the National Oceanic and Atmospheric Administration Commissioned Officer Corps.Property Taxes
Property tax rates across West Virginia depend on levies from county boards of education, county commissions, local municipalities and the state. The average effective property tax rate is 0.58% or $698 on the $119,600 median home value. West Virginia offers a $20,000 exemption to citizens age 65 or older. Applicants must live in an owner-occupied residential property or individuals who are permanently and totally disabled. The home’s assessed must be more than $20,000 and federal adjusted gross income less than 150% of federal poverty guidelines. West Virginia’s Homestead Excess Property Tax Credit provides a refundable credit of up to $1,000 if property taxes are more than 4% of annual gross income. Gross income includes Social Security benefits. This credit is available to low-income taxpayers with a federal adjusted gross income of 300% or less of the federal poverty guidelines. You need not be eligible for the homestead exemption to qualify for this credit. For more information, see the state of West Virginia property tax information.Inheritance and Estate Taxes
There is no inheritance tax in West Virginia, and the estate tax is limited and related to federal estate tax collection. For further information, visit the West Virginia State Tax Department site.WISCONSIN
Sales Taxes
State Tax Rate: 5% (groceries and prescription drugs are exempt). Local taxes add up to 1.75% Gasoline Tax: $0.309/gallon (Includes all taxes) Diesel Fuel Tax: $0.309/gallon (Includes all taxes) Cigarette Tax: $2.52/pack of 20Personal Income Taxes
Individual Taxes (Married Couple, combined income of 75,000): 7.65% Effective Tax Rate: 6.38% Social Security: Not taxed Medical/Dental Deduction: Medical and dental expenses higher than 7.5% of adjusted gross income are deductible. You may elect to use this amount to take advantage of the Wisconsin itemized deduction credit. Wisconsin allows deductions for medical insurance premiums and long-term care insurance. These payments must not be paid from distributions from tax-free retirement plans. Federal Income Tax Deduction: None Retirement Income Taxes: Wisconsin generally taxes pension and annuity income that is taxable for federal purposes. However, there are differences between some state and federal retirement income taxes. Wisconsin does not tax Social Security benefits, and some state and local government retirees qualify for a tax exemption. Military retirement payments are not taxed, but out-of-state government pensions are fully taxed. 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 these retirement benefits from Wisconsin income tax. This tax break is available to those who are at least 65 years of age before December 31 of the tax year. If the individual is single or files as head of household, federal adjusted gross income must be less than $15,000. Married individuals must have a FAGI under $30,000 whether they file individually or jointly. The subtraction does not apply to retirement benefits that are otherwise exempt from Wisconsin income tax. Wisconsin residents age 65 or older are also allowed an additional $250 personal exemption. Retired Military Pay: All military retirement pay is exempt from Wisconsin income tax.Property Taxes
The average effective property tax rate in Wisconsin is 1.85%. The median home value is around $180,600 and is taxed $3,344. Retirees age 62 or older or who are disabled and live in Wisconsin all year qualify for a homestead credit if they have less than $24,680 in household income for 2021. The homestead credit provides tax relief to homeowners and renters. Wisconsin also has a school property tax credit available to homeowners. This is a credit against Wisconsin income tax liability. Learn more from the Wisconsin Property Guide for Owners.Inheritance and Estate Taxes
Wisconsin levies no inheritance or estate tax. For further information, visit the Wisconsin Department of Revenue site. For specific retiree information, see Wisconsin Publication 106.WYOMING
Sales Taxes
State Tax Rate: 4% (prescriptions and food for home consumption are exempt); counties can add up to 2% in additional taxes. A county lodging tax varies from 2% to 4% and is added to the other sales taxes. Gasoline Tax: $0.24/gallon (Includes all taxes) Diesel Fuel Tax: $0.24/gallon (Includes all taxes) Cigarette Tax: $0.60/pack of 20Personal Income Taxes
Individual Income Taxes: Wyoming has no state income tax. Retirement Income Taxes: Not taxed, including that received from other states.Property Taxes
Wyoming’s average effective property tax rate is 0.61%. Wyoming is a fractional assessment state, so tax is levied on only a portion of the property’s full assessed value. The median home value is $220,500 with $1,337 in property tax. Wyoming offers three property tax relief programs. The property tax deferral program allows a resident age 62 or older to pay tax at a later date on a qualifying residence. Wyoming does not charge interest on deferred taxes. Additional qualifications include:- The property owner providing an affidavit demonstrating income below limits set each year
- Social Security disability if younger than 62 years old
- Property purchased at least 10 years prior
- Proof of payment for the first half of taxes due