Taxes in Kansas to New Mexico


Updated: August 2020

Taxes by State

Please choose a State: 
KansasKentuckyLouisianaMaine
MarylandMassachusettsMichigan,
Minnesota, MississippiMissouri
MontanaNebraskaNevadaNew HampshireNew JerseyNew Mexico

This guide includes information about how states tax retirement income, everyday purchases and property. Each state profile provides details about exemptions, credits and tax relief programs. We’ve also included information about inheritance and estate taxes and retirement-related tax breaks.

This section covers taxes in Kansas through New Mexico. See Retirement Taxes by State for information about 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.


KANSAS

Sales Taxes

State Sales Tax: 6.5%. Cities and counties may add another 4.1% for an average combined rate of 8.76%. Kansas does not tax prescription drugs, medical devices like wheelchairs, lifts and CPAP machines. Hearing aid replacement parts are tax-exempt.
Gasoline Tax: 42.43 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 50.43 cents/gallon (Includes all taxes)
Cigarette Tax: $1.29/pack of 20

Personal Income Taxes

Medical/Dental Deduction: Taxpayers can deduct medical and dental expenses exceeding 7.5% of adjusted gross income (AGI).
Federal Income Tax Deduction: None
Retirement Income Taxes: Military, civil service, federal, state and local government pensions are exempt. Social Security income is exempt for residents with a federal adjusted gross income of $75,000 or less.
Out-of-state and other pensions are fully taxed along with income from a 401(k) or IRA.
Retired Military Pay: Not taxed.

Property Taxes

The effective property tax rate across Kansas is 1.41% on average. This rate can vary a great deal between counties, but residents pay an average $2,045 on the median-value $145,400 home.
Homeowners born before January 1, 1964, may be eligible for a refund of up to $700 on property taxes under the Kansas Homestead Property Tax Refund Act. Household income must be under $35,700 to qualify. The taxpayer must have been totally and permanently disabled or blind during the entire year (regardless of age) or had a dependent child under age 18 living in the household.
The Kansas Property Tax Relief for Low Income Seniors (SAFESR) offers a 75% refund on property tax paid. Kansas homeowners who live in the state year-round with a household income under $20,300 (adjusted annually) qualify at the age of 65 or older. The home value must be below $350,000. Residents are not eligible for both SAFESR and the Homestead refund.
Call (785) 296-2365 for property tax details or see the Kansas Homestead Refund information.

Inheritance and Estate Taxes

Kansas does not charge an estate tax or inheritance tax.


KENTUCKY

Sales Taxes

State Sales Tax: 6% (food and prescription drugs, residential utilities except for telephone and medical supplies are exempt). There are no local sales and use taxes in Kentucky.
Gasoline Tax:  44.4 cents/gallon (Includes all taxes)
Diesel Fuel Tax:  47.4 cents/gallon (Includes all taxes)
Cigarette Tax: $1.10/pack of 20

Personal Income Taxes

Medical/Dental Deduction: Health care costs, including medical and long-term care insurance, are no longer allowed on Kentucky tax returns.
Federal Income Tax Deduction:  None
Retirement Income Taxes: Social Security, Railroad Retirement benefits and Roth IRA distributions are exempt. Kentucky excludes up to $31,110 for state, private and military retirement plans.
Retired Military Pay: Kentucky taxes military retirement pay the same as any other retirement income. Exclude $31,110 from the Kentucky tax return.

Property Taxes

Kentucky’s effective average property tax rate is 0.86%, or $1,166 on the average assessed home value of $135,300.
Kentucky has a Homestead Exemption on the assessed value of a qualifying single-unit residential property. This tax break is adjusted every two years based on the cost of living index. Homeowners aged 65 and older or classified as totally disabled by a federal or state agency may be eligible.
Call (502) 564-4581 for details or visit the Kentucky Homestead Exemption page.

Inheritance and Estate Taxes

Kentucky has no estate tax. The inheritance tax is assigned to one of three classes.

  • Class A beneficiaries are closest relatives (spouse, parent, child, grandchild, brother and sister). These individuals pay no tax.
  • Class B beneficiaries are nieces, nephews, half-nieces, half-nephews, daughters-in-law, sons-in-law, aunts, uncles and great-grandchildren. The inheritance tax rate ranges from 4% to 16%, depending on the value of the inherited property. Kentucky excludes the first $1,000 of property value from inheritance tax.
  • Class C individuals are all relatives not otherwise classified, including nieces and nephews by marriage and great-nieces and great-nephews. These heirs are taxed 6% to 16% on property received with a $500 exclusion.

For more information, see the Guide to Kentucky Inheritance, visit the Kentucky Department of Revenue website or call (502) 564-4581.


LOUISIANA

Sales Taxes

State Sales Tax: 4.5%, but local sales taxes increase the rate to 9.45% on average. Groceries and prescription medications are exempt from state sales tax but not necessarily local sales tax.
Gasoline Tax: 38.41 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 44.41 cents/gallon (Includes all taxes)
Cigarette Tax: 1.08 cents/pack of 20

Personal Income Taxes

Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: You may deduct your total federal income tax liability minus any nonrefundable federal tax credits claimed.
Retirement Income Taxes: Louisiana exempts federal, state and local government retirement income from taxes. Railroad Retirement benefits are also exempt.
Louisiana residents who are 65 years of age or older can exclude up to $6,000 of annual retirement income from taxable income. Joint filers who meet the age qualification may take that exclusion. If only one spouse has retirement income, the exclusion is limited to $6,000.
Deferred income from the municipal and state police employees’ retirement is exempt from state income tax. See Louisiana Income Tax FAQ for more information or call (225) 219-0102.
Retired Military Pay: Not taxed.

Property Taxes

The average effective property tax rate in Louisiana is 0.53%. This amount varies by parish or municipal district. Homeowners pay $840 on the average $157,800 home value.
Louisiana’s Homestead Exemption reduces the assessed value of a residential property by $7,500. The amount is doubled for military veterans with a 100% service-related disability and their surviving spouses. The homestead exemption is permanent if the home is sold or the taxpayer no longer uses it as the primary residence.
Homeowners who are 65 or older and meet income requirements may apply to have their property value frozen. The gross income level is set by the state and changes annually. The 2018 amount was an adjusted gross income of less than $73,851. This benefit is lost if the homeowner improves more than 25% of the home’s value.
Call (225) 925-7830 for additional details.

Inheritance and Estate Taxes

Louisiana has no inheritance or estate taxes.
For further information, visit the Louisiana Department of Revenue site or call (255) 219-0102. See the Louisiana Tax Commission site for additional information.


MAINE

Sales Taxes

State Sales Tax: 5.5% (food and prescription drugs exempt). No additional taxes from municipalities.
Gasoline Tax: 48.41 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 55.61 cents/gallon (Includes all taxes)
Cigarette Tax: $2.00/pack of 20

Personal Income Taxes

Medical/Dental Deduction:  Federal amount
Federal Income Tax Deduction:  None
Retirement Income Taxes: Military pensions, Social Security benefits and Railroad Retirement benefits are not taxed in Maine. Up to $10,000 of other retirement income from pensions, 401(k) plans and IRAs are exempt, but taxpayers must subtract Social Security and Railroad Retirement benefits.
Retired Military Pay: Fully exempt.

Property Taxes

Maine’s effective average property tax is 1.36%, or $2,793 on a $203,000 home. The Property Tax Fairness Credit gives a property tax credit to Maine homeowners and renters of up to $1,200. This credit is reduced to $750 for those under the age of 65. Income limits to qualify for the Property Tax Fairness Credit range from $34,167 to $55,000 for tax year 2019 and are adjusted annually.
Maine also offers Homestead and Veteran’s Exemption programs to reduce property taxes for those who qualify. Veterans who served during a recognized war, are at least 62 years old and are classified as 100% disabled are entitled to a $6,000 exemption. Paraplegic veterans who received a federal grant to adapt their housing may receive a $50,000 exemption. See Maine Property Tax Exemptions for details about these and other tax relief programs.

Inheritance and Estate Taxes

Maine has no inheritance tax. The state taxes estates at varying rates from year to year, starting with deaths in 2013, with a $5.8 million exemption for 2020. A taxable estate is the sum of:

  • Federal taxable amount plus taxable gifts made over one year ending on the date of the decedent’s death.
  • Maine elective property value. If the decedent dies before January 1, 2016, this amount is decreased by any Maine qualified terminable interest property (QTIP) property.

See Maine’s estate tax guidance documentation for details or call (207) 626-8475.


MARYLAND

Sales Taxes

State Sales Tax: 6.0% with no additional local taxes. Food, medical devices, medical services and prescription drugs are exempt. Maryland has an annual sales tax holiday in August.
Gasoline Tax: 54.7 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 61.45 cents/gallon (Includes all taxes)
Cigarette Tax: $2.00/pack of 20

Personal Income Taxes

Medical/Dental Deduction: Maryland residents can take a one-time $500 credit for the cost of long-term care insurance. The insured can be a spouse, parent, stepparent, child or stepchild. Maryland residency, coverage beginning after July 1, 2000, and other qualifications are required.
Maryland also offers taxpayers a credit for the cost of home improvements for aging in place or living with disabilities. The Maryland Independent Living Tax credit amounts to 50% of qualified expenses paid during a taxable year. The maximum credit is equal to $5,000 or the amount of taxes owed. The Maryland Department of Housing and Community Development must certify the expenses.
Federal Income Tax Deduction: None
Retirement Income Taxes: Maryland does not tax Social Security or Railroad Retirement income. Taxpayers who are 65 or older, totally disabled or have a completely disabled spouse can exclude up to $31,100 of federally taxed income from a pension or 401(k). IRA distributions and out-of-state pensions are excluded from this rule.
Retired correctional or law enforcement officers and fire, rescue and emergency services personnel may take advantage of a separate exclusion. The age bracket for using this exemption is 55 to 64, and the amount is up to $15,000.
Retired Military Pay: Up to $15,000 of military retirement income is tax-exempt for retirees aged 55 and older. The exemption is reduced to $5,000 for those who don’t meet the age threshold.

Property Taxes

The average effective property tax rate in Maryland is 1.09%. This amounts to $3,344 on the average home value of $305,500.
Maryland’s Homeowners’ Property Tax Credit Program reduces property tax amounts exceeding a combined household income percentage. Currently, there’s no credit on the first $8,000, 4% of the next $4,000 and 6.5% of the next $4,000 of income. Income over $16,000 is figured at 9%.
The Homestead Credit assists homeowners who have a large increase in their property assessment. This program limit increases in annual taxable assessments to a fixed percentage. Each municipality has a homestead cap and may limit taxable assessments increases to a maximum of 10% per year.
Renters who are at least 60 years old or totally disabled are eligible for the Renters’ Tax Credit Program. The tax relief is based on income and the amount of rent less utilities.
The Maryland Property Tax Deferral Program allows property owners aged 65 or over to defer property tax bill increases. Local governments determine income restrictions and the amount of interest on the outstanding taxes. Deferred taxes become a lien on the property. The loan is paid off when the property is transferred due to circumstances such as selling the home or the taxpayer’s death.
See Maryland’s property tax guide for homeowners for details or call (410) 767-1184.

Inheritance and Estate Taxes

Maryland has both an estate tax and an inheritance tax. The first $5 million is exempt, although this amount may be revised annually. Estate tax ranges from 0.8% to 16%.
Maryland’s estate tax rules for those who died after July 1, 2020, exempt property passed to a spouse, child, parent, grandparent, stepchild or stepparent, siblings or other lineal descendants. This rule also applies to property passed on to a corporation listing these relatives as stockholders. Any other individuals pay 10%.
For those who died on or after July 1, 1999, there is a 0.9% tax on the clear value of property passed to a child or other lineal descendant, spouse, parent or grandparent. Siblings pay 8% and all others pay 10%. Maryland has a separate inheritance tax for descendants who died before July 1, 1999
See Maryland Estate and Inheritance Tax for more information.
For further information on Maryland taxes in general, visit the Maryland Comptroller of the Treasury site. You can also call (410) 260-7980.


MASSACHUSETTS

Sales Taxes

State Sales Tax: 6.25% (exemptions include food, prescription drugs, utilities, heating fuel and clothing costs of $175).
Gasoline Tax: 50.94 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 44.94 cents/gallon (Includes all taxes)
Cigarette Tax: $3.51/pack of 20

Personal Income Taxes

Medical/Dental Deduction: Medical or dental expenses greater than 7.5% of federal adjusted gross income.
Federal Income Tax Deduction: None
Retirement Income Taxes: Civil service and federal, state or local government pensions are exempt. Pension income from plans that do not tax pension income from Massachusetts public employees is exempt.
Railroad Retirement, military retirement and Social Security benefits are exempt.
Massachusetts provides a $700 exemption for those over age 65 ($1,400 if married). A $2,200 exemption applies if the taxpayer or spouse is legally blind.
Retired MilitaryPay: Not taxed.

Property Taxes

The average home cost in Massachusetts is $366,800, with an average property tax of $4,508. The effective rate is 1.23%.
Massachusetts Circuit Breaker tax credit is available to homeowners and renters over the age of 65. The credit is based on real estate taxes paid on the principal residence. The income requirements are:

  • $60,000 for a single individual who is not the head of a household.
  • $75,000 for a head of household.
  • $90,000 for married couples filing a joint return.

The Circuit Breaker tax credit was $1,130 for the 2019 tax year and may be adjusted annually.
At the local level, seniors who are at least 70 years old may qualify for additional property tax credits based on Clauses 41, 41B, 41C or 41C½. See Local Property Tax Exemptions for Seniors for details.

Inheritance and Estate Taxes

Massachusetts estate tax is levied on the gross estate plus adjusted taxable gifts, computed using the Internal Revenue Code. If this amount exceeds $1 million, it is taxed at a rate of 0.8% to 16%.
Massachusetts has no inheritance tax.
For further information, visit the Massachusetts Department of Revenue site.


MICHIGAN

Sales Taxes

State Sales Tax: 6%, and 4% on home heating fuel. Groceries and prescription drugs exempt.
Gasoline Tax: 60.38 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 67.58 cents/gallon (Includes all taxes)
Cigarette Tax: $2.00/pack of 20

Personal Income Taxes

Medical/Dental Deduction: None
Federal Income Tax Deduction:  None
Retirement Income Taxes: Michigan taxes benefits based on the year you were born.
Before 1946: No tax on federal and state retirement plans. Government pensions from other states are exempt if they do not tax Michigan pensions. Up to $51,570 of private retirement plan income is exempt ($103,140 for joint filers). Taxpayers can also deduct up to $11,495 ($22,991 for joint returns) of interest.
Between 1946 and 1952: Up to $20,000 of retirement plan income is exempt (up to $40,000 for joint filers). When taxpayers turn 67 years old, this exemption is replaced with a $20,000 or $40,000 standard deduction. However, the standard deduction is reduced by deductions taken for military or railroad retirement benefits. Taxpayers who retire with pension benefits from a government entity exempt from the Social Security Act have higher exemption and deduction limits.
After 1952: No exemption for retirement income. A pension from a government entity that was exempt from the Social Security Act may be deductible. Taxpayers have two options when they turn 67 years old: either deduct $20,000 from all income sources ($40,000 for joint filers) or claim personal exemptions and deduct Social Security, military and railroad retirement income.
For a complete breakdown of retirement and pension taxes, see Michigan’s Retirement and Pension Information.
Retired Military Pay: Not taxed. Survivor benefits are exempt if the amounts are exempt from federal income tax or classified as military compensation or military retirement pay. Military retirement benefits that pass to the spouse of a deceased member of the military are exempt, but other beneficiaries are taxed.

Property Taxes

The effective property tax rate in Michigan is 1.58%, which is $3,240 on a $204,900 property.
Michigan’s homestead property tax credit is available to homeowners and renters. The value of the home must be $135,000 or less. Total household income must be under $60,000 (annualized for part-year residents). Those receiving 100% of total household resources from the Michigan Department of Health and Human Services do not qualify. See Michigan Homestead Property Tax Credit Information to learn about the many special situations affecting this credit.
Michigan’s Principal Residence Exemption Program allows homeowners an exemption from their local school operating millage. Another tax relief program allows residents aged 62 or older with under $40,000 in annual income to apply for a summer property tax deferment. See the Michigan Department of Treasury income tax topic for details or call (517) 636-4486.

Inheritance and Estate Taxes

There is no inheritance tax or estate tax in Michigan.
For further information, visit the Michigan Taxes website.


MINNESOTA

Sales Taxes

State Sales Tax: 6.875% (food, clothing, prescription and over-the-counter drugs are exempt). Local municipalities may add to the state sales tax, bringing it up to more than 8%. There’s an additional 2.5% tax on alcohol.
Gasoline Tax: 47.0 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 53.0 cents/gallon (Includes all taxes)
Cigarette Tax: $3.04/pack of 20

Personal Income Taxes

Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: None
Retirement Income Taxes: Minnesota taxes Social Security income to the same extent it’s taxed on your federal return, unless it is your only source of income.
The state allows taxpayers to subtract a flat amount of Social Security for some tax relief. Married couples filing a joint return can subtract $4,500, and single and head of household filers can subtract $3,500. The amount is $2,250 for married couples who file separate returns. This subtraction phases out based on income levels.
Pension income and distributions from IRAs, 401(k) plans and other retirement accounts are taxed between 5.35% and 9.85%, depending on adjusted gross income (AGI). Minnesota does not tax Railroad Retirement benefits. If these benefits are included in federal taxable income, the flat subtraction is available for Social Security income.
Minnesota’s Age 65 or Older or Disabled Subtraction is available to those who were 65 or older by the end of the tax year. Taxpayers who had a permanent and total disability and received federally taxable disability income are eligible as well. Income limitations apply. See the state’s Age 65 or Older or Disabled Subtraction page for details.
Retired Military Pay: Military pensions are tax-exempt in Minnesota. Taxpayers with a military pension and federal adjusted gross income of $37,500 or less can claim a credit of up to $750.

Property Taxes

The effective property tax rate in Minnesota is 1.13%. You’ll typically pay a bit more in urban areas and close to half that amount in rural communities.
Minnesota’s Property Tax Deferral for Senior Citizens Program limits the tax liability to 3% of total household income from the previous year. The state pays the remainder as a loan with an interest rate at or less than 5%. The loan is due for payment when the home is sold or the taxpayer cancels the deferral. This program places a lien on the property.
Seniors aged 65 and older qualify for the property tax deferral if:

  • Household income is $60,000 or less.
  • The home has been homesteaded for the last 15 years.
  • The taxpayer owned and lived in the home for the last 15 years.
  • The property has no reverse mortgage, a life estate or state or federal liens attached.
  • Any other liens are less than 75% of the estimated market value.
  • If married, one spouse must be 65 or older and the other at least 62.

Minnesota has two property tax refund programs for homeowners: the Homestead Credit Refund for those with household income under $115,020 (subject to change annually) and the Special Homestead Credit Refund for taxpayers who have a net property tax increase by more than 12% (rate may change from year to year). The increased tax bill must not be due to improvements made to the property.
Minnesota renters who meet income requirements may qualify for the Renter’s Property Tax Refund.

Inheritance and Estate Taxes

Minnesota has no inheritance tax. The estate tax ranges from 13% to 16% levied on all of the decedent’s assets before distribution to beneficiaries. The rates adjust every year or two.
Some estates are subject to a recapture tax. See the Minnesota Estate Tax information for details.
For further state tax information, visit the Minnesota Department of Revenue website.


MISSISSIPPI

Sales Taxes

State Sales Tax: 7%, with only two local municipalities adding 0.25% (Tupelo) and 1% (Jackson) to the sales tax. Groceries are taxed, but prescribed medications and some medical devices are exempt. Vehicles are taxed at 5%.
Hospital care, in-home care and most other medical bills are not taxed, but wellness centers, clinics and physicians’ offices likely have to charge sales tax. There is no sales tax on residential utilities like electricity in Mississippi.
Gasoline Tax: 37.19 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 42.8 cents/gallon (Includes all taxes)
Cigarette Tax: 68 cents/pack of 20

Personal Income Taxes

Medical/Dental Deduction: Partial
Federal Income Tax Deduction: None
Retirement Income Taxes: Mississippi does not tax retirement income from qualified plans, such as IRAs, 401(k) plans, public and private pensions and others.
Qualified retirement income is exempt from state income tax. Social Security is not taxed, regardless of total income. Retirement income from IRAs, 401s/403s, Keoghs and qualified public and private pension plans is not taxable. Interest income from federal securities and obligations of Mississippi and its political subdivisions are all exempt.
Mississippi does not tax Social Security, Railroad Retirement or Veterans Affairs benefits. Deductions related to Social Security, such as Medicare tax withheld, are not allowed.
Retired Military Pay: Retired pay is exempt. The exemption is also available to the spouse or other beneficiary upon the death of the primary retiree. Widows’ pensions received from the VA are not taxable.

Property Taxes

Property and automobiles are both subject to ad valorem taxes in Mississippi. This tax is assessed based on the value of the property. The average real estate tax rate is 0.81%, amounting to $924 on the median home value of $114,500.
Single-family residential property is taxed at 10% of its assessed value. All other personal property except for motor vehicles is assessed at 15% of its value. Motor vehicles are taxed at 30%.
Mississippi offers a Homestead Exemption to eligible taxpayers, with a $300 maximum exemption for homeowners under age 65. Homeowners 65 years of age or older or who are totally disabled get an exemption on the first $75,000 of true value.
For additional information, call (601) 923-7631 or see Mississippi’s property tax page.

Inheritance and Estate Taxes

Mississippi has no inheritance tax or estate tax.
For further information, visit the Mississippi Department of Revenue website or call (601) 923-7000.


MISSOURI

Sales Taxes

State Sales Tax: 4.225%; groceries and plants and seeds for gardens are taxed at 1.225%. Cities, counties and special taxing districts may impose a local sales and use raising the rate to an average 8.14%. Prescription drugs, hearing aids and hearing aid supplies are exempt.
Gasoline Tax: 35.82 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 41.82 cents/gallon (Includes all taxes)
Cigarette Tax: 0.17 cents/pack of 20

Personal Income Taxes

Medical/Dental Deduction: Taxpayers who itemize deductions on their federal tax return may itemize deductions on the Missouri income taxes. Taxpayers can take the state standard deduction if the benefit is greater compared to itemized deductions. However, if you itemize on the federal return, you must also itemize on the Missouri return.
Federal Income Tax Deduction: Residents can deduct a percentage of federal income tax based on adjusted gross income. Percentages range from 5% to 35% and phase out completely at $125,001 AGI or greater. This deduction is capped at $5,000.
Retirement Income Taxes: Missouri taxes all retirement income, including Social Security. The state allows a deduction based on income level for public and private pensions, Social Security and military pensions. See the Missouri Income Tax Guide for the tax year for more information. Railroad Retirement income is not taxed.
Public Pension Exemption: Married couples with Missouri adjusted gross income less than $100,000 and single individuals with Missouri adjusted gross income less than $85,000, may deduct up to 65 percent of their public retirement benefits, to the extent the amounts are included in their federal adjusted gross income. The deductible percentage of their public retirement benefits will increase each year.  Married couples with Missouri adjusted gross income greater than $100,000 and single individuals with Missouri adjusted gross income greater than $85,000, may qualify for a partial exemption. Taxpayers who also qualify for the Social Security or Social Security Disability Deduction must reduce their public pension exemption by the amount of the Social Security or Social Security Disability Deduction.
Retired Military Pay: Missouri allows an exemption for military retirement income.

Property Taxes

Missouri’s effective property tax rate is 0.97%. This amounts to $1,987 on the median home price of $151,600.
The Missouri Property Tax Credit Claim is available to senior citizens and 100% disabled individuals who meet income qualifications. This credit provides a maximum of $750 for renters and $1,100 for homeowners who occupied their homes. The credit amount is based on real estate taxes or rent paid and total household income. See the Property Tax Qualification chart to determine eligibility.

Inheritance and Estate Taxes

Missouri has no inheritance tax and no estate tax for deaths occurring on or after January 1, 2005.
Visit the Missouri Department of Revenue site to learn more about taxes in the state.


MONTANA

Sales Taxes

State Sales Tax: Montana has no state sales tax, although local taxes apply in some resort areas.
Gasoline Tax: 51.15 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 54.6 cents/gallon (Includes all taxes)
Cigarette Tax: $1.70 cents/pack of 20

Personal Income Taxes

Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: All federal income taxes paid for the year, up to $5,000 for single filers and $10,000 for married couples filing jointly.
Retirement Income Taxes: Montana taxes all pension, Social Security and other retirement income, except Tier I and II Railroad benefits.
Social Security is taxed differently than it is at the federal level and is deductible for taxpayers who meet income requirements. Single taxpayers with an AGI under $25,000 and those who file a joint return with less than $32,000 AGI can deduct all Social Security retirement income.
Taxpayers who have a higher AGI, but under $34,000 for single filers or $44,000 for joint filers, may deduct one-half of Social Security retirement income. Those with higher AGIs can deduct 15%.
Some Montana retirees are entitled to a partial exemption on up to $4,180 from a retirement plan income, including from 401(k) plans and IRAs. Taxpayers must have a federal adjusted gross income of $36,910 or less, or $39,000 or less for joint filers. Married spouses can each claim the exemption.
Interest income is partially exempt from Montana tax for taxpayers age 65 or older. The exemption is on up to $800 of the interest income reported in federal adjusted gross income. If married and filing jointly, the amount is $1,600.
Retired Military Pay: Military retirement benefits are taxable income in Montana. Survivor benefits are taxed following federal tax rules.

Property Taxes

Montana’s effective property tax rate is 0.84%. Homeowners pay $1,835 on the average $219,600 home value. Properties are assessed at 100% market value. Local governments may impose additional taxes.
Montana’s Property Tax Assistance Program (PTAP) reduces the property tax rate for citizens on a fixed or limited income. The PTAP benefit applies to the first $200,000 of the primary residence market value. Reductions from 30% to 80% are determined by marriage status and income range.
The state reduces property taxes for veterans with 100% disability related to service and unmarried surviving spouses via the Montana Disabled Veterans (MDV) Assistance Program. Property tax reductions range from 50% to 100%, depending on income level and marital status.
Homeowners and renters age 62 or older can apply for a refundable $1,000 income tax credit. Requirements are having lived in Montana for nine months; rented, owned or leased a home in Montana for six months; and under $45,000 gross household income. Taxpayers over age 62 who do not need to file an income tax return are eligible.
Visit Montana’s tax relief page for information about all available property tax assistance.

Inheritance and Estate Taxes

There is no inheritance tax and no estate tax in Montana.
For further information, visit the Montana Department of Revenue site.


NEBRASKA

Sales Taxes

State Sales Tax: 5.5% (food and prescription drugs exempt). Nebraska state sales tax combined with local taxes can drive that rate as high at 8%. There is a sales tax and an annual tax on vehicles.
Gasoline Tax: 57.9 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 52.5 cents/gallon (Includes all taxes)
(Fuel taxes are variable and are reset on July 1 and January 1)
Cigarette Tax: 64 cents/pack of 20

Personal Income Taxes

Medical/Dental Deduction: Federal amount less any state or local income taxes included in those deductions.
Federal Income Tax Deduction:  None
Retirement Income Taxes: Although Railroad Retirement benefits are exempt from Nebraska income tax, all other retirement income is taxed. Social Security is taxed, but state limits apply. Social Security income in the amount of $43,000 ($58,000 if married filing jointly) is deductible from taxable income. The required income threshold may be adjusted from year to year.
Retired Military Pay: A portion of military retirement benefits may be excluded from Nebraska income taxes. This break applies to income included in federal AGI that is attributable to uniformed service in the U.S. military. This exclusion has two options:

  • Exclude 40% of military retirement income for seven consecutive taxable years, beginning with the year in which the election is made.
  • Exclude 15% of military retirement income for all taxable years, beginning with the year the taxpayer turns 67 years of age.

Once the taxpayer chooses an option, it cannot be revoked.

Property Taxes

Nebraska’s effective property tax rate is 1.77%. The average home value is $147,800 with a $2,621 tax.
Nebraska’s Homestead Exemption is available for those over age 65, veterans with disabilities and their spouses (conditions apply) and qualified disabled individuals. Property tax reductions range from 10% to 70% on properties assessed at $95,000 maximum or 200% of the average assessed single-family home value in the county, whichever is greater. Download the latest Nebraska Homestead Information Guide for income requirements and other details.

Inheritance and Estate Taxes

Nebraska has no estate tax but is one of the few states with an inheritance tax. Surviving spouses and charities are exempt from this tax.

  • Immediate relatives other than spouses pay 1% inheritance tax after a $40,000 exemption.
  • Remote relatives receive an exemption on $15,000 and are subject to a 13% inheritance tax.
  • All others pay inheritance tax of 18% with a $10,000 exemption.

Visit the Nebraska Department of Revenue for tax guides, contact information and the latest state tax news.


NEVADA

Sales Taxes

State Sales Tax: 4.6%. County sales tax may increase that amount to up to 8.265%. Most goods and services are taxed in Nevada.
Gasoline Tax: 52.18 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 52.96 cents/gallon (Includes all taxes)
Cigarette Tax: 1.80 cents/pack of 20

Personal Income Taxes

Nevada has no state income tax.
Retirement Income: Not taxed.

Property Taxes

Nevada’s effective property tax rate is 0.64%, or $640 per $100,000 of assessed property value. Veterans and their surviving spouses, blind persons and taxpayers with disabilities are eligible for property tax breaks from $1,440 to $14,400. See Nevada Property Tax: Elements and Applications for up-to-date information.

Inheritance and Estate Taxes

There is no state inheritance tax or estate tax in Nevada.
For further information, visit the Nevada Department of Taxation site or call (866) 962-3707.


NEW HAMPSHIRE

Sales Taxes

State Sales Tax: None. However, New Hampshire charges a 9% sales tax on restaurant meals, prepared food, hotel rooms and car rentals. There’s a tax on telecommunication services, alcohols and real estate transfers. Residents are taxed $.00055 per kilowatt-hour of electricity consumed.
Gasoline Tax:  42.23 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 48.23 cents/gallon (Includes all taxes)
Cigarette Tax: $1.78 cents/pack of 20

Personal Income Taxes

New Hampshire does not tax earned income. The state taxes interest and dividends at 5% for individuals with annual income from all sources exceeding $2,400. The income threshold is $4,800 for joint filers.
Retirement Income: Not taxed.
Retired Military Pay: Not taxed.

Property Taxes

New Hampshire’s effective property tax rate is 2.20%, which is high compared to other states. The median home value is $252,800 with a $5,550 tax bill. The state offers exemptions for individuals who are blind, deaf, have disabilities are 65 years old on April 1 of the tax year.
The Elderly Exemption program for seniors requires New Hampshire residency for at least five years. Net income must be $13,400 or lower if single and $20,400 or less if married, although this may vary by county. Local governments set other eligibility rules, and the state requires a minimum $5,000 exemption off assessed home value.
New Hampshire’s property tax deferral program is available to taxpayers aged 65 and older. Disabled individuals receiving benefits under Social Security Title II or Title XVI also qualify. The deferral is granted annually to those who prove financial hardship. Total deferred taxes and the 5% interest can’t exceed 85% of the owner’s equity. The tax lien is due within nine months of the property owner’s death
New Hampshire offers the Low and Moderate Income Homeowner’s Property Tax Relief program to those who own a home subject to the state education property tax. Total household income to qualify is $20,000 or less, or $40,000 or less if married or head of a household.
Visit New Hampshire Property Exemptions & Tax Credits for more information or call (603) 271-2687 for details on property taxes.

Inheritance and Estate Taxes

New Hampshire levies no inheritance or estate tax.
For further tax information, visit the New Hampshire Department of Revenue Administration site or call (603) 271-2318.


NEW JERSEY

Sales Taxes

State Sales Tax: 6.625% (food, prescription drugs and over-the-counter drugs, most medical equipment, clothing and footwear are exempt). The state sales tax is cut by 50% in designated Urban Enterprise Zones, which exist to stimulate local economies. Salem County also charges a reduced 3.313% rate.
Gasoline Tax: 59.8 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 72.9 cents/gallon (Includes all taxes)
Cigarette Tax: $2.70/pack of 20

Personal Income Taxes

Medical/Dental Deduction: Federal amount exceeding 2% of income.
Federal Income Tax Deduction:  None
Retirement Income Taxes: Social Security benefits, military pensions and Railroad Retirement benefits are not taxed in New Jersey. All other state and federal pensions, annuities and some IRA withdrawals are taxed, but there are exclusions.
New Jersey taxpayers age 62 or older with $100,000 or less in state income can exclude up to $60,000 of pension, annuity, IRA or other retirement plan income. Joint filers can exclude up to $100,000, $50,000 for married filing separately and $75,000 for single filers. Income qualifications and maximums may adjust annually.
Retired Military Pay: Military pensions are exempt from taxes.
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

New Jersey’s effective property tax rate is 2.47% or $8,104 on the median home value of $327,900. The state offers a variety of property tax relief programs.
The New Jersey Senior Freeze Program reimburses seniors aged 65 and older and disabled persons for property tax or mobile home park site fees. Annual combined household income must be $91,505 or less (adjusts annually). This program allows the taxpayer to deduct property taxes paid or $15,000, whichever is less. For renters, 18% of rent paid during the year applies, but the final deduction depends on a number of factors.
New Jersey offers a $250 property tax deduction to senior homeowners. Gross income must be over $20,000 ($10,000 if filing separate or single), or you or your spouse must be 65 or older or blind or disabled on the last day of the tax year. Residents with lower income are eligible only if they meet the age or disability requirement.
The Homestead Benefit Program is a tax credit for homeowners age 65 or older, or who are blind or disabled, with $150,000 or less in annual income. Otherwise, the income requirement is $75,000 or less The rebate amount is a percentage of property taxes paid for the year.
New Jersey has a $250 property tax deduction for veterans and disabled veterans may be eligible for a 100% property tax exemption. See New Jersey Other Property Tax Benefits for details.

Inheritance and Estate Taxes

New Jersey phased out the estate tax in 2018, but still levies an inheritance tax on property transfers. The tax ranges from 11% to 16% on real and personal property valued at $500 or more unless the heir is a spouse, child, stepchild, grandchild, parent or grandparent.
A sibling, son-in-law, daughter-in-law or civil partner pays 11% to 16% inheritance tax depending on the value of the property. All other heirs pay 15% tax on the first $700,000 of inherited property, then 16% tax on the remaining value.
For more information call (609) 292-5033 or see the New Jersey Treasurer inheritance tax information.
For further information, visit the New Jersey Department of Taxation site.


NEW MEXICO

Sales Taxes

State Tax Rate: 5.125% (prescription drugs exempt). Local taxes combined with state sales tax can be as high as just over 9%. Certain food and medical expenses are exempt.
Gasoline Tax: 37.28 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 47.28 cents/gallon (Includes all taxes)
Cigarette Tax: $2.00/pack of 20

Personal Income Taxes

Medical/Dental Deduction: Federal amount with state and local taxes claimed on the federal return subtracted. New Mexico residents who are 65 or older can take an income tax exemption of up to $3,000 for medical expenses for the taxpayer, spouse or dependents. The expenses must exceed $28,000 and be out-of-pocket expenses. An additional refundable credit of up to $2,800 for unreimbursed or uncompensated medical expenses can be combined with the exemption.
Federal Income Tax Deduction: None
Retirement Income Taxes: Railroad Retirement benefits are fully exempt, but New Mexico taxes Social Security benefits, pensions and retirement accounts.
Taxpayers 65 years of age or older may be eligible for an income tax deduction of up to $8,000, depending on income level. Adjusted gross income must not exceed $51,000 for joint filers, $28,500 for single taxpayers or $25,500 for married couples filing separately.
Residents who are at least 100 years of age and who are not dependents of other taxpayers do not pay New Mexico personal income tax.
Retired Military Pay: Taxable, subject to the same tax breaks described above.

Property Taxes

New Mexico’s effective property tax rate is 0.79%. The median residential property value of $166,800 comes with a $1,316 tax bill.
The New Mexico Property Tax Rebate is available for residents age 65 and older. This rebate is for homeowners and renters with a modified gross income of $16,000 or less. Eligible married couples filing a joint return receive $250, and others get $125 rebate.
Call (505) 827-0870 for details or see New Mexico property tax information from the Department of Taxation and Revenue.

Inheritance and Estate Taxes

There is no inheritance tax or estate tax in New Mexico.
For further information, visit the New Mexico Taxation and Revenue Department site.

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