The Foreign Service Journal, January-February 2016

88 JANUARY-FEBRUARY 2016 | THE FOREIGN SERVICE JOURNAL Carolina who is 65 years or older may claim a $15,000 deduction against any type of income ($30,000 if both spouses are over 65), but must reduce this figure by any other retirement deduction claimed. Social Security is not taxed. Sales tax is 6 percent plus 1 percent in some coun- ties. Residents aged 85 and over pay 5 percent. SOUTH DAKOTA No personal income tax or inheritance tax. State sales and use tax is 4 percent; municipalities may add up to an additional 2 percent. Residents who are age 66 and older and have a yearly income of under $10,250 (single) or in a household where the total income was under $13,250 are eligible for a sales tax or a property tax refund. TENNESSEE Social Security, pension income and income from individual retirement accounts and Thrift Savings Plans are not subject to personal income tax. Most interest and dividend income is taxed at 6 percent if over $1,250 (single filers) or $2,500 (married filing jointly). However, for tax year 2015 and subsequently, those over age 65 with total income from all sources of less than $37,000 for a single filer and $68,000 for joint filers are completely exempt from all taxes on income. State sales tax is 5 percent on food, 7 percent on other goods, with between 1.5 and 2.75 percent added, depending on jurisdic- tion. with an extra 0.7 percent in northern Virginia). WASH I NGTON No personal income tax. Retirement income is not taxed. State sales tax is 6.5 percent; rates are updated quarterly. Local taxes may increase the total to 9.5 percent. WEST V I RG I N I A Up to $2,000 of any civil or state pension is tax exempt. Social Security income is taxable only to the extent that the income is includable in federal adjusted gross income. Taxpayers age 65 and older or surviving spouses of any age may exclude the first $8,000 (individual filers) or $16,000 (married filing jointly) of any retirement income. Out-of- state government pensions qualify for this exemption. State sales tax is 6 percent with additions of between 0.5 and 1 percent in some jurisdic- tions. TEXAS No personal income tax or inheritance tax. State sales tax is 6.25 percent. Local options can raise the rate to 8.25 percent. UTAH Utah has a flat tax rate of 5 percent of all income. For taxpayers over age 65, there is a retirement tax credit of $450 for single filers and $900 for joint filers. This is reduced by 2.5 percent of income exceeding $25,000 for single filers and $32,000 for joint filers. See the state website for details. State sales tax is 4.7 percent; local option taxes may raise the total to as much as 9.95 percent. VERMONT U.S. government pensions and annuities are fully tax- able. State general sales tax is 6 percent; local option taxes may raise the total to 7 percent (higher on some com- modities). V I RG I N I A Individuals over age 65 can take a $12,000 deduction. The maximum$12,000 deduction is reduced by one dollar for each dollar by which adjusted gross income exceeds $50,000 for single, and $75,000 for married, taxpay- ers. All taxpayers over age 65 receive an additional personal exemption of $800. Social Security income is exempt. The estate tax was repealed for all deaths after July 1, 2007. The general sales tax rate is 5.3 percent (4.3 percent state tax and 1 percent local tax, WI SCONS I N Pensions and annuities are fully taxable. Those age 65 or over may take two personal deductions totaling $950. Benefits received from a federal retirement system account established before Dec. 31, 1963, are not taxable. Social security is not taxable. Those over age 65 and with a federal adjusted gross income of less than $15,000 (single filers) or $30,000 (joint fil- ers) may exclude $5,000 of income from federal retire- ment systems or individual retirement accounts. Those over age 65 may take an additional personal deduction of $250. State sales tax is 5 percent; most counties charge an extra 1.5 percent. WYOMI NG No personal income tax. State sales tax is 4 percent. Local taxes may add another 4 percent. n —James Yorke, Senior Labor Management Advisor GRAPHICBYEFILE989/CCBY-SA2.0