The Foreign Service Journal, January-February 2017

THE FOREIGN SERVICE JOURNAL | JANUARY-FEBRUARY 2017 81 extent it is federally taxed. Sales tax is 7 percent; meals and beverages 8 percent. SOUTH CAROL I NA Individuals under age 65 can claim a $3,000 deduction on qualified retirement income; those age 65 or over may claim a $15,000 deduc- tion on qualified retirement income ($30,000 if both spouses are over 65), but must reduce this figure by any other retirement deduc- tion claimed. Social Security is excluded from taxable income. Sales tax is 6 per- cent plus 1 percent in some counties. 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 IRAs and TSP are not sub- ject 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 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 per- cent on other goods, with between 1.5 and 2.75 per- cent added, depending on jurisdiction. 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 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. Social Security is taxed to the extent it is federally taxed. State general sales tax is 6 percent; local option taxes may raise the total to 7 percent (higher on some commodities). 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