The Foreign Service Journal, January-February 2021

THE FOREIGN SERVICE JOURNAL | JANUARY-FEBRUARY 2021 83 OKLAHOMA Individuals receiving FERS/ FSPS or private pensions may exempt up to $10,000, but not to exceed the amount included in the Federal Adjusted Gross Income. A hundred percent of a federal pension paid in lieu of Social Security (i.e., CSRS and FSRDS—“old sys- tem”—including the CSRS/ FSRDS portion of an annuity paid under both systems) is exempt. Social Security included in FAGI is exempt. State sales tax is 4.5 percent. County and local tax rates vary for a total sales tax of up to 11 percent. The average Oklahoma sales tax is around 9 percent. OREGON Generally, all retirement income is subject to Oregon tax when received by an Oregon resident. However, federal retirees who retired on or before Oct. 1, 1991, may exempt their entire federal pension; those who worked both before and after Oct. 1, 1991, must prorate their exemption using the instruc- tions in the tax booklet. If you are over age 62, a tax credit of up to 9 percent of taxable pension income is available to recipients of pension income, including most pri- vate pension income, whose household income was less than $22,500 (single) and $45,000 (joint), and who received less than $7,500 (single)/$15,000 (joint) in Social Security benefits. The credit is the lesser of the tax liability, or 9 percent of tax- able pension income. Social Security is excluded from taxable income. Oregon has no sales tax. PENNSYLVANIA Government pensions and Social Security are not sub- ject to personal income tax. Pennsylvania sales tax is 6 percent. Other taxing entities may add up to 2 percent. PUERTO RICO The first $11,000 of income received from a federal pension can be excluded for individuals under 60. For those over 60, the exclusion is $15,000. If the individual receives more than one federal pension, the exclu- sion applies to each pension or annuity separately. Social Security is excluded from taxable income. RHODE ISLAND U.S. government pensions and annuities are fully tax- able. Social Security is taxed to the extent it is federally taxed. Seniors with a Federal Adjusted Gross Income over $104,450 pay tax on Social Security benefits. Higher- income seniors are not eligible for the Rhode Island income tax exemption on pri- vate, government or military retirement plan payouts. Out- of-state government pen- sions are fully taxed. Sales tax is 7 percent; meals and beverages are 8 percent. SOUTH CAROLINA Individuals under age 65 can claim a $3,000 deduc- tion on qualified retirement