The Foreign Service Journal, January-February 2022

THE FOREIGN SERVICE JOURNAL | JANUARY-FEBRUARY 2022 75 PUERTO RICO Individuals who are domiciled in Puerto Rico are considered residents and are subject to tax on their entire income regardless of their physical presence in the Commonwealth. Normally, they may claim a credit with certain limitations for income taxes paid to the United States on any income from sources outside Puerto Rico. Taxes range from 7 percent of taxable income up to $25,000 to 33 percent of the taxable income over $61,500 for all taxpayers. Write: Departamento de Hacienda, P.O. Box 9024140, San Juan PR 00902-4140. Phone: (787) 622-0123, Option #8 Website: www.hacienda.gobierno.pr Email: info@hacienda.gobierno.pr RHODE ISLAND Individuals domiciled in Rhode Island are considered resi- dents and are subject to tax on their entire income regardless of their physical presence in the state. The Rhode Island tax rate is 3.75 percent of taxable income up to $66,200 for all filers, 4.75 percent for income over $66,200 and 5.99 percent of taxable income over $150,550 for all filers. Also, a 2010 change treats capital gains as ordinary taxable income. Refer to the tax division’s website for current information and handy filing hints, as well as for forms and regulations. Write: Rhode Island Division of Taxation, Taxpayer Assis- tance Section, One Capitol Hill, Providence RI 02908-5801. Phone: (401) 574-8829, Option #3 Website: www.tax.ri.gov Email: Tax.Assist@tax.ri.gov SOUTH CAROLINA Individuals domiciled in South Carolina are considered resi- dents and are subject to tax on their entire income regardless of their physical presence in the state. South Carolina’s tax rates rise in six steps to a maximum of 7 percent of South Carolina taxable income over $15,400 for all filers. Write: South Carolina Tax Commission, P.O. Box 125, Columbia SC 29214. Phone: (844) 898-8542, Option #1; or (803) 898-5000 Website: https://dor.sc.gov Email: iitax@dor.sctax.gov , or through the website’s Con- tact Us tab. SOUTH DAKOTA There is no state income tax and no state inheritance tax. State sales and use tax is 4.5 percent; municipalities may add up to an additional 3 percent. Write: South Dakota Department of Revenue, 445 East Capitol Ave., Pierre SD 57501-3185. Phone: (605) 773-3311 or (800) 829-9188 Website: https://dor.sd.gov Email: Link through the website’s Contact Us tab. TENNESSEE Salaries and wages are not subject to state income tax. Tennessee is now completely free of income taxes as the Hall Tax on bond and note interest and stock dividends was repealed as of Jan. 1, 2021. Write: Tennessee Department of Revenue (Attention: Taxpayer Services), 500 Deaderick St., Nashville TN 37242. Phone: (615) 253-0600 Website: www.tn.gov/revenue Email: TN.Revenue@tn.gov TEXAS There is no state personal income tax. State sales tax is 6.25 percent with local additions adding up to 2 percent. Write: Texas Comptroller, P.O. Box 13528, Capitol Station, Austin TX 78711-3528. Phone: (888) 334-4112 Website: www.comptroller.texas.gov Email: Link through website’s Contact Us page. UTAH Utah has a flat tax of 4.95 percent on all income. Individuals domiciled in Utah are considered residents and are subject to Utah state tax. Utah requires that all Federal Adjusted Gross Income reported on the federal return be reported on the state return regardless of the taxpayer’s physical presence in the state. Some taxpayers will be able to claim either a taxpayer tax credit or a retirement tax credit, or both (see website for explanation). Write: Utah State Tax Commission, Taxpayer Services Division, 210 North 1950 West, Salt Lake City UT 84134. Phone: (800) 662-4335 or (801) 297-2200 Website: www.tax.utah.gov Email: Link through the website’s Contact Us tab. VERMONT Individuals domiciled in Vermont are considered residents and are subject to tax on their entire income regardless of their physical presence in the state. Tax rates range from 3.35 per- cent on taxable income under $40,350 for singles and $67,450 for joint filers to a maximum of 8.75 percent on taxable income over $204,000 for singles and $248,350 for joint filers. Write: Vermont Department of Taxes, Taxpayer Services Division, 133 State St., Montpelier VT 05602. Phone: (802) 828-2865 Website: www.tax.vermont.gov