The Foreign Service Journal, January-February 2022

THE FOREIGN SERVICE JOURNAL | JANUARY-FEBRUARY 2022 81 and 1 percent local tax, with an extra 0.7 percent in Northern Virginia). WASHINGTON No personal income tax. Retirement income is not taxed. State sales tax is 7 percent; rates are updated quarterly. Local taxes may increase the total to as much as 20.5 percent. WEST VIRGINIA All retirement income is taxed with the first $8,000 (individual filers) or $16,000 (married filing jointly) being exempt. Out-of-state govern- ment pensions qualify for this exemption.West Virginia taxes Social Security benefits to the extent they are taxed at the federal level. However, this tax is being phased out over two years. In 2021, 65 percent of Social Security benefits are exempt, and the tax will be eliminated by 2022. State sales tax is 6 percent, with additions of between 0.5 and 1 percent in some jurisdictions. WISCONSIN Pensions and annuities are fully taxable. Social Security is excluded from taxable income. Those age 65 or over may take two personal deduc- tions totaling $950. Benefits received from a federal retire- ment system account estab- lished before Dec. 31, 1963, are not taxable. Those age 65 and older and with a Federal Adjusted Gross Income of less than $15,000 (single filers) or $30,000 (joint filers) may exclude $5,000 of income from federal retirement systems or IRAs. Those over age 65 may take an additional personal deduction of $250. State sales tax is 5 percent; local taxes may raise this rate up to 5.6 percent. WYOMING No personal income tax. State sales tax is 4 percent. Local taxes may add up to 2 percent on sales and 4 percent on lodging. n