The Foreign Service Journal, January-February 2023

AFSA NEWS 78 JANUARY-FEBRUARY 2023 | THE FOREIGN SERVICE JOURNAL of taxable income over $155,050 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 $16,040 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.sc.gov , or through the website’s Contact 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. After 2021 Tennessee is now completely free of income taxes as the Hall Tax on bond and note interest and stock dividends was repealed beginning Jan. 1, 2021. Write: Tennessee Department of Revenue (Attention: Tax- payer 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 the 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 pres- ence 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 percent on taxable income under $40,950 for singles and $68,400 for joint filers, to a maximum of 8.75 percent on tax- able income over $206,950 for singles and $251,950 for joint filers. Write: Vermont Department of Taxes, Taxpayer Services Division, 133 State St., Montpelier VT 05602. Phone: (802) 828-2865 or (866) 828-2865 Website: www.tax.vermont.gov Email: tax.individualincome@vermont.gov, or through the website’s Contact Us tab. VIRGINIA Individuals domiciled in Virginia are considered residents and are subject to tax on their entire income regardless of their physical presence in the state. Individuals domiciled else- where are also considered residents for tax purposes for the portion of any calendar year in which they are physically pres- ent in the state for 183 days or more. These individuals should file using Form 760. In addition, Virginia requires non-resi- dents to file Form 763 if their Virginia Adjusted Gross Income (which includes any federal salary paid during the time they are residing in Virginia) exceeds $11,950 for single filers and married filing separately, or $23,900 for married filing jointly. Individual tax rates are 2 percent if taxable income is less than $3,000; $60 plus 3 percent of excess over $3,000 if taxable income is between $3,000 and $5,000; $120 plus 5 percent of excess over $5,000 if taxable income is between $5,000 and $17,000; and $720 plus 5.75 percent if taxable