The Foreign Service Journal, January-February 2023

THE FOREIGN SERVICE JOURNAL | JANUARY-FEBRUARY 2023 79 income is over $17,000. In addition, using Form R-1H, Virginia allows employers of household help to elect to pay state unemployment tax annually instead of quarterly. Write: Virginia Tax, Office of Customer Services, P.O. Box 1115, Richmond VA 23218-1115. Phone: (804) 367-8031 Website: www.tax.virginia.gov Email: Link through the website’s Contact Us tab. WASHINGTON There is no state income tax and no tax on intangibles such as bank accounts, stocks, and bonds. Capital gains are taxed at 7 percent. Residents may deduct Washington sales tax on their federal tax returns if they itemize deductions. State tax rate is 7 percent and local additions can increase that to as much as 9 percent in some areas. Write: Washington State Department of Revenue, Taxpayer Services, P.O. Box 47478, Olympia WA 98504-7478. Phone: (360) 705-6705 Website: www.dor.wa.gov Email: Link through the website’s Contact Us tab. WEST VIRGINIA There is no tax liability for out-of-state income if the indi- vidual has no permanent residence in West Virginia, has a permanent residence elsewhere, and spends no more than 30 days of the tax year in West Virginia. However, non-resident domiciliaries are required to file a return on Form IT-140 for all income derived fromWest Virginia sources. Tax rates rise in four steps from 4 percent of taxable income over $10,000 for single and joint filers, to 6.5 percent of taxable income over $60,000 for single and joint filers. Write: Department of Tax and Revenue, The Revenue Center, 1001 Lee St. E., Charleston WV 25337-3784. Phone: (800) 982-8297 or (304) 558-3333 Website: www.wvtax.gov Email: taxhelp@wv.gov WISCONSIN Individuals domiciled inWisconsin are considered residents and are subject to tax on their entire income regardless of where the income is earned. Wisconsin’s tax rate rises in four steps from 4.65 percent on income over $12,760 for single fil- ers or $17,010 for joint filers, 5.3 percent over $25,520 for single filers and $34,030 for joint filers, and 7.65 percent on income over $280,950 for single filers or $374,600 for joint filers. Write: Wisconsin Department of Revenue, Customer Ser- vice Bureau, P.O. Box 59, Madison WI 53785-0001, or P.O. Box 268, Madison WI 53790-0001. Phone: (608) 266-2486 Website: www.revenue.wi.gov Email: Link through the website’s Contact Us tab or email dorincome@wisconsin.gov. WYOMING There is no state income tax and no tax on intangibles such as bank accounts, stocks, or bonds. State sales tax is 4 percent. Local jurisdictions may add another 2 percent sales tax and 4 percent for lodging. Write: Wyoming Department of Revenue, 122 West 25th St., Suite E301, Herschler Building East, Cheyenne WY 82002- 0110. Phone: (307) 777-5200 Website: http://revenue.wyo.gov Email: dor@wyo.gov n 2022 STATE PENSION AND ANNUITYTAX The laws regarding the taxation of Foreign Service annuities vary greatly from state to state. In addition to those states that have no income tax or no tax on personal income, there are several states that do not tax income derived from pensions and annuities. Idaho taxes Foreign Service annuities received for years worked before Oct. 1, 1991, while exempting certain categories of Civil Service employees. Several websites provide more detail on individual state taxes for retirees, but one of the more comprehensive is the Retirement Living Information Center at www.retirementliving.com/taxes-by-state, which is recommended for further information. ALABAMA Social Security and U.S. government pensions are not taxable. The Alabama state sales tax is 4 percent. Depending on the municipal- ity, combined local and state sales tax could be as high as 11 percent. ALASKA No personal income tax. No state sales or use tax, but most municipalities levy sales and/or use taxes of between 2 and 7 percent and/or a property tax. If over age 65, you may be able to claim an exemption. ARIZONA U.S. government pensions are fully taxed but up to $2,500 may be excluded for each taxpayer. There is also a $2,100 exemption for each taxpayer age 65 or over. Social Security is excluded from taxable income. Arizona state sales and use tax is 5.6 percent, with additions up to 2.8 percent depending on the county and/or city.