AFSA NEWS 60 JANUARY-FEBRUARY 2024 | THE FOREIGN SERVICE JOURNAL As always, members are advised to double-check with their state’s tax authorities. While AFSA makes every attempt to provide the most up-to-date information, readers with specific questions should always consult a tax expert in the state in question. We provide the website address for each state’s tax authority in the state-by-state guide, and an email address or link where available. Some states do not offer email customer service. We also recommend the Tax Foundation website, which provides a great deal of useful information, including a table showing tax rates for all states for 2023 at https://taxfoundation.org/ publications/state-individual-income-tax-rates-and-brackets/. STATE OVERVIEWS ALABAMA Individuals domiciled in Alabama are considered residents and are subject to tax on their entire income regardless of their physical presence in the state. Alabama’s individual income tax rates range from 2 percent on taxable income under $500 for single taxpayers and $1,000 for married filing jointly, to 5 percent on income over $3,000 for single taxpayers and $6,000 for married filing jointly. Write: Alabama Department of Revenue, 50 N. Ripley St., Montgomery AL 36130 Phone: (334) 242-1170, Option 1 Website: https://revenue.alabama.gov/ Email: Link through the website’s “Help Center” ALASKA Alaska does not tax individual income or intangible or personal property. It has no state sales and use, franchise, or fiduciary tax. However, some municipalities levy sales, property, and use taxes. Write: Tax Division, Alaska Department of Revenue, P.O. Box 110420, Juneau AK 99811-0420 Phone: (907) 465-2320 Website: https://tax.state.ak.us ARIZONA Individuals domiciled in Arizona are considered residents and are taxed on any income that is included in the Federal Adjusted Gross Income, regardless of their physical presence in the state. Arizona introduced a flat tax rate of 2.5 percent in 2023 for all filers. Write: Arizona Department of Revenue, Customer Care, 400 W. Congress St., Tucson AZ 85701 Phone: (602) 255-3381 Website: https://azdor.gov Email: taxpayerassistance@azdor.gov (for general questions) ARKANSAS Individuals domiciled in Arkansas are considered residents and are taxed on their entire income regardless of their physical presence in the state. The Arkansas tax rate ranges in three brackets from a minimum of 2 percent to a maximum of 4.9 percent of net taxable income over $8,500 for all filers. Write: Department of Finance and Administration, Income Tax Section, P.O. Box 8110, Little Rock AR 72203 Phone: (501) 682-1130 Website: https://arkansas.gov/dfa Email: individual.income@dfa.arkansas.gov CALIFORNIA Foreign Service employees domiciled in California must establish nonresidency to avoid liability for California taxes (see Franchise Tax Board Publication 1031). However, a “safe harbor” provision allows anyone who is domiciled in state but is out of the state on an employment-related contract for at least 546 consecutive days to be considered a nonresident. This applies to most FS employees and their spouses, but members domiciled in California are advised to study FTB Publication 1031 for exceptions and exemptions. The California tax rate ranges in eight brackets from 1 percent of taxable income under $10,099 for singles and $20,190 for joint filers, to 12.3 percent on taxable income over $677,275 for singles and $1,000,000 for joint filers. Nonresident domiciliaries are advised to file on Form 540NR. Write: Personal Income Taxes, Franchise Tax Board, P.O. Box 942840, Sacramento CA 94240-0040 Phone: (800) 852-5711 (inside the U.S.); (916) 845-6500 (outside the U.S.) Website: https://ftb.ca.gov Email: Link through the website’s “Contact Us” tab COLORADO Individuals domiciled in Colorado are considered residents and are subject to tax on their entire income regardless of their physical presence in the state. Colorado’s tax rate in 2023 is a flat 4.4 percent of federal taxable income, plus or minus allowable modifications. Write: Department of Revenue, Taxpayer Service Division, P.O. Box 17087, Denver CO 80217-0087 Phone: (303) 238-7378 Website: https://Tax.Colorado.gov Email: DOR_TaxpayerService@state.co.us CONNECTICUT Connecticut domiciliaries may qualify for nonresident tax treatment under either of two exceptions as follows: Group A—the domiciliary 1) did not maintain a permanent place of
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