The Foreign Service Journal, January-February 2024

AFSA NEWS 68 JANUARY-FEBRUARY 2024 | THE FOREIGN SERVICE JOURNAL deductions. State tax rate is 6.5 percent and local additions can increase that to as much as 9.29 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: https://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 individual 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, nonresident domiciliaries are required to file a return on Form IT-140 for all income derived from West Virginia sources. Tax rates rise in four steps from 4 percent of taxable income over $10,000 for all filers, to 6.5 percent of taxable income over $60,000 for all 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: https://tax.wv.gov Email: TaxHelp@WV.Gov WISCONSIN Individuals domiciled in Wisconsin 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 $13,810 for single filers or $18,420 for joint filers, 5.3 percent over $27,630 for single filers and $36,840 for joint filers, and 7.65 percent on income over $304,170 for single filers or $495,550 for joint filers. Write: Wisconsin Department of Revenue, Customer Service Bureau, P.O. Box 8949, Madison, WI 53708-8949 Phone: (608) 266-2486 Website: https://revenue.wi.gov Email: DORIncome@wisconsin.gov, or link through the website’s “Contact Us” tab 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 820020110 Phone: (307) 777-5200 Website: https://revenue.wyo.gov Email: dor@wyo.gov n 2023 STATE PENSION AND ANNUITY TAX 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 information on individual state taxes for retirees, but the Retirement Living Information Center at https://retirementliving.com/taxes-by-state is one of the more comprehensive and 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 municipality, 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 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. 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. ARKANSAS The first $6,000 of income from any retirement plan or IRA is exempt (to a maximum of $6,000 overall). Social Security is excluded from taxable income. There is no estate or inheritance tax. State sales and use tax is 6.5 percent; city and county taxes may add another 6 percent. CALIFORNIA Pensions and annuities are fully taxable. Social Security is excluded from taxable income. The sales and use tax rate varies from 7.25 percent (the statewide rate) to 11 percent in some areas. COLORADO Up to $24,000 of pension or Social Security income can be excluded if an individual is age 65 or over. Up to $20,000 is exempt if age 55 to 64. State sales tax is 2.9 percent; local additions can increase it to as much as 11.2 percent.

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