THE FOREIGN SERVICE JOURNAL | JANUARY-FEBRUARY 2024 69 CONNECTICUT Pensions and annuities are fully taxable for residents. Social Security is exempt if Federal Adjusted Gross Income is less than $75,000 for singles or $100,000 for joint filers. Eligible persons are authorized to subtract from their adjusted gross income 100 percent of pension and annuity income when calculating their Connecticut income tax liability, subject to income thresholds. Beginning in 2023, 25 percent of a traditional IRA distribution is exempt for joint filers (less than $100,000 of Federal Adjusted Gross Income) and other taxpayers (less than $75,000). The exemption percentage will increase to 50 percent in 2024, 75 percent in 2025, and 100 percent in 2026. Statewide sales tax is 6.35 percent. No local additions. DELAWARE Social Security is excluded from taxable income. Taxpayers who are at least 60 years of age can exclude $12,500 of retirement income from any source. Retired taxpayers under the age of 60 are entitled to a $2,000 exclusion. There is an additional standard deduction of $2,500 if age 65 or over if you do not itemize. Delaware does not impose a sales tax. DISTRICT OF COLUMBIA Social Security is excluded from taxable income. Pensions and annuities are fully taxed for residents. Sales and use tax is 6 percent, with higher rates for some commodities (liquor, meals, etc.). FLORIDA There is no personal income, inheritance, gift tax, or tax on intangible property. All property is taxable at 100 percent of its valuation—many exemptions are available. The state sales and use tax is 6 percent. There are additional county sales taxes, which could make the combined rate as high as 8 percent. GEORGIA Social Security is excluded from taxable income. Taxpayers who are 62 years of age or older, as well as individuals with a total and permanent disability, may exclude $5,000. Retirement income exceeding the maximum adjustable amount will be taxed at the normal rate. Sales tax is 4 percent statewide, with additions of up to 4.9 percent depending on jurisdiction. HAWAII Social Security is excluded from taxable income. Pension and annuity distributions from a government pension plan are not taxed in Hawaii. If an employee contributed to the plan, such as through a 401(k) with employer matching, only employer contributions are exempt. Hawaii charges a general excise tax of 4 percent instead of sales tax. IDAHO If the individual is age 65 or older, or age 62 and disabled,
RkJQdWJsaXNoZXIy ODIyMDU=