AFSA NEWS 72 JANUARY-FEBRUARY 2024 | THE FOREIGN SERVICE JOURNAL OHIO Social Security is excluded from taxable income. Other retirement income is taxed. Taxpayers age 65 and over may take a credit of up to $200 per return. State sales tax is 5.75 percent. Counties and regional transit authorities may add to this, but the total must not exceed 8.75 percent. OKLAHOMA Individuals receiving FERS/ FSPS or private pensions may exempt up to $10,000, but not to exceed the amount included in the Federal Adjusted Gross Income. One hundred percent of a federal pension paid in lieu of Social Security (i.e., CSRS and FSRDS—“old system”—including the CSRS/ FSRDS portion of an annuity paid under both systems) is exempt. Social Security included in FAGI is exempt. State sales tax 4.5 percent. County and local tax rates vary for a total sales tax of up to 11 percent. The average Oklahoma sales tax is around 9 percent. OREGON Social Security is excluded from taxable income. Generally, all other retirement income is subject to Oregon tax when received by an Oregon resident. However, federal retirees who retired on or before Oct. 1, 1991, may exempt their entire federal pension; those who worked both before and after Oct. 1, 1991, must prorate their exemption using the instructions in the tax booklet. (The portion of that pension for the years before Oct. 1, 1991, is not taxed.) Oregon Retirement Income Credit allows for a credit of up to $6,250, depending on household income. Oregon has no sales tax. PENNSYLVANIA All retirement income is tax exempt for Pennsylvania residents age 60 and older. This includes public and private pensions, Social Security income, and Civil Service annuities. Pennsylvania sales tax is 6 percent. Other taxing entities may add up to 2 percent. RHODE ISLAND U.S. government pensions and annuities are fully taxable. Social Security is taxed to the extent it is federally taxed. Joint filers at retirement age with a Federal Adjusted Gross Income over $111,200 ($88,950 for single filers) pay tax on Social Security benefits. Higher-income seniors are not eligible for the Rhode Island income tax exemption on private, government, or military retirement plan payouts. Out-of-state government pensions are fully taxed. Sales tax is 7 percent; meals and beverages are taxed at 8 percent. SOUTH CAROLINA Retirement income is taxed, but individuals over age 65 can exempt $10,000 of qualified retirement income; ages 65 or over may claim a $15,000 deduction on qualified retirement income ($30,000 if both spouses are over 65), but must reduce this figure by any other retirement exclusion claimed. Social Security is excluded from taxable income. Sales tax is 6 percent plus up to 3 percent in some counties. Residents age 85 and over are exempt from 1 percent of the state sales tax. SOUTH DAKOTA No personal income tax or inheritance tax. State sales and use tax is 4.5 percent; municipalities may add up to an additional 2.75 percent. Residents who are age 66 and older and have an annual income under $12,880 (single) or total household income under $17,420 are eligible for a sales tax refund. TENNESSEE Social Security, pension income, and income from IRAs and TSP are not subject to personal income tax. State sales tax is 5 percent on food and 7 percent on other goods, with between 1.5 and 2.75 percent added, depending on jurisdiction. TEXAS No personal income tax or inheritance tax. State sales tax is 6.25 percent. Local options can raise the rate to 8.25 percent. UTAH Utah has a flat tax rate of 4.85 percent of all income. For taxpayers over age 65, there is a retirement tax credit of $450 for single filers and $900 for joint filers. Qualifying modified adjusted gross income levels are under $25,000 for single residents and under $32,000 for joint filers. Married taxpayers who file separate returns are eligible with a modified AGI under $34,000. See the state website for details. State sales tax ranges from 6.1 percent to 9.05 percent, depending on local jurisdiction. VERMONT U.S. government pensions and annuities are fully taxable. Social Security benefits are taxed for single filer income greater than $45,000 annually or more than $60,000 for joint filers. Outof-state government pensions and other retirement income are taxed at rates from 3.35 percent to 8.75 percent. State general sales tax is 6 percent; local option taxes may raise the total to 7 percent (higher on some commodities). VIRGINIA Social Security is excluded from taxable income. Individuals born before Jan 1, 1939, can claim a $12,000 deduction. If you were born between Jan. 2, 1939, and Jan. 1, 1956, your age deduction is based on your income. The maximum $12,000 deduction is reduced by one dollar for each dollar by which Adjusted Gross Income exceeds $50,000 for single taxpayers and $75,000 for married taxpayers. All taxpayers over age 65 receive an additional personal exemption of $800. The estate tax was repealed for
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