Table of Contents Table of Contents
Previous Page  81 / 100 Next Page
Basic version Information
Show Menu
Previous Page 81 / 100 Next Page
Page Background

THE FOREIGN SERVICE JOURNAL

|

JANUARY-FEBRUARY 2017

81

extent it is federally taxed.

Sales tax is 7 percent; meals

and beverages 8 percent.

SOUTH CAROL I NA

Individuals under age 65 can

claim a $3,000 deduction on

qualified retirement income;

those age 65 or over may

claim a $15,000 deduc-

tion on qualified retirement

income ($30,000 if both

spouses are over 65), but

must reduce this figure by

any other retirement deduc-

tion claimed. Social Security

is excluded from taxable

income. Sales tax is 6 per-

cent plus 1 percent in some

counties. Residents aged 85

and over pay 5 percent.

SOUTH DAKOTA

No personal income tax or

inheritance tax. State sales

and use tax is 4 percent;

municipalities may add up

to an additional 2 percent.

Residents who are age 66

and older and have a yearly

income of under $10,250

(single) or in a household

where the total income was

under $13,250 are eligible

for a sales tax OR a property

tax refund.

TENNESSEE

Social Security, pension

income and income from

IRAs and TSP are not sub-

ject to personal income tax.

Most interest and dividend

income is taxed at 6 percent

if over $1,250 (single filers)

or $2,500 (married filing

jointly). However, for tax

year 2015 and subsequently,

those over 65 with total

income from all sources

of less than $37,000 for a

single filer and $68,000 for

joint filers are completely

exempt from all taxes on

income. State sales tax is

5 percent on food; 7 per-

cent on other goods, with

between 1.5 and 2.75 per-

cent 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 5

percent of all income. For

taxpayers over 65 there is a

retirement tax credit of $450

for single filers and $900 for

joint filers. This is reduced

by 2.5 percent of income

exceeding $25,000 for single

filers and $32,000 for joint

filers. See the state website

for details. State sales tax

is 4.7 percent; local option

taxes may raise the total to

as much as 9.95 percent.

VERMONT

U.S. government pensions

and annuities are fully tax-

able. Social Security is taxed

to the extent it is federally

taxed. State general sales

tax is 6 percent; local option

taxes may raise the total to

7 percent (higher on some

commodities).

V I RG I N I A

Individuals over age 65 can

take a $12,000 deduction.

The maximum $12,000

deduction is reduced by