Tool | August 2013
State-by-State Guide to Taxes on Retirees
State Sales Tax
6.5% as of July 2013, down from 6.85% (food and prescription drugs are exempt). Counties may tack on up to 1.25% more.
Income Tax Range
There is no state income tax.
Benefits are not taxed.
Exemptions for Other Retirement Income
Retirement income is not taxed.
All property in the state is subject to tax by the state, counties, cities, towns and school districts. The assessed valuation for tax purposes is based on 35% of the fair market value of the property, which is revalued every year. Median property tax on the state's median home value of $207,600 is $1,749, according to the Tax Foundation.
Tax breaks for seniors: No property tax breaks are offered for seniors.
There is no inheritance tax or estate tax.
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