Taxes by State
Please choose a State: Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico

KANSAS
Sales Taxes
State Sales Tax: 5.3% (prescription drugs exempt); Cities and counties may add another 3%. Residents with income less than $28,600 and meet other qualifications can receive a sales tax refund on food.
Gasoline Tax: 25 cents/gallon
Diesel Fuel Tax: 27 cents/gallon
Cigarette Tax: 79 cents/pack of 20

Personal Income Taxes
Tax Rate Range: Low - 3.5%; High - 6.45%
Income Brackets: * Lowest - $15,000; Highest - $30,000
Number of Brackets: 3
Personal Exemptions: Single - $2,250; Married - $4,500;
Dependents - $2,250
Standard Deduction: Single - $3,000; Married filing jointly - $6,000
An additional $700 can be claimed if you are 65 years or older. An additional $700 can also be claimed if you are blind. If your spouse is 65 years or older, you can claim an additional $700. An additional $700 can also be claimed if your spouse is blind. If both you and your spouse are 65 years or older and blind, your standard deduction would be $8,800.
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: None
Retirement Income Taxes: Military, civil service, state/local government pensions are exempt. Out-of-state government pensions are fully taxed. Railroad retirement is fully exempt. Social Security is exempt for residents with a federal adjusted gross income of $50,000 or less (2007). For tax year 2008 and thereafter, taxpayers with incomes of $75,000 or less will be exempt from any state tax on their Social security benefits.
Retired Military Pay: Not taxed.
Military Disability Retired Pay: Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Property Taxes
Taxable property is assessed at its fair market value. Homeowners 55 and older who earn $28,000 or less are eligible for a refund of up to $700 under the Homestead Property Tax Refund Act. You must also meet one of the following requirements: Be 55 years of age or older, or be blind or disabled, or have a dependent child under 18 who lived with you all year whom you claim as a personal exemption. Additionally, 50 percent of Social Security benefits will be excluded from the definition of income for the purposes of qualifying for the program, resulting in additional property tax relief for seniors.

The effective property tax burden for renters is 15 percent of total rent. A homeowner with a residence valued at more than $350,000 or more is prohibited from participating in the program. Call 877-526-7738 or 785-296-2365 for property tax details or click here.

Inheritance and Estate Taxes
Beginning in 2007 a new estate tax is effective. It will apply through 2009. After that there will not be an estate tax. Estates valued at over $1,000,000 will be subject to the tax. The tax rates for deaths occurring in 2007 begin at 3%, for 2008 the rates begin at 1%, and for 2009 the rates begin at 0.5%.

For further information, visit the Kansas Department of Revenue site.
* For joint returns, the taxes are twice the tax imposed on half the income.

KENTUCKY
Sales Taxes
State Sales Tax: 6% (food and prescription drugs, residential utilities except telephone, and medical supplies are exempt)
Gasoline Tax: 18.5 cents/gallon
Diesel Fuel Tax: 15.5 cents/gallon
Cigarette Tax: 30 cents/pack of 20

Personal Income Taxes
Tax Rate Range:: Low - 2.0%; High - 6.0%
Income Brackets: Lowest - $3,000; Highest - $75,000
Number of Brackets: 5
Personal Tax Credits: Single - $20; Married - $40; Dependents - $20; if age ;65 or older, take an additional tax credit of $40.
Standard Deduction: May either itemize deductions or take an $1,970 standard deduction.
Medical/Dental Deduction:: Federal amount. The state allows a reduction of taxable income for 100% of long-term care insurance and health insurance premiums.
Federal Income Tax Deduction: None
Retirement Income Taxes: Social Security, Railroad Retirement benefits, and Roth IRA proceeds are exempt. Exclusion of up to $41,110 for military, civil service, state/local government, qualified private pensions, and annuities. The exclusion will no longer be subject to an annual adjustment on the consumer price index after 2006.
Retired Military Pay: Not taxed. If retired after 1997, pay is subjected to tax if amount exceeds $41,110 - See Kentucky Schedule P.
Military Disability Retired Pay:
Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Property Taxes
All real property in Kentucky is subject to state and local property tax. The state real property tax rate is 13.6 cents per each $100 of assessed value. Real property is assessed on 100% of fair market value. To review the latest rates, click here. Kentucky has a homestead exemption on the assessed value of a qualifying single-unit residential property which is adjusted every two years according to the cost of living index. For homeowners 65 and older or totally disabled, $29,400 of the assessed value of their property is exempt from state taxes. Call 502-564-4581 for details.

Inheritance and Estate Taxes
Kentucky has an inheritance tax but all Class A beneficiaries (spouse, parent, child, grandchild, brother, and sister) are exempt. As for the estate tax, if the total amount of the estate is less than the federal applicable exclusion, federal estate and gift tax is not due.

For further information, visit the Kentucky Department of Revenue site or call 502-564-4581.

LOUISIANA
Sales Taxes
State Sales Tax: 4%; 3.8% for electricity, water utility services and steam; Interstate telecommunication services are taxable at 2%. Political subdivisions also levy their own sales tax that could bring the total to 10.75%. Food, drugs, wheelchairs and prosthetic devices are taxed locally.
Gasoline Tax: 20 cents/gallon
Diesel Fuel Tax: 20 cents/gallon
Cigarette Tax: 36 cents/pack of 20

Personal Income Taxes
Tax Rate Range: Low - 2%; High - 6%
Income Brackets: * Lowest - $12,500; Highest - $25,000
Number of Brackets: 3
Personal Exemptions:** Single - $4,500; Married - $9,000; Dependents - $1,000; 65 and older - $1,000
Standard Deduction: Included in personal exemptions
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: Full
Retirement Income Taxes: Social Security, military, civil service, state/local government pensions are exempt. For qualified private pensions a person age 65 and older can receive a tax exemption of up to $6,000. If married and filing jointly, and each person has a private pension income, then up to $12,000 can be exempt. Out-of-state government pensions qualify for the private pension/retirement exemption.
Retired Military Pay: Not taxed.
Military Disability Retired Pay: Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Property Taxes
Taxes are assessed and collected at the local level -- 64 parishes and 7 municipal districts. The Louisiana State Tax Commission has a regulatory role regarding property assessments. Property assessments are based on 10% of the fair market value of the property. Homeowners receive a homestead exemption in the amount of $7,500. Exemption is applied against the assessed value of the home which is equal to 10% of the fair market value. Therefore, only homes with a market value over $75,000 would be subject to the parish (county) property tax. However, this exemption does not generally apply to municipal taxes.

A Special Assessment applies to the homestead of persons who are 65 years of age and older if the adjusted gross household income is below a certain level. For the tax year 2006, that level was $58,531. The level may change from year to year, so it is advisable to check with the assessor's office to determine qualifications.. This special assessment will freeze the assessed value of the homestead for as long as the applicant owns and resides in the home and income does not exceed the maximum allowed. It will be lost if improvements in excess of 25% of the home's value are added. Call 225-925-7830 for details.

Inheritance and Estate Taxes
Heirs pay tax on the taxable value of their inheritance, legacy, and donation or gift in contemplation of death, at the following rates determined by their relationship to the deceased. Direct descendants by blood or affinity or ascendants - 2% the first $20,000 taxable value and 3% of the taxable value in excess of $20,000. Collateral relations of the decedent (including brothers and sisters by affinity and their decendents) - 5% of the first $20,000 taxable value plus 7% of the taxable value in excess of $20,000. If the amount of inheritance taxes paid to the state is less than the amount of the maximum credit for state death taxes set forth in Internal Revenue Code Section 2011(b), Louisiana levies an additional death tax, known as the Louisiana estate transfer tax, equal to the amount by which the maximum credit provided in Internal Revenue Code Section 2011(b) exceeds the amount of inheritance taxes levied. The estate transfer tax does not impose any additional tax burden on the decedent's estate, but merely shifts payment from the federal government to the state.

For further information, visit the Louisiana Department of Revenue site or call 255-219-0102. Additional information can be found at the Louisiana Tax Commission site.

* For joint returns, the taxes are twice the tax imposed on half the income.
** Combined personal exemption and standard deduction.

MAINE
Sales Taxes
State Sales Tax: 5.0% (food and prescription drugs exempt)
Gasoline Tax: 28.3 cents/gallon
Diesel Fuel Tax: 28.6 cents/gallon
Cigarette Tax: $2.00/pack of 20

Personal Income Taxes
Tax Rate Range: Low - 2%; High - 8.5%
Income Brackets: * Lowest - $4,550; Highest - $18,250
Number of Brackets: 4
Personal Exemptions: Single - $2,850; Married - $5,700; Dependents - $2,850
Standard Deduction: Single - $5,150; Married filing jointly - $8,600
Additional Deductions: Single or head of household over 65 - $1,250; One spouse over 65 - $950; Both over 65 - $1,900
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: None
Retirement Income Taxes: Social Security is exempt. $6,000 exemption for pension income, but not IRAs, minus amount of Social Security benefit. Out-of-state government pensions qualify for the $6,000 exemption.
Retired Military Pay: Follows federal tax rules.
Military Disability Retired Pay: Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Property Taxes
All real estate and personal property of Maine residents is subject to local and, if authorized by the legislature, state property taxes. Local property taxes, based upon assessed valuation, are assessed, levied and collected by municipalities. Homestead and veteran's exemption programs, administered by the state, are available to reduce property taxes for those who qualify. The Homestead Exemption program provides a measure of property tax relief for certain individuals that have owned homestead property in Maine for at least 12 months and make the property they occupy on April 1st their permanent residence. Property owners receive an exemption of $13,000 on the assessed value of their home. A Veteran exemption of $5,000 is available to those who served during a recognized war period, are 62 years or older, are receiving 100% disability as a veteran or became 100% disabled while serving. Paraplegic veterans who received a federal grant for a specially adapted housing unit may receive a $47,500 exemption. A blind exemption of $4,000 is available to those who are legally blind. A property tax refund program is available if your taxes exceed 4% of your income or, if rent paid was more than 20% of your income. For information on the 2006 property tax and rent refund program click here. For more information, call 207-287-2011.

Inheritance and Estate Taxes
There is no inheritance tax. Maine has partially decoupled from the federal estate tax law. The amount exempt from the Maine estate tax is different from the amount exempt from federal estate tax. A person dying in 2006 would have their estate exempt for up to $1,0000,000.

For further information, visit the Maine Revenue Services site.
* For joint returns, the taxes are twice the tax imposed on half the income.

MARYLAND
Sales Taxes
State Sales Tax: 5.0% (food, prescription and non-prescription drugs exempt)
Gasoline Tax: 23.5 cents/gallon
Diesel Fuel Tax: 24.3 cents/gallon
Cigarette Tax: $1.00/pack of 20

Personal Income Taxes
Tax Rate Range: Low - 2%; High - 4.75%; Maryland counties and Baltimore City may levy an income tax ranging from 1.25% to 3.15% of taxable income. Click here for local rates.
Income Brackets: Lowest - $1,000; Highest - $3,000
Number of Brackets: 4
Personal Exemptions: Single - $2,400; Married - $4,800; Dependents - $2,400
Additional Exemptions: 65 or older - $1,000 each additional dependent
Standard Deduction: $1,500 or 15% of Maryland adjusted gross income to maximum of $3,000 for single returns; $2,000 to $4,000 for married filing jointly.
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: None
Retirement Income Taxes: Social Security and Railroad Retirement income are exempt. Pensions are exempt up to $22,600, minus amount of Social Security received and Railroad Retirement benefits. Out-of-state government pensions do not qualify for the exemption. Military pensioners are eligible for an additional pension exemption of up to $2,500. To qualify they must have a federal adjusted gross income of $22,500 or less. Click here for details.
Retired Military Pay: Up to $5,000 may be exempt if retiree is over 55 and meets gross income limit. Some retirement pay may be excluded for those 65 and older or totally disabled. Survivor benefits are taxable. Click here for details.
Military Disability Retired Pay: Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Property Taxes
Real property is valued at its full cash value. Property tax rates vary widely. No restrictions or limitations on property taxes are imposed by the state, meaning cities and counties can set tax rates at the level they deem necessary to fund governmental services. These rates can increase, decrease or remain the same from year to year.

The Homeowners' Property Tax Credit Program (circuit breaker) allows credits against the homeowner's property tax bill if the property taxes exceed a fixed percentage of the person's gross income. In other words, it sets a limit on the amount of property taxes any homeowner must pay based upon his or her income. The plan was called circuit breaker because it shut off the property tax at a certain point just like an electric circuit breaker shuts off the current when the circuit becomes overloaded. It provides annual property tax credits to homeowners who qualify by reason of income. It has no relationship to age. To be eligible, a person must own their property, live in it for at least six months a year, and have a net worth, not including the value of the property on which you are seeking the credit, of less than $300,000.

A property tax deferral program allows property owners 65 or over to defer the increase in their property tax bill. Local governments must approve the program. The deferred taxes become a lien on the property and must be repaid when the property is transferred. A Renters' Tax Credit program provides up to $750 a year for those age 60 and over or 100% disabled if they qualify on the basis of income.

For details on property taxes, click here or call 410-767-1184.

Inheritance and Estate Taxes
Maryland collects an inheritance tax. Property passing to a spouse, child or other lineal descendent, spouse of a child or other lineal descendant, parent, grandparent or sibling, is exempt from taxation. Property passing to other individuals is subject to a 10% tax rate. The Maryland estate tax is now decoupled from the Federal estate tax. Estates above $1,000,000 will be subject to the Maryland estate tax even though they may not be subject to Federal estate tax. Senate Bill 508, which became effective on 7/1/04, retroactively applies to the estates of decedents dying after 12/31/03. For more information on inheritance taxes click here. For estate tax information, click here.

For further information, visit the Maryland Comptroller of the Treasury site.

MASSACHUSETTS
Sales Taxes
State Sales Tax: 5% (food; prescription drugs; fuel costs; gas, oil, electricity; clothing costing up to $175, are exempt). For a complete list, click here.
Gasoline Tax: 23.5 cents/gallon
Diesel Fuel Tax: 23.5 cents/gallon
Cigarette Tax: $1.51/pack of 20

Personal Income Taxes
Tax Rate Range: Flat rate of 5.3% of federal adjusted gross income
Personal Exemptions: Single - $3,575; Married - $7,150;
Dependents - $1,000
Standard Deduction: None
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: None
Retirement Income Taxes: Social Security, civil service, state/local government pensions are exempt. Pension income from other state or local governments that do not tax pension income from Massachusetts public employees is exempt from Massachusetts taxable income.
Retired Military Pay: Not taxed.
Military Disability Retired Pay:
Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Property Taxes
Massachusetts does not provide for a general homestead exemption but does have a Homestead Act. The Homestead Act permits a homeowner who occupies a house as his/her principal residence to shield up to $5000,000 in equity in that house from creditors. By simply filing a Declaration of Homestead with the appropriate Registry of Deeds, a homeowner may be able to protect his/her residence from the claim of a future creditor. The Homestead Act permits only one spouse to file for the equity protection if each has an ownership interest in the home. The protection offered to the disabled and the elderly is even more comprehensive because it allows a husband and wife who own their own home to each file for the $500,000 equity protection. Click for details.

Massachusetts also has a circuit breaker program that offers a real estate tax credit for persons age 65 and older. Certain taxpayers may be eligible to claim a refundable credit on their state income taxes for the real estate taxes paid during the tax year on the residential property they own or rent in Massachusetts that is used as their principal residence. If the credit due the taxpayer exceeds the amount of the total income tax payable for the year by the taxpayer, the excess amount of the credit will be refunded to the taxpayer without interest. For tax year 2006, the maximum credit allowed for both renters and homeowners is $870. To be eligible for the credit for the 2006 tax year; the taxpayer or spouse, if married filing jointly, must be 65 years of age or older at the close of the 2006 tax year; the taxpayer must own or rent residential property in Massachusetts and occupy the property as his or her principal residence; the taxpayer's "total income" cannot exceed $46,000 for a single filer who is not the head of a household, $58,000 for a head of house hold, or $70,000 for taxpayers filing jointly; and for homeowners, the assessed valuation as of January 1, 2006, before residential exemptions but after abatements, of the homeowner's personal residence cannot exceed $684,000. Click for details.

Inheritance and Estate Taxes
There is no inheritance tax and a limited estate tax on estates valued at $1,000,000 or more.

For further information, visit the Massachusetts Department of Revenue site.

MICHIGAN
Sales Taxes
State Sales Tax: 6% (food and prescription drugs exempt; home heating fuels are taxed at 4%)
Gasoline Tax: 30.8 cents/gallon
Diesel Fuel Tax: 30.6 cents/gallon
Cigarette Tax: $2.00/pack of 20

Personal Income Taxes
Tax Rate Range: Flat rate of 3.9% of federal adjusted gross income with modifications; some cities impose additional income taxes.
Personal Exemptions: Single - $3,300; Married - $6,600; Dependents - $3,300; Persons 65 or older can claim an additional $2,100 exemption.
Standard Deduction: None
Medical/Dental Deduction: Medical expenses in excess of 3% of household income are deductible.
Federal Income Tax Deduction: None
Retirement Income Taxes: Social Security, military, federal, and state/local government pensions are exempt. Private pension income is exempt up to $40,920 (individual filers) or $81,840 (married filing jointly). These private pensions are reduced by the amount of any public pension deduction claimed. Taxpayers 65 or older may deduct interest, dividends, and capital gains up to $9,128 (individual filers) or $18,255 (married filing jointly). These deductions are reduced by any pension exemption taken. Federal and Michigan public pensions are totally exempt. Public pensions include benefits received from the federal civil service, State of Michigan public retirement systems and political subdivisions of Michigan, military retirement and Tier 2 railroad retirement. If the conditions of the plan under step one are met, then these payments are totally exempt from Michigan income tax. Michigan residents can treat the public pensions received from the following states as totally exempt: Alaska, Florida, Hawaii, Illinois, Massachusetts, Mississippi, Nevada, New Hampshire, Pennsylvania, South Dakota, Tennessee, Texas, Washington, and Wyoming. Michigan residents who receive public pensions from other states are subject to the private pension exemption limits. Michigan residents who receive public pensions from states not listed above are subject to the private pension exemption limits. Private pension subtractions are limited to $40,920 on a single return and $81,840 on joint returns for tax year 2006. Click here for FAQs.
Retired Military Pay: Not taxed. Survivor benefits are exempt if the amounts are exempt from federal income tax or classified as military compensation or military retirement pay. Military retirement benefits that pass to the spouse of a deceased member of the military are exempt. Retirement benefits passing to other beneficiaries are taxed.
Military Disability Retired Pay: Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Property Taxes
Property in Michigan is generally assessed at 50% of its true cash value. Some seniors, disabled persons, veterans, surviving spouses of veterans and farmers may be able to delay paying property taxes. It depends on the county of residence and your income level. If you own the home you live in, you may be exempt from a portion of local school taxes under the Homeowner's Principal Residence Exemption Program, formerly known as the Michigan Homestead Exemption Program. It allows homeowners an exemption from their local School Operating Millage. In accordance with Public Act 237 of 1994, homeowners that occupy their property as their principal residence may exempt up to 18 mills. A homestead property tax credit is available to homeowners or renters. The credit is based on the property tax on a homestead that is subject to local property taxes or your household income. Only those whose household income is less than $82,650 are eligible. For information on the homestead credit, call 517-334-7076. For other property tax matters, call 517-373-0500. To view the state's property tax estimator, click here.

Inheritance and Estate Taxes
There is no inheritance tax and a limited estate tax related to federal estate tax collection.

For further information, visit the Michigan Taxes web site. Seniors are invited to click here or call a special assistance number: 800-487-7000.

MINNESOTA
Sales Taxes
State Sales Tax: 6.5% (food, clothing, prescription and non-prescription drugs exempt); Liquor and beer taxed at 9.15%. A few cities and counties also add a sales tax which can be as high as 1.0%.
Gasoline Tax: 22 cents/gallon
Diesel Fuel Tax: 22 cents/gallon
Cigarette Tax: $1.49/pack of 20

Personal Income Taxes
Tax Rate Range: Low - 5.35%; High - 7.85%
Income Brackets: * Lowest - $20,510; Highest - $67,361
Number of Brackets: 3
Personal Exemptions: ** Single - $3,200; Married - $6,400; Dependents - $3,200
Standard Deduction: Single - $4,740; Married filing jointly - $9,500
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: None
Retirement Income Taxes: Social Security income is taxed by Minnesota to the same extent it is on your federal return. If your only income is Social Security, you would not be required to file an income tax return. Pensions, including federal pensions, received while a Minnesota resident are taxable by Minnesota regardless of where your pension was earned. Railroad retirement benefits paid to you by the Railroad Retirement Board are not taxed by Minnesota. If these benefits are included in your federal taxable income, you may subtract them from your taxable income. Taxpayers 65 and older may subtract some income if federal adjusted gross income is under certain limits.
Retired Military Pay: Pensions are taxable.
Military Disability Retired Pay: Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Property Taxes
There is a Senior Citizen Property Tax Deferral Program allows people 65 years of age or older, whose household incomes are $60,000 or less, to defer a portion of their property tax on their home. This deferral program has two primary advantages for senior citizens. It limits the maximum amount of property tax you pay to three percent of your total household income, and it provides predictability. The amount of tax you pay will not change for as long as you participate in this program. It is not a tax forgiveness program. It is a low interest loan from the state. The deferred tax is paid by the state to your county. Interest will be charged on this loan. The interest rate will be adjusted annually, but will never exceed five percent. A lien will attach to your property.

Minnesota has two property tax refund programs for homeowners: the regular property tax refund, and the special property tax refund. You may be eligible for one or both, depending on your income and the size of your property tax bill.

Inheritance and Estate Taxes
There is no inheritance tax and a limited estate tax related to federal estate tax collection.

For further information, visit the Minnesota Department of Revenue site.
* The tax brackets reported are for single taxpayers. For married taxpayers filing jointly, the same rates apply to income brackets ranging from $31,150 to $123,751 (2007).
** Minnesota allows personal exemption or standard deductions as provided in the Internal Revenue Code.

MISSISSIPPI
Sales Taxes
State Sales Tax: 7% (prescription drugs, residential utilities, motor fuel, newspapers, healthcare services, and payments made by Medicare and Medicaid are exempt); County and city taxes may add an additional 3% to the state rate.
Gasoline Tax: 18.8 cents/gallon
Diesel Fuel Tax: 18.8 cents/gallon
Cigarette Tax: 18 cents/pack of 20

Personal Income Taxes
Tax Rate Range: Low - 3%; High - 5%
Income Brackets: Lowest - $5,000; Highest - $10,000
Number of Brackets: 3
Personal Exemptions: Single - $6,000; Married - $12,000; Dependents - $1,500
Additional Exemption: 65 or older - $1,500
Standard Deduction: Single - $2,300; Married filing jointly - $4,600
Medical/Dental Deduction: Partial
Federal Income Tax Deduction: None
Retirement Income Taxes: Qualified retirement income is exempt from state income tax. Social Security is not taxed, regardless of total income. Retirement income from IRAs, 401s/403s, Keoghs and qualified public and private pension plans is not taxable. Interest income from federal securities and obligations of Mississippi and its political subdivisions are all exempt.
Retired Military Pay: Retired pay is exempt after January 1, 1994. The exemption is also available to the spouse or other beneficiary upon the death of the primary retiree. Widows' pensions received from the VA are not taxable.
Military Disability Retired Pay: Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Property Taxes
Property and automobiles are both subject to ad valorem taxes - meaning that the tax is assessed in relationship to the value of the property. Single family residential property is taxed at 10% of its assessed value. All other personal property is assessed at 15% of its value. Motor vehicles are taxed at 30% of their value. The state offers a homestead exemption to all eligible taxpayers. The exemption is from all ad valorem taxes assessed to a property and is limited to the first $7,500 of assessed value and has an upper limit of $300 of actual exempted tax dollars. Persons 65 and older qualify for an additional exemption. It only applies where a husband and wife have joint ownership of the property.

For additional information, call 601-923-7631 or click here.

Inheritance and Estate Taxes
There is no inheritance tax. An estate tax is imposed on the value of a decedent's estate when the total gross estate exceeds the federal exemption of $1,000,000. The exemption amount will follow the federal exclusion under 26 USC 2010.

For further information, visit the Mississippi State Tax Commission site or call 601-923-7000.

MISSOURI
Sales Taxes
State Sales Tax: 4.225% (prescription drugs exempt; food is taxed at 1.225%)
Gasoline Tax: 17.6 cents/gallon
Diesel Fuel Tax: 17.6 cents/gallon
Cigarette Tax: 17 cents/pack of 20

Personal Income Taxes
Tax Rate Range: - 1.5%; High - 6%
Income Brackets: Lowest - $1,000; Highest - $9,000 [Tax is imposed at a rate of 1-1/2 percent on the first $1,000 of taxable income and increases at a rate of 1/2 percent for every $1,000 increment up to $9,000. The tax rate is 6 percent on Missouri taxable income exceeding $9,000.]
Number of Brackets: 10
Personal Exemptions: Single - $2,100; Married - $4,200; Dependents - $1,200; Plus $1,000 for dependent 65 or older.
Standard Deduction: Single - $5,150; Married filing jointly - $10,300. Deduction increases for those age 65 and older.
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: The state allows a deduction on your individual income tax return for the amount of federal tax you paid. The deduction is for the amount actually paid as indicated on your federal tax form.
Retirement Income Taxes: For taxable years beginning in 2007, Missouri resident taxpayers are allowed a state income tax deduction for Social Security benefits received by individuals 62 years of age or older, Social Security disability benefits, and nonprivate retirement system benefits received by individuals 62 years of age or older, to the extent these benefits are included in federal adjusted gross income. Generally, the maximum amount of benefits that can be deducted is as follows: 20% for 2007; 35% for 2008; 50% for 2009; 65% for 2010; 80% for 2011; and 100% for 2012 and thereafter. However, in the case of nonprivate retirement benefits, the deduction is further limited to $6,000, and the amount of benefits for which the deduction may be claimed is limited to the maximum Social Security benefit amount for the tax year. A single taxpayer, head of household, qualifying widow(er), or married taxpayer filing a separate return with an adjusted gross income of $85,000 or less or a married taxpayer filing a combined return with an adjusted gross income of $100,000 or less will qualify for the maximum deduction. If a taxpayer's adjusted gross income exceeds the ceiling amount for the taxpayer's filing status, the deduction will be decreased by $1 for every $1 by which the taxpayer's income exceeds the ceiling amount. If a taxpayer receives both Social security benefits and nonprivate retirement benefits, the maximum deduction for the nonprivate retirement benefits will be decreased by $1 for every $1 of Social security benefits received by the taxpayer that are not included in Missouri adjusted gross income.
Retired Military Pay: For individuals with a modified state adjusted gross income of less than $25,000 or a married couple with a combined income of $32,000, a government pension exemption of up to $6,000 is allowed. If a husband and wife each receive a government pension, each can qualify for an exemption of up to $6,000. SBP benefits are taxed following federal rules.
Military Disability Retired Pay: Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Property Taxes
Residential property is assessed at 19% of its fair market value. Personal property is assessed at rates ranging from 5% to 33.3%. The Missouri Property Tax Credit Claim gives credit to certain senior citizens and 100 percent disabled individuals for a portion of the real estate taxes or rent they have paid for the year. The credit is for a maximum of $750 and can only be claimed on the home they occupied during the period being claimed. The actual credit is based on the amount of real estate taxes or rent paid and total household income.

The Homestead Preservation Credit gives qualified senior citizens and 100 percent disabled individuals a credit on their real estate property tax if those taxes increase 2.5 percent in a non-reassessment year or 5 percent in a reassessment year. The credit would be for the amount that exceeds the 2.5 or 5 percent increase in taxes. The act requires a legislative appropriation to fund the credit. If the funding is less than 100 percent, the credit will be a flat statewide percentage based on the appropriation amount. This credit will be applied against the taxes for the following year. Call 573-751-3503 for details or click here.

Inheritance and Estate Taxes
Since the IRS will no longer allow a state death tax credit for deaths occurring on or after January 1, 2005, no Missouri estate tax is imposed. Therefore, no estate tax return must be filed for deaths occurring on or after January 1, 2005.

For information about moving to Missouri, click here. For further information about state taxes, visit the Missouri Department of Revenue site.

MONTANA
Sales Taxes
State Sales Tax: No general sales tax. A new 3% tax on accommodations and campgrounds is added to the 4% tax on rental vehicles.
Gasoline Tax: 27.8 cents/gallon
Diesel Fuel Tax: 28.6 cents/gallon
Cigarette Tax: $1.70 cents/pack of 20

Personal Income Taxes
Tax Rate Range: - 1%; High - 6.9%
Income Brackets: Lowest - $2,399; Highest - $14,500
Number of Brackets: 7
Personal Exemptions: Single - $1,980; Married - $3,960;
Dependents - $1,980
Additional Exemptions: 65 or older - $1,980
Standard Deduction: (2007) 20% of AGI. If single not less than $1,650 or more than - $3,710; If married filing jointly not less than $3,300 or more than $7,420.
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: Full
Retirement Income Taxes: There is a $3,600 exemption for public pensions and qualified private pensions. Social Security is taxable for those whose income, including Social Security, exceeds $16,000 (single), $25,000 (head of household) or $32,000 (jointly).
Retired Military Pay: See above. Survivor benefits are taxed following federal tax rules.
Military Disability Retired Pay:
Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Property Taxes
All property (real or personal) is subject to state and local taxes. The assessed valuation of real property is based on 100% of its fair market value, then reduced by a a phase-in factor and taxed as a percentage thereof. The state established the tax rate to determine the assessed valuation while local taxing units establish the mill levies to determine the property tax. Personal property is also taxed, the most common being motor vehicles. All residential properties receive a 32% exemption (for 2005) but residents must file for the exemption. This homestead exemption incrementally increases until it hits 34% for tax year 2008 and later. Residential property of certain disabled veterans, and the spouses of deceased veterans, is exempt from property taxation. Montana property owners can have their property taxes reduced if they meet certain qualifications. Any homeowner or renter age 62 or over can apply for a credit if they have lived in Montana for 9 months, occupied a residence for 6 months, and has a gross household income of less than $45,000.

Inheritance and Estate Taxes
There is no inheritance tax and no estate tax is due for deaths occurring in 2005 and thereafter.

For further information, visit the Montana Department of Revenue site or call 406-444-6900.
Note: The state has a statutory provision for automatic adjustment of tax brackets, personal exemptions or standard deductions to the rate of inflation.

NEBRASKA
Sales Taxes
State Sales Tax: 5.5% (food and prescription drugs exempt); local option taxes could add an additional 2.25% to the state rate.
Gasoline Tax: 28.0 cents/gallon
Diesel Fuel Tax: 27.4 cents/gallon
Cigarette Tax: 64 cents/pack of 20

Personal Income Taxes
Tax Rate Range: - 2.56%; High - 6.84%
Income Brackets: * Lowest - $2,400; Highest - $27,000
Number of Brackets: 4
Personal Tax Credits: Single - $106; Married - $212; Dependents - $106;
Standard Deduction: Single - $5,130, Married - $8,580
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: None
Retirement Income Taxes: Railroad Retirement benefits are exempt. Out-of-state government pensions are fully taxed. Social Security is taxable to the extent of federal taxation.
Retired Military Pay: Follows federal tax rules.
Military Disability Retired Pay: Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Property Taxes
The state has a homestead exemption that provides relief from property taxes by exempting all or a portion of the valuation of the homestead from taxation. There are three groups of exemptions: A) persons age 65, B) certain disabled individuals, and C) certain disabled veterans and their widow(er)s. Call 800-742-7474 or 402-471-5984 for details or click here.

Inheritance and Estate Taxes
Nebraska's inheritance tax is collected at the county level. The estate tax is limited and related to federal estate tax collection. The estate tax rate for the first $100,000 of a taxable estate was reduced retroactively in 2004 to 5.6 percent for decedents dying on or after July 1, 2003. A new bracket of 12 percent was created for taxable estates between $3.5 million and $4 million. The highest rate is now 16.8 percent for taxable estates of more than $9 million.

For further information, visit the Nebraska Department of Revenue site.
* The tax brackets reported are for a single individual. For married couples filing jointly, the same rates apply for income under $4,000 to over $50,000.

Note: The state has a statutory provision for automatic adjustment of tax brackets, personal exemptions or standard deductions to the rate of inflation.

NEVADA
Sales Taxes
State Sales Tax: 6.5% (food and prescription drugs exempt). Counties may add up to 1.25% additional. .
Gasoline Tax: 32.5 cents/gallon; county taxes may add another 5-10 cents.
Diesel Fuel Tax: 28.6 cents/gallon; county taxes may add another 5-10 cents.
Cigarette Tax: 80 cents/pack of 20

Personal Income Taxes
No state income tax
Retirement Income: Not taxed

Property Taxes
All property in the state is subject to tax by the state, counties, cities, towns, and school districts. Property taxes are applied to property of every kind and nature, including real and personal property. The assessed valuation for tax purposes is based on 35% of the fair market value of the property and is revalued every five years. Click here. The Senior Citizens Property Tax Assistance Act is administered by the Nevada Division of Aging Services. Homeowners 62 and older who earn $24,016 or less are eligible for a rebate of up to $500 or up to 90% of taxes paid. The program is also available to older taxpayers who, through rent payments, pay a disproportionate amount of their income on property taxes. Call 775-687-4892 for details.

Inheritance and Estate Taxes
There is no inheritance tax and a limited estate tax related to federal estate tax collection.

For further information, visit the Nevada Department of Taxation site.

NEW HAMPSHIRE
Sales Taxes
State Sales Tax: None. There is an 8% tax on lodging and restaurant meals and a 7% tax on two-way communications.
Gasoline Tax: 19.6 cents/gallon
Diesel Fuel Tax: 19.6 cents/gallon
Cigarette Tax: 80 cents/pack of 20

Personal Income Taxes
New Hampshire depends more upon real property taxes for revenue than most states since there are no general income, sales or use taxes. The state also receives substantial revenue from taxes on motor fuels, tobacco products, alcoholic beverages sold through the state liquor stores, and pari-mutuel betting. The state income tax is limited to a 5% tax on dividends and interest income of more than $2,400 ($4,800 for joint filers). A $1,200 exemption is available for residents who are 65 years of age or older.
Retirement Income: Not taxed.

Property Taxes
Local property taxes, based upon assessed valuation, are assessed, levied and collected by municipalities. To view the tax rates for each town, click here.

A state education property tax rate of $3.33 (2005) per $1,000 of total equalized valuation is assessed on all New Hampshire property owners. An elderly exemption for property taxes can be age, net income limits, including Social Security income, and net asset limits. Property taxes can be deferred but accrue interest at the rate of 5% per annum. The deferred property tax may not exceed more than 85% of the equity value of the residence. The deferral is available (if granted) by the assessing officials, to any resident property owner who is at least 65 years old. For single homeowners 65 and older who earn less than $5,000 and married couples who earn less than $6,000, $5,000 of their property's assessed value is exempt from taxes. In addition, the homeowner's other assets besides the home must be worth less than $35,000.

There is a Low & Moderate Income Homeowner's Property Tax Relief program in New Hampshire. Click here. You must own a homestead subject to the state education property tax; reside in such homestead as of April 1 of the year for which the claim for relief is made; have a total household income of (1) $20,000 or less if a single person or (2) $40,000 or less if married or head of a New Hampshire household.

Call 603-271-2687 for details on property taxes or click here for municipal tax rates.

Inheritance and Estate Taxes
New Hampshire's Legacy & Succession Tax was repealed in 2002 and is effective for deaths occurring on or after January 1, 2003. As a result there is no inheritance or estate tax.

For further information, visit the New Hampshire Department of Revenue Administration site or call 603-271-2191.

NEW JERSEY
Sales Taxes
State Sales Tax: 7% (food, prescription drugs and non-prescription
drugs, clothing, footwear exempt)
Gasoline Tax: 14.5 cents/gallon
Diesel Fuel Tax: 17.5 cents/gallon
Gasohol Tax: 14.5 cents/gallon
Cigarette Tax: $2.575/pack of 20

Personal Income Taxes
Tax Rate Range: Low - 1.4%; High - 8.97%
Income Brackets: * Lowest - $20,000; Highest - $500,000
Number of Brackets: 6
Personal Exemptions: Single - $1,000; Married - $2,000;
Dependents - $1,500
Additional Exemptions: Taxpayer or spouse 65 or older - $1,000
Standard Deduction: None
Medical/Dental Deduction: Limited to excess of 2% of gross income
Federal Income Tax Deduction: None
Retirement Income Taxes: Social Security and Railroad Retirement benefits, and benefits received as a result of permanent and total disability before age 65, are not taxable and should not be reported as pension income. However, if you retired before age 65 on a total and permanent disability pension , and you continue to receive pension payments after age 65, your disability pension is treated as ordinary pension income beginning the year you reach age 65.

The state provides several income exclusions to enable residents to reduce their taxable income. These exclusions can be used every year you qualify. Persons 62 or older may use the Pension Exclusion to exclude all or part of their taxable pensions, annuities, and IRA withdrawals provided their gross income for the entire year before subtracting any pension does not exceed $100,000. The maximum amount excluded depends on your filing status. If married and filing a joint return, you may exclude up to $20,000. If you file as single, head of household, or qualifying widow or widower, you may exclude up to $15,000. If you are married, filing a separate return, you may exclude up to $10,000. If you file a joint return, and both you and your spouse qualify for the Pension Exclusion, you may apply the exclusion to the total taxable pension amount on your return. However, if only one spouse is age 62 or older or disabled, then only the income of the spouse who is age 62 or older or disabled ay be excluded.
Retired Military Pay: Exempt from taxes.
Military Disability Retired Pay: Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Not subject to New Jersey gross income tax.

Property Taxes
Property taxation is local. To review rates by county, click here. Then click on Local Property Taxes. Also click on Property Tax Relief Programs in the left menu for details about the programs described below.

The FAIR Rebate Program (sometimes referred to as the Homestead Rebate Program) provides rebates for homeowners and tenants who occupied their principal residence in New Jersey on Oct 1, paid property taxes on that dwelling either directly or through rent, and whose gross income for the entire year does not exceed certain limits. Only New Jersey residents who were either homeowners or tenants on October 1, 2005, are eligible for a 2005 FAIR rebate. Homeowners and tenants file different applications according to their status.

The Property Tax Reimbursement Program reimburses eligible senior citizens and disabled persons for property tax increases. The amount of the reimbursement is the difference between the amount of property taxes that were due and paid in the "base year" (the first year that all the eligibility requirements were met) and the amount due and paid in the current year for which you are claiming the reimbursement, provided the amount paid in the current year was greater. You must meet all the eligibility requirements for the base year and for each succeeding year, up to and including the current year to qualify for the reimbursement.

A Property Tax Deduction/Credit is available to eligible homeowners and tenants who pay property taxes, either directly or through rent, on their principal residence in New Jersey. They are eligible for either a deduction or a refundable credit on their New Jersey resident income tax return. Homeowners and tenants may be eligible for a deduction or credit even if they are not eligible for a homestead rebate. Qualified residents may deduct 100% of their property taxes due and paid or $10,000, whichever is less. For tenants, 18% of rent paid during the year is considered property taxes paid. The minimum benefit is a refundable credit of $50. Those eligible must be 65 years of age or older or blind or disabled and are not required to file a return because their income is below the minimum filing threshold.

Inheritance and Estate Taxes
New Jersey imposes a transfer inheritance tax, at graduated rates ranging from 11% to 16%, on the transfer of real and personal property having a total value of $500 or more which passes from a decedent to a beneficiary. If a decedent's death occurs on or after July 1, 1988, property passing to a decedent's surviving spouse, surviving parents, grandparents, children, stepchildren or grandchildren is entirely exempt from the tax.

In addition to the inheritance tax, New Jersey imposes a separate estate tax. An estate may be subject to the New Jersey Estate Tax even though there is no New Jersey Inheritance Tax payable. For decedents with a date of death prior to January 1, 2002 the New Jersey Estate Tax was designed to absorb the maximum credit for state inheritance, estate, succession or legacy taxes allowable in the Federal estate tax proceeding. It did not increase the estate's total estate tax obligation. For decedents with a date of death on or after January 1, 2002 the New Jersey Estate Tax was decoupled from the Federal estate tax proceeding.

The New Jersey Estate tax is based upon the Federal Estate tax credit for state death taxes which was allowable under the provisions of the Internal Revenue Code in effect on December 31, 2001. The Federal Estate tax does not have a provision providing a deduction for property passing to a domestic partner.

Information pertaining to the estate and inheritance tax may be obtained by calling 609-292-5033 or 609-292-5035. A special section on information for seniors can be accessed by clicking here.

For further information, visit the New Jersey Department of Taxation site.
* The tax brackets reported are for a single individual. A separate schedule is provided for married households filing jointly which ranges from 1.4% under $20,000 to 8.97 for income over $500,000.

NEW MEXICO
Sales Taxes
Gross Receipts Tax: 5% (prescription drugs exempt); county and city taxes may add another 2.1875%. Certain food and medical expenses are exempt.
Gasoline Tax: 18.0 cents/gallon
Diesel Fuel Tax: 19.0 cents/gallon
Cigarette Tax: 91 cents/pack of 20

Personal Income Taxes
Tax Rate Range: - Low -1.7%; High - 5.3% (2006 and 2007).
Income Brackets: * Lowest - $5,500; Highest - $16,000
Number of Brackets: 4
Personal Exemptions: ** Single - $3,200; Married - $6,400;
Dependents - $3,200
Additional Exemptions: Taxpayer or spouse 65 or older - up to $8,000
Standard Deduction: Single - $4,750; Married filing jointly - $9,500
Medical/Dental Deduction: Credit of 3% of unreimbursed prescription drug expenses to maximum of $150 per individual or $300 per return
Federal Income Tax Deduction: None
Retirement Income Taxes: Taxpayers 65 and older may exempt up to $8,000 (single), $16,000 (joint) from any income source if their income is under $28,500 (individual filers) or $51,000 (married filing jointly).
Retired Military Pay: See above.
Military Disability Retired Pay: Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Property Taxes
All property, whether real or personal, is subject to state and local property taxes. Rates vary substantially and depend on property type and location. The statewide weighted average rates, i.e., total obligations/total net taxable value, are about $26.47 for residential property. Assessors usually determine market value by the sales-comparison approach which matches a property's value to that of similar properties. The valuation of a residence that did not change hands in the prior year may not increase by more than 3% annually. One-third of the property's market value is its taxable value. The taxable value may be further reduced by exemptions of $2,000 each of heads of house holds and $4,000 for veterans.

There is a property tax rebate for residents age 65 and older. Their modified gross income cannot exceed $18,000 for the tax year and they cannot have been claimed as a dependent on another taxpayer's return. Homeowners 65 and older who earn $18,000 ($25,000 in Sandoval County) or less are eligible for a credit of up to $250 (married filing jointly) or $125 for single taxpayers. Call 505-827-0870 for details.

To access the property tax page, click here. For more details on property taxes, click here.

Inheritance and Estate Taxes
There is no inheritance tax but an inheritance may be reflected in a taxpayer's modified gross income and taxed that way. The estate tax is related to federal estate tax collection.

For further information, visit the New Mexico Taxation and Revenue Department site. Information for new residents, click here.