Taxation By State

Ever wonder how your state compares to another tax wise?
Now you can check.

I think I find myself taxed higher than my Colorado friends.

Damn it!

I also include Alaska for comparison to a low tax state. But keep in mind it gets quite a lot of it's government revenue from oil taxation as well as having Ted Stevens representing them in the Senate.

See below for details.

Some quick comparisions.
Alaska
State Sales Tax: None; Local municipalities collect a sales tax that ranges between 1% and 6%.
Gasoline Tax: 8 cents/gallon
Diesel Fuel Tax: 8 cents/gallon
Gasohol Tax: None
Cigarette Tax: $1.60/pack of 20
No state income tax
Retirement Income: Not taxed.
Property taxes are assessed in 25 of 161 municipalities. Homeowners 65 and older (or surviving spouses 60 and older) are exempt from municipal taxes on the first $150,000 of the assessed value of their property. This also applies to disabled veterans. Intangible personal property is exempt from taxation.
There is no inheritance tax and the estate tax is limited to federal estate tax collection.

COLORADO
State Sales Tax: 2.9% (food and prescription drugs exempt); many cities and counties have their own rates which are added to the state rate. Total could be as high as 9.9%.
Gasoline Tax: 22 cents/gallon
Diesel Fuel Tax: 20.5 cents/gallon
Gasohol Tax: 22 cents/gallon
Cigarette Tax: 84 cents/pack of 20

Personal Income Taxes
All taxpayers: 4.63% of Federal taxable income
Personal Exemptions/Credits: Federal amounts are automatically adopted.
Standard Deduction: None
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: None
Retirement Income Taxes: Taxpayers 55-64 years old can exclude a total of $20,000 for Social Security and qualified retirement income. Those 65 and over can exclude up to $24,000. All out-of-state government pensions qualify for the pension exemption.
Retired Military Pay: Same as 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
The county assessor determines the value of property using a market, cost or income approach. Property taxes are assessed on a percentage of the property's actual value. You can determine your property tax bill by multiplying the assessed value by the local tax rate.

A homestead exemption for qualifying seniors and the surviving spouse of a senior who previously qualified is available. Seniors must be at least age 65. It allows 50% (up to a maximum reduction of $100,00) in actual value of a primary residence to be exempt. The state pays the tax on the exempted value. The person must have owned and lived in the home for at least 10 years. The senior property tax exemption was suspended for 2003-2005 and will be available again beginning in 2006. Call 303-866-2371 for details or visit http://www.dola.state.co.us/.

Inheritance and Estate Taxes
There is no inheritance tax and the Colorado estate tax is limited to federal estate tax collection.

PENNSYLVANIA
Sales Taxes
State Sales Tax: 6% (food; clothing, text books, heating fuels, prescription and non-prescription drugs exempt) Other taxing entities may add up to 1%.
Gasoline Tax: 32.2 cents/gallon
Diesel Fuel Tax: 34.0 cents/gallon
Gasohol Tax: 32.2 cents/gallon
Cigarette Tax: $1.35/pack of 20

Personal Income Taxes
Tax Rate Range: Flat rate of 3.07%
Personal Tax Exemptions: None
Standard Deduction: None
Medical/Dental Deduction: None
Federal Income Tax Deduction: None
Retirement Income Taxes: At 59½, Social Security, civil service, state/local government, and private pensions are exempt. IRAs are exempt as are out-of-state government pensions.
Retired Military Pay: Not taxed after age 59 1/2.
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 taxes are levied by local governments (counties, municipalities and school districts). The tax cannot exceed 30 mills on the assessed valuation of the property without special permission from the courts. Households with claimants or spouses 65 years of age or older, widows or widowers 50 years of age or older and the permanently disabled 18 years of age or older meeting income eligibility requirements may qualify for this program. Rebates of paid property tax or rent, up to a maximum of $500 per year, are available. To qualify, annual household eligibility income must not exceed $15,000. Act 30-1999 expanded the Property Tax/Rent Rebate program by excluding 50% of Social Security payments and 50% of Railroad Retirement benefit payments from eligibility income. Call 717-787-8201 for details. Counties may levy an intangible personal property tax, which taxes stocks, bonds and other personal property taxpayers may own. Not all counties levy this tax.

Inheritance and Estate Taxes
The Pennsylvania inheritance tax is calculated at a percentage of the value of the assets transferred which is determined by the relationship of the heir to the decedent and the decedent's date of death. The tax rate is 4.5% for transfers to direct descendants (lineal heirs), 12% for transfers to siblings, and 15% for transfers to other heirs (except charitable organizations, exempt institutions, and government entities). Property owned jointly between husband and wife is exempt from the tax, while property inherited from a spouse, or from a child 21 or younger by a parent is exempt. The estate tax is related to federal estate tax collection.

Education Posted by AlexC at February 6, 2006 5:05 PM