Living in Kentucky offers many tax advantages over Ohio. Below is a comparison of the two states. Most
notably is there is no inheritance tax on Class A beneficiaries (spouse, parent, lineal descendent,
sibling). Additionally there are many other advantages. Below is
a sampling of some of the advantages.
KENTUCKY
No inheritance tax on Class A beneficiaries (spouse, parent, lineal descendent, sibling)
State sales tax rate is 6%
State income tax rates range from 2% to 6%
State allows itemized deductions, including mortgage interest, real estate and property taxes, charitable deductions and gambling losses
Each retiree may exclude up to $41,110 in retirement income from State income tax
Bellevue has no income tax on residents' income earned outside the city
Gasoline tax of 22.5 cents per gallon as of July 1, 2008
Combined county and city real property tax rate in Bellevue is $12.845 per $1,000 value
OHIO
Estates over $338,333 are taxed for all beneficiaries
Sales tax rates vary by county. Hamilton County , Warren County and Clermont County sales tax rates are 6.5%. Butler County sales tax rate is 6.25%
State income tax rates range from .649% to 6.555%
State does not allow itemized deductions
No retirement income exclusion from State income tax is available
Most Ohio cities tax residents' income earned outside the city. For example, Cincinnati taxes such income at a rate of 2.1%. Residents of certain school districts are subject to an additional income tax
Gasoline tax of 28 cents per gallon
Real property tax rates vary by tax district. Average tax rate for Hamilton County, after reductions and credits, is $16.944 per $1,000 value
If you need further information or assistance, please contact Albert J. Ruscitto, CPA at H. K. Campbell & Company at (513) 721-0006 or albert.ruscitto@hkcampbell.com.
Information is as of December 31, 2007 except as indicated. These comments are intended as general information only. You should consult your tax advisor regarding the specifics of your situation. While every effort was made to provide valuable, useful information, H. K. Campbell & Company does not accept responsibility or any form of liability from reliance upon or use of this information.
