U.S. Legacy Income Trusts

State and Local Tax Treatment of Charitable Contributions

In addition to the federal income tax deduction for qualified gifts to charity available to individual taxpayers who itemize their deductions, a number of states and local jurisdictions that tax individual income also permit resident taxpayers to deduct or receive a tax credit for qualified gifts to charity.

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Please refer to the notes below for important disclosures. Potential Donors should consult their own tax advisors before contributing.

Residence State/Local Individual Income Tax? State/Local Charitable Tax Benefit? Maximum State/Local Charitable Tax Benefit
Alabama YES YES 3.15%
Alaska NO N/A 0.00%
Arizona YES YES 4.54%
Arkansas YES YES 6.90%
California YES YES 13.30%*
Colorado YES YES 4.63%
Connecticut YES NO 0.00%
Delaware YES YES 6.60%
District of Columbia YES YES 8.95%*
Florida NO N/A 0.00%
Georgia YES YES 5.75%
Hawaii YES YES 11.00%*
Idaho YES YES 6.93%
Illinois YES YES 0.00%
Indiana YES NO 0.00%
Iowa YES YES 5.37%*
Kansas YES YES 5.70%
Kentucky YES YES 5.00%
Louisiana YES YES 3.78%
Maine YES YES 7.15%*
Maryland YES YES 5.75%
Baltimore (City of) YES YES 8.95%
Baltimore County YES YES 8.58%
Montgomery Co. YES YES 8.95%
Prince George's Co. YES YES 8.95%
Massachusetts YES NO 0.00%
Michigan YES NO 0.00%
Minnesota YES YES 9.85%*
Mississippi YES YES 0.00%
Residence State/Local Individual Income Tax? State/Local Charitable Tax Benefit? Maximum State/Local Charitable Tax Benefit
Missouri YES YES 5.40%
Montana YES YES 6.90%
Nebraska YES YES 6.84%
Nevada NO N/A 0.00%
New Hampshire YES NO 0.00%
New Jersey YES NO 0.00%
New Mexico YES YES 4.90%
New York YES YES 6.49%*
New York City YES YES 10.37%*
Yonkers YES YES 7.58%*
North Carolina YES YES 5.25%
North Dakota YES YES 2.90%
Ohio YES NO 0.00%
Oklahoma YES YES 5.00%
Oregon YES YES 9.90%
Pennsylvania YES NO 0.00%
Rhode Island YES NO 0.00%
South Carolina YES YES 7.00%
South Dakota NO N/A 0.00%
Tennessee YES NO 0.00%
Texas NO N/A 0.00%
Utah YES YES 6.00%*
Vermont YES YES 5.00%*
Virginia YES YES 5.75%
Washington NO N/A 0.00%
West Virginia YES NO 0.00%
Wisconsin YES YES 5.00%
Wyoming NO N?A 0.00%


* Charitable tax benefit is reduced at higher contributor income levels or subject to a cap. See below for additional information.
Maximum state/local tax benefits indicated above are based on the treatment of qualified charitable contributions and tax rates in effect for 2019 as of March 2019. State and local income tax rates and the treatment of charitable contributions for state and local tax purposes are subject to change.

* In the following jurisdictions, the state and local tax benefits to individual resident taxpayers of charitable contributions are subject to additional limitations:


California: Otherwise allowable itemized deductions (IDs) are reduced by 6.0% of the taxpayer’s federal adjusted gross income (AGI) in excess of a threshold amount (in 2018, $194,504 for single filers, $389,013 for married filing jointly (MFJ) and $291,760 for head of household (HH)), up to a maximum reduction of 80%. For a taxpayer whose federal AGI exceeds the applicable threshold, IDs up to 7.5% of the taxpayer's federal AGI in excess of the threshold are subject to the 80% reduction; IDs above 7.5% of the taxpayer's federal AGI in excess of the threshold are not reduced.
District of Columbia: Otherwise allowable IDs are reduced by 5.0% of the taxpayer’s DC AGI in excess of a threshold amount (in 2018, $200,000 for all filers). For a taxpayer whose DC AGI exceeds the threshold, IDs are allowable to the extent greater than 5% of the taxpayer's DC AGI in excess of the threshold.
Hawaii: Otherwise allowable IDs are reduced by 3.0% of the taxpayer’s HI AGI in excess of a threshold amount (in 2018, $166,800 for all filers), up to a maximum reduction of 80%. For a taxpayer whose HI AGI exceeds the applicable threshold, IDs up to 3.75% of the taxpayer's HI AGI in excess of the threshold are subject to the 80% reduction; IDs above 3.75% of the taxpayer's HI AGI in excess of the threshold are not reduced.
Iowa: Otherwise allowable IDs are reduced by 3.0% of the taxpayer’s IA AGI in excess of a threshold amount (in 2018, $266,700 for single, $320,000 for MFJ and $293,350 for HH), up to a maximum reduction of 80%. For a taxpayer whose IA AGI exceeds the applicable threshold, IDs up to 3.75% of the taxpayer's IA AGI in excess of the threshold are subject to the 80% reduction; IDs above 3.75% of the taxpayer's IA AGI in excess of the threshold are not reduced.
Maine: Allowable IDS are limited to $29,050 and phase out proportionately as the taxpayer's ME AGI increases from a lower threshold (in 2018, $80,000 for single, $160,000 for MFJ and $120,000 for HH) to an upper threshold ($155,000 for single, $310,000 for MFJ and $232,500 for HH). Taxpayers whose ME AGI exceeds the upper threshold are not entitled to IDs.
Minnesota: Otherwise allowable IDs are reduced by 3.0% of the taxpayer’s MN AGI in excess of a threshold amount (in 2018, $190,050 for single, MFJ and HH), up to a maximum reduction of 80%. For a taxpayer whose MN AGI exceeds the applicable threshold, IDs up to 3.75% of the taxpayer's MN AGI in excess of the threshold are subject to the 80% reduction; IDs above 3.75% of the taxpayer's MN AGI in excess of the threshold are not reduced.
New York: Otherwise allowable IDs are reduced by 3.0% of the taxpayer’s federal AGI in excess of a threshold amount (in 2018, $266,700 for single, $320,000 for MFJ and $293,350 for HH), up to a maximum reduction of 80%. For resident taxpayers whose NY AGI exceeds a threshold amount (in 2018, $100,000 for single, $200,000 for MFJ and $150,000 for HH), IDs are separately reduced by 25% of the fraction of $50,000 by which the taxpayer’s NY AGI exceeds the NY AGI threshold (to a maximum additional ID disallowance of 25%) and then further reduced by 25% of the fraction of $50,000 by which the taxpayer’s NY AGI exceeds $475,000 (to a maximum additional ID disallowance of 50%). Resident taxpayers whose NY AGI exceeds $1,000,000 are subject to disallowance of all non-charitable IDs and 50% of otherwise allowable charitable IDs; resident taxpayers whose NY AGI exceeds $10,000,000 are subject to disallowance of all non-charitable IDs and 75% of otherwise allowable charitable IDs.
Utah: The 6.0% tax credit for the sum of a taxpayer's federal deductions (standard or itemized) and Utah personal exemptions is reduced by 1.3% of the taxpayer's Utah AGI in excess of a threshold amount (in 2018, $14,256 for single, $28,512 for MFJ and $21,384 for HH).
Vermont: The 5.0% tax credit for qualified gifts to charity is subject to an annual gift limit of $20,000 (maximum annual credit of $1,000).


Important Information and Disclosures

The Maximum State/Local Charitable Tax Benefit for each jurisdiction reflects the treatment of qualified charitable contributions and state and local income tax rates in effect for 2019 as of March 2019, rounded to the nearest hundredth of a percent. For the 28 states (and the District of Columbia) in which qualified charitable gifts are deductible for state tax purposes, the stated maximum charitable tax benefit generally equals the highest marginal tax rate applicable to individual resident taxpayers in each jurisdiction. The maximum charitable tax benefit indicated for AL, IA and LA is the highest marginal individual tax rate in those states, net of the deduction for federal taxes paid that is available there. The maximum charitable tax benefit indicated for local MD jurisdictions reflects the highest combined state and local individual tax rates in effect there; other MD counties apply local resident income taxes at rates up to 3.20%, the impact of which is not shown. The maximum charitable tax benefit indicated for NY and the two NY cities with local income taxes (New York City and Yonkers) reflects the highest combined state and local individual resident tax rates in those jurisdictions for which the NY limitations on charitable deductions summarized above do not apply. For the three states (UT, VT and WI) that provide a tax credit for qualified charitable gifts, the stated maximum charitable tax benefit equals the tax credit percentage. This analysis ignores the surtax of up to 20% of residents’ IA state income taxes applicable in certain local IA jurisdictions, the alternative minimum tax imposed by certain states (CA, CO, CT, IA and MN) and the limited deduction for federal income taxes paid that is available in certain states (MO, MT and OR), which may affect the value of state charitable tax deductions. Numerous states limit the availability of charitable and other allowable itemized deductions to resident taxpayers who itemize their federal income tax deductions; other states permit resident taxpayers to itemize state income tax deductions or otherwise deduct qualified charitable gifts even if they do not itemize federal deductions.

The itemized federal income tax deduction available to individual taxpayers in the tax year of contribution for qualified charitable gifts to public charities is generally limited to not more than 60% of the taxpayer’s federal adjusted gross income (AGI) for cash contributions, 50% of the donor’s AGI for gifts of appreciated property for which the Donor elects to base the charitable deduction on the fair market value of the property less the amount of the property’s appreciation from cost or other tax basis, and 30% of the donor’s AGI for other gifts of appreciated property, with the balance carried forward for up to five years after the year the contribution is made. State and local jurisdictions providing deductions or credits for qualified charitable gifts to public charities generally follow the federal limitations. Certain states and local jurisdictions (AR, AZ, CA, MN and NY) currently apply a 50% of AGI limit, instead of the 60% federal limit, on permissible charitable deductions in the year of contribution for cash gifts. See “Tax Considerations – Charitable Income Tax Deductions” in the Trusts’ Information Statements for additional information.

State and local income tax rates and the treatment of charitable contributions for state and local tax purposes are subject to change. This table is provided for educational purposes only and is not intended to provide, and should not be construed as providing, legal or tax advice. The output is general in nature and is not intended to serve as the primary or sole basis for investment or tax-planning decisions. Each prospective Donor to a Trust should consult his or her own tax advisors with respect to the federal, state, local, and non-U.S. tax implications of a contribution to a Trust.