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Encyclopedia > State income tax
States with no state income tax are in red, states taxing only dividend and interest income are in yellow
States with no state income tax are in red, states taxing only dividend and interest income are in yellow
Taxation in the United States

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Politics and government of
the United States
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Federal taxation
History
Internal Revenue Service
Court  ·   Forms  ·   Code
Income tax  ·   Payroll tax
Alternative Minimum Tax
Estate tax  ·   Excise tax
Gift tax  ·   Corporate tax
Capital gains tax
State & local taxation
State income tax
Sales tax  ·   Use tax
Property tax
State tax levels
Federal tax reform
FairTax  ·   Flat tax
Tax protester arguments
Constitutional
Statutory  ·   Conspiracy

Part of the Taxation series
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State income tax is an income tax in the United States that is levied by each individual state. Some states choose to impose no income tax. These states are Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. Additionally, New Hampshire and Tennessee limit their state income taxes to dividends and interest income only. As of 2006, the highest rate of state income tax is that of Vermont, with a maximum rate of 9.5%. Of those states which impose an income tax, the lowest maximum rate is that of Illinois, which levies a flat tax of 3%. Most states have a progressive income tax, where the rate rises as an income gets larger. In California, for instance, the rate begins at 1% at $6,000 in income and rises to 9.3% over $39,000. In 2005, California added a mental health tax of 1% on incomes greater than $1,000,000, making the marginal income tax rate in California 10.3% at the extreme income ranges. Taxation in the United States is a complex system which may involve payment to at least four different levels of government. ... Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        The history of taxation in the United States began when it was composed of colonies ruled by the British Empire, French Empire, and Spanish Empire. ... Seal of the Internal Revenue Service Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        “IRS” redirects here. ... Seal of the United States Tax Court. ... Seal of the Internal Revenue Service Tax forms in the United States are used by taxpayers and tax-exempt organizations to report financial information to the Internal Revenue Service (IRS). ... The Internal Revenue Code (or IRC) (more formally, the Internal Revenue Code of 1986, as amended) is the main body of domestic statutory tax law of the United States organized topically, including laws covering the income tax (see Income tax in the United States), payroll taxes, gift taxes, estate taxes... Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        The federal government of the United States imposes a progressive tax on the taxable income of individuals, corporations, trusts, decedents estates, and certain bankruptcy estates. ... The Federal Insurance Contributions Act (FICA) tax, a kind of payroll tax, is a United States employment tax imposed in an equal amount on employees and employers to fund federal programs for retirees, the disabled, and children of deceased workers. ...        Alternative Minimum Tax (AMT) is a tax system that is part of the federal income tax system in the United States. ...        The estate tax in the United States is a tax imposed on the transfer of the taxable estate of a deceased person, whether such property is transferred via a will or according to the state laws of intestacy. ...        Look up Excise tax in the United States in Wiktionary, the free dictionary. ... Inheritance tax, also known in some countries outside the United States as a death duty and referred to as an estate tax within the U.S, is a form of tax levied upon the bequest that a person may make in their will to a living person or organisation. ...        Corporate tax in the United States is a tax on the taxable income of a C corporation or an entity taxed as a C corporation. ... Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        In the United States, individuals and corporations pay income tax on the net total of all their capital gains just as they do on other sorts of income, but the tax rate for individuals is... Taxation in the United States is a complex system which may involve payment to at least four different levels of government. ... Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        A sales tax is a tax on consumption and is normally a certain percentage that is added onto the price of goods or services that are purchased. ... Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        A use tax is a type of excise tax levied in the United States. ... Property tax, millage tax is an ad valorem tax that an owner of real estate or other property pays on the value of the property being taxed. ... State tax levels indicate both the tax burden and the services a state can afford to provide residents. ... Tax reform is the process of changing the way taxes are collected or managed by the government. ... Throughout this article, the unqualified term dollar and the $ symbol refer to the United States dollar. ... A flat tax, also called a proportional tax, is a system that taxes all entities in a class (typically either citizens or corporations) at the same rate (as a proportion on income), as opposed to a graduated, or progressive, scheme. ... Tax protester arguments are a number of theories that deny that a person has a legal obligation to pay a tax for which the government has determined that person is liable. ... Tax protesters in the United States make a number of statutory arguments that the assessment of the income tax in the United States violates the statutes enacted by the United States Congress and signed into law by the President. ... Tax protester conspiracy arguments are arguments raised by tax protesters that assert that the imposition of the income tax in the United States is the result of some kind of illicit conspiracy. ... Image File history File links This is a lossless scalable vector image. ... Image File history File links Flag_of_the_British_Virgin_Islands. ... Image File history File links This is a lossless scalable vector image. ... Image File history File links This is a lossless scalable vector image. ... Image File history File links Flag_of_Germany. ... Image File history File links Flag_of_Hong_Kong. ... Image File history File links Flag_of_India. ... Image File history File links Flag_of_Indonesia. ... Image File history File links Flag_of_the_Netherlands. ... Image File history File links Flag_of_New_Zealand. ... Image File history File links Flag_of_Peru. ... Image File history File links Flag_of_Ireland. ... Image File history File links Flag_of_Russia. ... Image File history File links Flag_of_Singapore. ... Image File history File links Flag_of_Tanzania. ... Image File history File links Flag_of_the_United_Kingdom. ... Image File history File links This is a lossless scalable vector image. ... Image File history File links This is a lossless scalable vector image. ... Comparison of tax rates around the world is a difficult and somewhat subjective enterprise. ... This table lists OECD countries by total tax revenue as percentage of GDP (as of 2005). ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        An income tax is a tax levied on the financial income... A U.S. state is any one of the 50 states which have membership of the federation known as the United States of America (USA or U.S.). The separate state governments and the U.S. federal government share sovereignty. ... Official language(s) None[1] Spoken language(s) English 85. ... Official language(s) English Capital Tallahassee Largest city Jacksonville Largest metro area Miami metropolitan area Area  Ranked 22nd  - Total 65,795[1] sq mi (170,304[1] km²)  - Width 361 miles (582 km)  - Length 447 miles (721 km)  - % water 17. ... This article is about the U.S. State of Nevada. ... Official language(s) English Capital Pierre Largest city Sioux Falls Area  Ranked 17th  - Total 77,116[1] sq mi (199,905 km²)  - Width 210 miles (340 km)  - Length 380 miles (610 km)  - % water 1. ... Official language(s) No official language See languages of Texas Capital Austin Largest city Houston Largest metro area Dallas–Fort Worth–Arlington Area  Ranked 2nd  - Total 261,797 sq mi (678,051 km²)  - Width 773 miles (1,244 km)  - Length 790 miles (1,270 km)  - % water 2. ... For the capital city of the United States, see Washington, D.C.. For other uses, see Washington (disambiguation). ... Official language(s) English Capital Cheyenne Largest city Cheyenne Area  Ranked 10th  - Total 97,818 sq mi (253,348 km²)  - Width 280 miles (450 km)  - Length 360 miles (580 km)  - % water 0. ... Official language(s) English Capital Concord Largest city Manchester Area  Ranked 46th  - Total 9,350 sq mi (24,217 km²)  - Width 68 miles (110 km)  - Length 190 miles (305 km)  - % water 4. ... Official language(s) English Capital Nashville Largest city Memphis Largest metro area Nashville Metropolitan Area Area  Ranked 36th  - Total 42,169 sq mi (109,247 km²)  - Width 120 miles (195 km)  - Length 440 miles (710 km)  - % water 2. ... A dividend is the distribution of profits to a companys shareholders. ... For other senses of this word, see interest (disambiguation). ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... This article is about the U.S. state. ... Official language(s) English[1] Capital Springfield Largest city Chicago Largest metro area Chicago Metropolitan Area Area  Ranked 25th  - Total 57,918 sq mi (149,998 km²)  - Width 210 miles (340 km)  - Length 390 miles (629 km)  - % water 4. ... A flat tax, also called a proportional tax, is a system that taxes all entities in a class (typically either citizens or corporations) at the same rate (as a proportion on income), as opposed to a graduated, or progressive, scheme. ... A progressive tax, or graduated tax, is a tax that is larger as a percentage of income for those with larger incomes. ... Official language(s) English Capital Sacramento Largest city Los Angeles Largest metro area Greater Los Angeles Area  Ranked 3rd  - Total 158,302 sq mi (410,000 km²)  - Width 250 miles (400 km)  - Length 770 miles (1,240 km)  - % water 4. ... Official language(s) English Capital Sacramento Largest city Los Angeles Largest metro area Greater Los Angeles Area  Ranked 3rd  - Total 158,302 sq mi (410,000 km²)  - Width 250 miles (400 km)  - Length 770 miles (1,240 km)  - % water 4. ... Official language(s) English Capital Sacramento Largest city Los Angeles Largest metro area Greater Los Angeles Area  Ranked 3rd  - Total 158,302 sq mi (410,000 km²)  - Width 250 miles (400 km)  - Length 770 miles (1,240 km)  - % water 4. ...


State income taxes are on top of the federal income tax, which currently tops out at 35%. Therefore, the maximum total rate is 35% of income in the states of Florida, Texas, and Washington, but 44.5% of income in Vermont and 44.3% in California.[1] However, these figures do not reflect the fact that some state and local taxes (including state income taxes) are deductible for federal tax purposes. Due to Alternative Minimum Tax, or AMT, itemization may not yield much, if any, tax savings on the federal return. For those not affected by AMT, the federal government effectively subsidizes a portion of an individual's state income tax, but only for individuals whose total deductions are greater than the standard deduction, which means the subsidy falls almost entirely to middle class payers. Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        An income tax is a tax levied on the financial income... Official language(s) English Capital Tallahassee Largest city Jacksonville Largest metro area Miami metropolitan area Area  Ranked 22nd  - Total 65,795[1] sq mi (170,304[1] km²)  - Width 361 miles (582 km)  - Length 447 miles (721 km)  - % water 17. ... Official language(s) No official language See languages of Texas Capital Austin Largest city Houston Largest metro area Dallas–Fort Worth–Arlington Area  Ranked 2nd  - Total 261,797 sq mi (678,051 km²)  - Width 773 miles (1,244 km)  - Length 790 miles (1,270 km)  - % water 2. ... For the capital city of the United States, see Washington, D.C.. For other uses, see Washington (disambiguation). ... This article is about the U.S. state. ... Official language(s) English Capital Sacramento Largest city Los Angeles Largest metro area Greater Los Angeles Area  Ranked 3rd  - Total 158,302 sq mi (410,000 km²)  - Width 250 miles (400 km)  - Length 770 miles (1,240 km)  - % water 4. ... Individual taxpayers in the United States are faced with a choice when preparing their tax returns. ...        Alternative Minimum Tax (AMT) is a tax system that is part of the federal income tax system in the United States. ... In economics, a subsidy is generally a monetary grant given by a government to lower the price faced by producers or consumers of a good, generally because it is considered to be in the public interest. ... Individual taxpayers in the United States are faced with a choice when preparing their tax returns. ...


In addition, some states allow cities and/or counties to impose income taxes above and beyond the federal and state income taxes. An example is New York City, where there is both a state income tax of up to 6.85%"[2] and a city income tax, up to 3.658%[3]. The maximum rate in the city limits of New York City (as of 2006) is therefore 45.508% (approximately one-half of marginal income), or 1.30 times the 35.0% rate (approximately one-third of marginal income) inside "federal income tax only" cities such as Seattle, Houston, Dallas, and Miami. New York, New York and NYC redirect here. ... New York, New York and NYC redirect here. ... 2006 is a common year starting on Sunday of the Gregorian calendar. ... City nickname Emerald City City bird Great Blue Heron City flower Dahlia City mottos The City of Flowers The City of Goodwill City song Seattle, the Peerless City Mayor Greg Nickels County King County Area   - Total   - Land   - Water   - % water 369. ... Houston redirects here. ... Dallas redirects here. ... This article is about the city in Florida. ...

Contents

U.S. States without a personal income tax

For more details on this topic, see Sales taxes in the United States.
  • Alaska – no tax on individuals but there is a state corporate income tax
  • Florida – no tax on individuals but there is a state corporate income tax. Once had tax on "intangible personal property" held on the first day of the year (stocks, bonds, mutual funds, money market funds, etc.) but was abolished at the start of 2007. The Florida Constitution explicitly prohibits a personal income tax.
  • Nevada
  • New Hampshire – does have tax on interest and dividends
  • South Dakota
  • Tennessee – does have tax on income received from stocks and bonds not taxed ad valorem (Tenn Const Art II, §28). The Tennessee Supreme Court has held that a personal income tax is unconstitutional.
  • Texas – in May 2006, passed a gross receipts tax on businesses. The Texas Constitution places severe restrictions on passage of a personal income tax and use of its proceeds.
  • Washington – has a corporate tax called the "Business and Occupation Tax (B&O)"[4]
  • Wyoming

Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        A sales tax is a tax on consumption and is normally a certain percentage that is added onto the price of goods or services that are purchased. ... Official language(s) None[1] Spoken language(s) English 85. ... Official language(s) English Capital Tallahassee Largest city Jacksonville Largest metro area Miami metropolitan area Area  Ranked 22nd  - Total 65,795[1] sq mi (170,304[1] km²)  - Width 361 miles (582 km)  - Length 447 miles (721 km)  - % water 17. ... The Great Seal of the State of Florida The Florida Constitution is the document that establishes and describes the duties, powers, structure and function of the government of the U.S. state of Florida, and establishes the basic law of the state. ... This article is about the U.S. State of Nevada. ... Official language(s) English Capital Concord Largest city Manchester Area  Ranked 46th  - Total 9,350 sq mi (24,217 km²)  - Width 68 miles (110 km)  - Length 190 miles (305 km)  - % water 4. ... Official language(s) English Capital Pierre Largest city Sioux Falls Area  Ranked 17th  - Total 77,116[1] sq mi (199,905 km²)  - Width 210 miles (340 km)  - Length 380 miles (610 km)  - % water 1. ... Official language(s) English Capital Nashville Largest city Memphis Largest metro area Nashville Metropolitan Area Area  Ranked 36th  - Total 42,169 sq mi (109,247 km²)  - Width 120 miles (195 km)  - Length 440 miles (710 km)  - % water 2. ... The Tennessee Supreme Court is the highest appellate court of the State of Tennessee. ... Official language(s) No official language See languages of Texas Capital Austin Largest city Houston Largest metro area Dallas–Fort Worth–Arlington Area  Ranked 2nd  - Total 261,797 sq mi (678,051 km²)  - Width 773 miles (1,244 km)  - Length 790 miles (1,270 km)  - % water 2. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... The Texas Constitution is the document that describes the structure and function of the government of Texas. ... For the capital city of the United States, see Washington, D.C.. For other uses, see Washington (disambiguation). ... Official language(s) English Capital Cheyenne Largest city Cheyenne Area  Ranked 10th  - Total 97,818 sq mi (253,348 km²)  - Width 280 miles (450 km)  - Length 360 miles (580 km)  - % water 0. ...

See also

Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        The federal government of the United States imposes a progressive tax on the taxable income of individuals, corporations, trusts, decedents estates, and certain bankruptcy estates. ... Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        A sales tax is a tax on consumption and is normally a certain percentage that is added onto the price of goods or services that are purchased. ... State tax levels indicate both the tax burden and the services a state can afford to provide residents. ... Taxation in the United States is a complex system which may involve payment to at least four different levels of government. ... Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        US State Nonresident withholding Tax is a tax of individuals or entities that do not live within the state. ...

Notes

  1. ^ State income tax rates, Tax Admin, January 1, 2006
  2. ^ 2006 Tax Computation New York AGI of more than $100,000, New York State Department of Taxation and Finance
  3. ^ 2006 New York City tax rate schedule, New York State Department of Taxation and Finance
  4. ^ Business and Occupation, Washington State Department of Revenue

External links


  Results from FactBites:
 
EOI Tax Policy - Washington State Income Tax? (1640 words)
Many states levy income taxes on federal adjusted gross income (AGI), but there are some concerns whether utilizing federal AGI as a tax base would be constitutional under Washington state’s uniformity clause [8].
A graduated rate income tax would be the best way to deal with the regressivity problem, especially when combined with a reduction in the sales tax, but it would almost certainly require a constitutional amendment.
Property taxes are considered slightly regressive in Washington, thus implementing an income tax in combination with a reduction in property taxes could help the regressivity problem.
State Income Tax - AskTheBrain.com (406 words)
Tax Exemptions Nonprofit corporations may be eligible for state and federal tax exemptions from payment of corporate income taxes and for other tax exemptions and benefits.
Most states also have an income tax - but it is low and serves mainly to complicate matters as it is often not calculated on the same basis as your federal tax.
Interest in a state income tax was spurred at this time as a way to evenly disperse the burden of taxes among all residents.
  More results at FactBites »

 
 

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