What are state taxes?
In addition to federal taxes, each state has its own tax rules and rates. Your state taxes will depend on where you live or where you earn income.
Not all states with income tax have the same rules or rates. For example, some states have a flat tax rate, while others have a progressive tax rate that increases as your income increases. Some states also offer tax credits or deductions that can affect the amount of tax you owe.
Research the specific income tax rules and rates in the state where you live or earn income in order to determine how much tax you will owe. You may want to speak with a tax professional or use online tax tools and calculators to help you with this.
Do I have to pay income tax in my state?
Probably. The following 14 states do not have an individual income tax. However, these states generally have higher property tax and sales tax than others, so there are tradeoffs to consider.
- South Dakota