Can someone explain state tax?

Question

I think I have now understood federal tax and how a, say, 25% tax bracket does not mean you pay 25% on every dollar earned. However what about state tax. If you are in the 25% federal bracket do you have to "add" another X% of state tax and pay X% an all your income?

Thanks!

Answer 1

Every state is different but most of them are similiar to federal and in fact use it as a starting point with a few adjustments.

Some states do not have a state income tax but rather get there monies from property tax. I believe Texas is this way.

Answer 2

Every state has different rules. Many states follow the same pattern as the feds, with brackets, exemptions and deductions. I live in PA - there are very few deductions, no exemptions, and a flat rate on taxable income although only certain types of income are taxed (pensions are not, for example). Some states have no state income tax at all.

You might find the info at the following link interesting - it's the rates for each state:
http://www.taxadmin.org/fta/rate/ind_inc.html

Answer 3

The IRS facilitates you to deduct the two the state income taxes you pay or the sales tax you pay in a given year as an itemized deduction. you need to use whichever is bigger, (that's why some human beings save all their receipts) or in the adventure that your state would not impose an income tax, you employ the sales tax quantity to your deduction.

Answer 4

oh, no...to have a tax system that can be understood would make life way to simple for us peons...and we cannot have that...tax codes must be complex complicated and impossible to understand, so those dweebs we made fun of in school can have their revenge...