Welcome to Taxes Guide
Taxes Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
You may also listen to this article by using the following controls.
State Taxes at a Glance
from: ENTER AUTHOR NAMEState taxes are enforced contributions levied upon individuals by their state of residence. Except for Alaska, Washington, Nevada, Wyoming, South Dakota, Texas and Florida, every state in the union imposes a state tax in the form of a percentage to a resident's income. These percentage rates can vary from the highest at 9.5% for Vermont residents to a low of 3% for residents of Illinois. States such as Tennessee and New Hampshire only allow a state tax on interest and dividend income. State taxes are collected annually and are combined with other forms of direct and indirect tax contributions to pay for state facilities, programs and services.
The majority of states apply a tax rate to incomes on a progressive scale. The larger a resident's income, the more tax they will pay. While a lack of state taxes can sound promising, those not enforcing this type of tax generally obtain their revenues elsewhere, often through sales or excise taxes. Purchasing goods or cigarettes and alcohol tend to be higher in states such as Washington than they are in North Carolina. There is much debate as to the benefits of this type of taxation as it can be a plus or minus for both individuals and businesses. States such as Nevada obtain proceeds by means of their renowned gambling industry.
When and where warranted, state taxes are filed annually with federal taxes. Because tax laws vary from state to state, each will have their own type of tax forms. Like federal returns, taxpayers can opt for a long form or a short form. Individuals and businesses with more complex tax returns usually rely on the services of a professional tax preparer. This is especially true when businesses or individuals divide their time or make income in multiple states. While these forms are widely available in places such as post offices and libraries, now more than ever taxpayers file their federal and state taxes online.
Unless one applies for an extension, state taxes are filed every year by a certain date in the month of April. While it can vary from state to state, individuals in the military or those who fall under certain income guidelines are the only ones who may not be required to file. It is best to always obtain the advice of a tax professional when questions about federal or state taxes arise. The penalties with accruals that come with failure to file or file correctly based on deceptive or frivolous intent can make for a most uncomfortable situation. In worst case scenarios and offenses, individuals can face imprisonment.
Related Articles for Taxes
Taxes Specific Links
Taxes News
Tax-relief commission calls for school consolidation, other measures - Newsday
 WKTV | Tax-relief commission calls for school consolidation, other measures Newsday, NY - BY JOHN HILDEBRAND | john.hildebrand@newsday.com Declaring that the state's fiscal crisis demands tough decisions, a state tax-relief commission called ... Tax cap plans completed New York commission calls for property tax cap Paterson backs property-tax relief report |
Lawmakers announce hearings on tolls, taxes, aiding Turnpike - Boston Globe
 NECN | Lawmakers announce hearings on tolls, taxes, aiding Turnpike Boston Globe, United States - By Noah Bierman House and Senate leaders yesterday announced a series of public hearings on tolls, taxes, and other methods of raising money for the state's ... Newsnight: Tolls, gas tax hike ahead in Mass.? |
Amid budget crisis, Wis. cuts Social Security tax - BusinessWeek
Amid budget crisis, Wis. cuts Social Security tax BusinessWeek - By RYAN J. FOLEY Despite the worst budget deficit in Wisconsin history, many middle-class and wealthy senior citizens are on track to get tax breaks worth ... |
The IRA - tax benefit or tax nightmare? - Boston Globe
The IRA - tax benefit or tax nightmare? Boston Globe, United States - While the IRA has helped millions of Americans in their retirement years, many do not appreciate the tax nightmare that can await the beneficiaries of these ... Retirement distribution rule changes proposed |
Raise gas taxes - Salt Lake Tribune
Raise gas taxes Salt Lake Tribune, United States - While temporarily basking in the pleasures of low gasoline prices, we should aggressively raise federal and state gasoline taxes so that the pump price ... |