State Income Tax

State Income Tax refers to a tax imposed by individual states on the income earned by residents and, in some cases, non-residents working within the state.

This tax is typically calculated as a percentage of taxable income and may vary significantly from one state to another.

States may employ different tax structures, such as flat rates—where a single tax rate applies to all income levels—or progressive rates—where the tax rate increases as income rises.

For example, a state with a progressive tax system might impose a 3% tax on income up to $50,000 and a 5% tax on income above that threshold.

State income tax revenues are often used to fund state programs, including education, healthcare, and infrastructure.