State Income Tax

State income tax is an income tax that is levied by each individual state. This tax is on top of the federal income tax. The following states do not impose any state income tax: Alaska, Nevada, Wyoming, Florida, Washington, Texas, and South Dakota. Other states only impose state income tax on dividends and interest income. However, the majority of states have a progressive income tax, where the rate is higher the more income the taxpayer generates.

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