State Income Taxes: Who is Affected
February 4, 2019 | Last Updated on: July 18, 2024
February 4, 2019 | Last Updated on: July 18, 2024
The United States of America has 50 states, plus the District of Columbia, all of which have certain state tax rules and regulations that are specific to them. The fact of the matter is, there are some states which are more expensive to live in than others, and the associated income tax clearly demonstrates this. On the other hand, you may be wondering exactly who is affected by these various taxes. The answer can be boiled down to everyone from individuals, corporations, the government, and society itself. Imagine that throughout the year, you were on the market for the acquisition of business. You finally learned how to apply for a small business loan, obtained it, and soon the month of April is at your doorstep – it’s time to file your taxes. Every single expense, both individual and business related, is affected during tax season. The following article will provide you with an overview of the different income taxes by state and who is affected as a result of them.
There are currently seven states that have eliminated income taxes altogether. These currently include:
These are the types of states that people will often not leave from, and the respective government officials want to keep their current residents to help the economy grow. Thus, the next time you are considering moving somewhere for a job opportunity, you could consider a place where you don’t have to pay a single income tax. Although this may sound too good to be true, it is a reality for the above seven states.
It should come as no surprise that individual states have higher and lower tax rates. Moreover, it is every single person’s responsibility to understand exactly what these are when it is tax season. To provide you with some perspective, the states with some of the highest state income tax include:
On the other hand, the lowest tax states include:
Knowing ahead of time what this rate is will ensure that you are fully prepared for what you will have to pay, and even what you can obtain as a tax return when the time comes.