state and local taxes

State and local taxes are fees collected by state and municipal governments to fund public services and infrastructure, such as schools, roads, police, and fire services. These taxes can take various forms, including income taxes (a percentage of what you earn), sales taxes (a percentage added to purchases), and property taxes (based on the value of real estate). Each state and locality sets its own tax rates and regulations, which can vary widely. Understanding these taxes helps residents grasp how public services are financed and their overall impact on personal finances and local communities.