state income tax

State income tax is a tax that state governments impose on the income earned by individuals and businesses within their jurisdiction. The tax is calculated based on a percentage of taxable income, which is the income after deductions and exemptions. Each state has its own rules regarding rates and what is considered taxable. These taxes fund vital public services like education, infrastructure, and public safety. Not all states impose income tax; some rely on sales tax and other forms of revenue. Taxpayers typically file returns annually to report their income and pay any owed taxes.