State income taxes significantly impact your finances alongside federal taxes. Here's what you need to know about how they work across the United States.

Types of State Income Tax Systems

1. No Income Tax States

• Nine states don't collect income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming
• Washington has a 7% tax on long-term capital gains over $270,000 (2024)
• These states often compensate with higher property taxes, sales taxes, or other fees

2. Flat Tax States

• Several states apply one tax rate to most income
• What qualifies as "income" varies by state
• Some states use taxable income, others use adjusted gross income

3. Progressive Tax States

• Most states and D.C. use progressive tax brackets
• Higher income levels face higher tax rates
• Rates typically range from 1% to 10%
• First few thousand dollars of income often untaxed

Highest Tax States

• California (13.3% top rate)
• Hawaii (11% top rate)
• New York (10.9% top rate)
• New Jersey (10.75% top rate)
• District of Columbia (10.75% top rate)

Important Considerations

Filing Requirements:

• Generally file in state where you live and work
• Multiple state returns needed if you:
  • Moved between states
  • Live in one state but work in another
  • Own income-producing property in multiple states

Due Dates:

• Most state returns due same time as federal (mid-April)
• Some exceptions (e.g., Virginia - May 1)
• Check with your state's tax authority for specific deadlines

[Rest of content includes detailed state-by-state tax rate tables for 2024 and 2025, which should be formatted as tables in the final implementation]

State tax rates can change annually, so always verify current rates with your state's taxation department.

Note: Your actual tax burden depends on:

• Filing status
• Dependents
• Available deductions and credits
• State-specific rules and exemptions

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