![]() Individual income taxes are a major source of state government revenue, accounting for 36 percent of state tax collections. Subscribe to get insights from our trusted experts delivered straight to your inbox. Stay informed on the tax policies impacting you. Some states tie their standard deductions and personal exemptions to the federal tax code, while others set their own or offer none at all. Some states double their single-bracket widths for married filers to avoid a “ marriage penalty.” Some states index tax brackets, exemptions, and deductions for inflation many others do not. States’ approaches to income taxes vary in other details as well.Hawaii has 12 brackets, the most in the country. Conversely, 32 states and the District of Columbia levy graduated-rate income taxes, with the number of brackets varying widely by state. Of those states taxing wages, nine have single-rate tax structures, with one rate applying to all taxable income. ![]() Seven states levy no individual income tax at all. Forty-one tax wage and salary income, while New Hampshire exclusively taxes dividend and interest income and Washington taxes the capitals gains income of high earners. ![]() Forty-three states levy individual income taxes.Individual income taxes are a major source of state government revenue, accounting for 36 percent of state tax collections in fiscal year 2020, the latest year for which data are available.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |