State Tax

In the united states, 43 states and the District of Columbia impose tax on individual income. New Hampshire and Tennessee tax only unearned income such as interest and dividends. You can learn more about state taxes by browsing through the state tax profiles of all states in the united states. The state profile consists of the tax basis, tax rate and bracket used in the state, adjustments allowed while computing the state taxable income and special taxes any imposed by the state.

State Income Tax

Income Tax Basis
Most of the states with an income tax uses federal adjusted gross income or federal taxable income as the starting point to determine the state tax.
Additions to Tax basis
Your state may have one or more additions to the tax basis while calculating the state taxable income. Check your state tax profile for details.
Subtraction from Tax basis Your state may allow more deductions than allowed in the federal tax return. Check your state tax profile for details.
State Tax Rate and Brackets
Every state have different tax rate for different incomes levels and income brackets. You can find the details in the state tax profiles.
Capital Gain Tax
The state capital gain tax rate could be different from that of the federal tax rate. You can find the capital gain tax in your state in the state tax profile.
Interest/Dividends Income Tax
The state tax treatment for the interest and dividends income vary from state to state. Two states New Hampshire and Tennessee tax only interest and dividends income. Your state may have extra deduction for the some dividends or may not allow altogether or may have differ net rates for dividends. Check the state tax profile for details.
State Unemployment Tax
The state may or may not tax Unemployment income.
Active Duty/combat zone Military Pay
The state may or may not tax Active Duty/combat zone Military Pay.
Social Security Tax
Some states impose tax on Social Security
Pension/Retirement Income
The tax treatment of the Pension/Retirement Income differ from state to state and some states exempt the pension income while others provide partial tax benefits.
Retired Military Pay
The tax treatment of the Retired Military Pay differ from state to state and some states exempt the Retired Military Pay while others provide partial tax benefits.
Other State Taxes
States may impose additional tax like use taxes.

Filing State Income Tax Return

State Tax Filing Requirements
Most of the states with income tax require their residents and non-residents to file tax return if they satisfy the filing requirements.
Free State Tax Filing by Volunteers (VITA)
The following organizations offer free Tax Preparation and E-Filing service.
- AARP - American Association for Retired Persons
- VITA - Volunteer Income Tax Assistance
Free Online Tax Preparation and e-filing
Many states provide free e-filing of the tax return directly through their website. If your state provide free tax filing, you will find the link to their website in the state tax profile.

State Tax Deductions

Standard Deduction
Most of the states allow a standard deduction from the tax basis to calculate the state taxable income. The standard deduction depend on the filing states and may phase out higher income levels. Some states provide tax credits instead of the standard deduction.
Itemized deductions
Most of the states use the federal guidelines in allowing the itemized deductions. Some states does not allow itemized deductions altogether or may have different rules to qualify the deductible items like medical and dental expenses.
Personal Exemption
The state personal exemption amount vary from state and most of the states it depends on the filing status of the taxpayer.
Federal Tax deduction
Some states allow full or partial deduction of the federal income taxes to avoid double taxation.
Other State Tax deductions
Your state may provide additional special tax deductions. Check your state tax profile for details.