State income tax Wikipedia. Most individual U. S. states collect a state income tax in addition to federal income tax. The two are separate entities. Wholesale Stated Income Programs' title='Wholesale Stated Income Programs' />Stated income loans allow borrowers to simply state their monthly income on a mortgage application instead of verifying the actual amount by furnishing pay. Solar Panel Kits For Sale Wholesale Solar Power Plant System Flow Solar Panel Kits For Sale Wholesale Solar Panel Build Solar Power Plant Near Las Vegas. Charter will launch a lowincome broadband offering throughout its footprint after its merger with Time Warner Cable and Bright House Networks is completed. Some local governments also impose an income tax, often based on state income tax calculations. Forty three states and many localities in the United States may impose an income tax on individuals. Forty seven states and many localities impose a tax on the income of corporations. State income tax is imposed at a fixed or graduated rate on taxable income of individuals, corporations, and certain estates and trusts. The rates vary by state. Taxable income conforms closely to federal taxable income in most states, with limited modifications. The states are prohibited from taxing income from federal bonds or other obligations. Most do not tax Social Security benefits or interest income from obligations of that state. Several states require different useful lives and methods be used by businesses in computing the deduction for depreciation. Many states allow a standard deduction or some form of itemized deductions. States allow a variety of tax credits in computing tax. Each state administers its own tax system. Many states also administer the tax return and collection process for localities within the state that impose income tax. State income tax is allowed as a deduction in computing federal income tax, subject to limitations for individuals. Scraping By On 500,000 A Year Why Its So Hard For High Income Earners To Escape The Rat Race. Posted by Financial Samurai 553 Comments. Basic principleseditState tax rules vary widely. The tax rate may be fixed for all income levels and taxpayers of a certain type, or it may be graduated. Tax rates may differ for individuals and corporations. Wholesale Stated Income Programs' title='Wholesale Stated Income Programs' />Most states conform to federal rules for determining gross income,timing of recognition of income and deductions,most aspects of business deductions,characterization of business entities as either corporations, partnerships, or disregarded. Gross income generally includes all income earned or received from whatever source, with exceptions. The states are prohibited from taxing income from federal bonds or other obligations. Most states also exempt income from bonds issued by that state or localities within the state, as well as some portion or all of Social Security benefits. Many states provide tax exemption for certain other types of income, which varies widely by state. The states imposing an income tax uniformly allow reduction of gross income for cost of goods sold, though the computation of this amount may be subject to some modifications. Most states provide for modification of both business and non business deductions. El Camino Real Alfred Reed Pdf Free. Wholesale Stated Income Programs' title='Wholesale Stated Income Programs' />All states taxing business income allow deduction for most business expenses. Many require that depreciation deductions be computed in manners different from at least some of those permitted for federal income tax purposes. For example, many states do not allow the additional first year depreciation deduction. Most states tax capital gain and dividend income in the same manner as other investment income. In this respect, individuals and corporations not resident in the state generally are not required to pay any income tax to that state with respect to such income. Some states have alternative measures of tax. These include analogs to the federal Alternative Minimum Tax in 1. Income tax is self assessed, and individual and corporate taxpayers in all states imposing an income tax must file tax returns in each year their income exceeds certain amounts determined by each state. Returns are also required by partnerships doing business in the state. Many states require that a copy of the federal income tax return be attached to at least some types of state income tax returns. The time for filing returns varies by state and type of return, but for individuals in many states is the same typically April 1. Every state, including those with no income tax, has a state taxing authority with power to examine audit and adjust returns filed with it. Most tax authorities have appeals procedures for audits, and all states permit taxpayers to go to court in disputes with the tax authorities. Procedures and deadlines vary widely by state. All states have a statute of limitations prohibiting the state from adjusting taxes beyond a certain period following filing returns. All states have tax collection mechanisms. States with an income tax require employers to withhold state income tax on wages earned within the state. Some states have other withholding mechanisms, particularly with respect to partnerships. Most states require taxpayers to make quarterly payments of tax not expected to be satisfied by withholding tax. All states impose penalties for failing to file required tax returns andor pay tax when due. In addition, all states impose interest charges on late payments of tax, and generally also on additional taxes due upon adjustment by the taxing authority. Individual income taxeditForty three states impose a tax on the income of individuals, sometimes referred to as personal income tax. State income tax rates vary widely from state to state. The states imposing an income tax on individuals tax all taxable income as defined in the state of residents. Such residents are allowed a credit for taxes paid to other states. Most states tax income of nonresidents earned within the state. Such income includes wages for services within the state as well as income from a business with operations in the state. Where income is from multiple sources, formulary apportionment may be required for nonresidents. Generally, wages are apportioned based on the ratio days worked in the state to total days worked. All states that impose an individual income tax allow most business deductions. However, many states impose different limits on certain deductions, especially depreciation of business assets. Most of the states allow non business deductions in a manner similar to federal rules. Few allow a deduction for state income taxes, though some states allow a deduction for local income taxes. Eight of the states allow a full or partial deduction for federal income tax. In addition, some states allow cities andor counties to impose income taxes. For example, most Ohio cities and towns impose an income tax on individuals and corporations. By contrast, in New York, only New York City and Yonkers impose a municipal income tax. States with no individual income taxedit. States with no state individual income tax are in red states taxing only dividend and interest income are in yellow. Nine U. S. states do not level a broad based individual income tax. Some of these do tax certain forms of personal income Alaska no individual tax but has a state corporate income tax. Like New Hampshire, Alaska has no state sales tax, but unlike New Hampshire, Alaska allows local governments to collect their own sales taxes. Alaska has an annual Permanent Fund Dividend, derived from oil revenues, for all citizens living in Alaska after one calendar year, except for some convicted of criminal offenses. Florida no individual income tax8 but has a 5. The state once had a tax on intangible personal property held on the first day of the year stocks, bonds, mutual funds, money market funds, etc., but it was abolished at the start of 2. Nevada has no individual or corporate income tax. Nevada gets most of its revenue from sales taxes and the gambling and mining industries. Tennessee has a Hall income tax of 6 on income received from stocks and bonds not taxed ad valorem.