question.jpgIn State Tax

What is State Tax?

Each state as a tax system which collects money, generally, from residents of that state based on their earned income. This money is then used by the state government to fund state and local programs. Most states collect an income tax, just as the IRS does for the federal government. These states generally collect income tax from both full- and part-time residents of the state, as well as non- residents who collected income from an employee within the state. Each state has it own set of tax forms to be used in these various situations.

While most states have an income tax, several do not. Most of these states make up for the lack of income tax collections through their sales tax (although Alaska does not have income tax or sales tax).

You can use the QuizLaw navigation to the left to find out more about your state's tax forms and to learn about which states do and do not have income tax.