What are state taxes?

What are state taxes?

State taxes are income taxes that the state imposes on your income. Some states don't impose any taxes. Some states impose fairly large taxes, up to twelve percent, thirteen percent, even. Some states have what they call a piggyback system, where they just figure out what your federal income is, make a few adjustments to it, and then tax you on that amount. Some states like California have their own independent taxing systems, so something that might be deductible on the federal return might not be deductible on the state return. There are different rules for both.