Even if the Federal Income Tax laws plague individuals and businesses, these are only allotted to the federal government and not the state in which you reside. This is why you still have to pay state taxes. The tax rate you pay is based on your gross income. However, state taxes are not uniform for all states. For example, the states of Washington, Nevada, Alaska, Florida, Texas, South Dakota and Wyoming don’t have state taxes at all.
Other states base their tax rates on different kinds of income. The state tax system is generally progressive in the majority of states. This means that the higher your gross income, the higher your tax is. Here’s a comparative example: the highest tax rate is in Vermont with 9.5%, while the lowest state income tax is Illinois flat tax at 3%. You don’t have to worry if it seems complicated for you. You only need to learn a few simple steps to be able to file your state taxes.
With the advent of technology and the Internet, it has become so much easier to pay your taxes. The IRS and and state tax administration agencies have collaborated to make life easier for tax payers by making it possible to file taxes online from the comforts of your home (as long as you have a computer with Internet connection).
Through the Federal/State e-file, you can file both your Federal and State income taxes at the same time. A software program classifies the data for Federal and State returns into two different packages and then sends them to the IRS, making it more convenient and time-efficient.
Filing your state taxes online is more beneficial than doing it manually. You’ll be immediately given a receipt of refund, and the filing process is more accurate, therefore eliminating most errors and glitches in the system. Most importantly, you’ll have proof of filing so you won’t be tricked into paying your taxes twice.
You can also choose to file state taxes directly. You can opt for getting a tax professional to handle your taxes or you can do it yourself through computer software or the tedious task of manually filling out your task forms.