According to recent data from the Tax Foundation individual income taxes are a major source of state government revenue, and account for roughly 38% of state tax collections with forty-three states (and D.C.) levying individual income taxes. As you can imagine, there is no one size fits all when it comes to how each state levies taxes:
“States’ approaches to income taxes vary in other details as well. Some states double their single-filer bracket widths for married filers to avoid imposing a “marriage penalty.” Some states index tax brackets, exemptions, and deductions for inflation, while many others do not. Some states tie their standard deductions and personal exemptions to the federal tax code, while others set their own or offer none at all.”
Click here to read the full report at the Tax Foundation.
