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<\/figure><\/div>\n\n\nA few states don\u2019t levy a state income tax at all.<\/p>\n\n\n\n
Here we\u2019ll answer:<\/p>\n\n\n\n
- \n
- What is state tax?<\/li>\n\n\n\n
- Do I need to file state taxes?<\/li>\n\n\n\n
- What is filing a state tax return?<\/li>\n\n\n\n
- Which states don\u2019t have income tax?<\/li>\n\n\n\n
- How to file state taxes<\/li>\n<\/ul>\n\n\n\n
We\u2019ll also provide an overview of tax situations to help you determine if you need to file state taxes. If you want to skip ahead to the rules for your state, you can find that list at the bottom of this page.<\/p>\n\n\n\n
What is state income tax?<\/h2>\n\n\n\n
As its name implies, state income tax is a tax on income earned in a certain state. State taxes fund state budgets rather than the federal government.<\/p>\n\n\n\n
The funds collected from state income taxes support state programs and services like education, transportation, public safety and works, corrections, low-income assistance, and subsidized healthcare programs.<\/p>\n\n\n\n
Note<\/strong>: Taxpayers in all 50 states (and the District of Columbia) pay property tax, but these are typically levied and collected by local governments, not the state. You will not pay property tax with your state income tax return.<\/p>\n\n\n\n
<\/div>File with H&R Block to get your max refund<\/h3>
\nFile online<\/a><\/div>\n\n\n\nFile with a tax pro<\/a><\/div>\n<\/div><\/div><\/div>\n\n\n\nDo I have to file a state tax return?<\/h2>\n\n\n\n
Not everyone in the United States has to file state taxes. Typically, the need to file is triggered if you live or earn income in a state that has income tax (see below) and you meet certain criteria. Let\u2019s review a few common situations where state tax filing is required:<\/p>\n\n\n\n
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- Filing a federal return<\/strong>: Many states require you to file state income taxes if you\u2019re also required to file federal income taxes.<\/a> (Note: the Internal Revenue Service (IRS) allows you to claim a deduction up to $10,000 for state income tax on your federal tax return (Tax Form 1040<\/a>) if you itemize deductions on your federal return.)<\/li>\n\n\n\n
- Having income over a threshold<\/strong>: In some states, you\u2019ll only need to file if your income is above a certain threshold. This amount will vary state-by-state and can also vary by your filing status.<\/a><\/li>\n\n\n\n
- Getting a refund<\/strong>: If you\u2019ve had more state income taxes withheld from your paycheck than you owe, you could have a refund coming. However, you won\u2019t be sent your state refund<\/a> automatically. You\u2019ll need to file a return to receive it. In this situation, it may be worth it to file your state return even though it may not be a requirement.<\/li>\n\n\n\n
- Claiming certain credits<\/strong>: If you\u2019re eligible to claim certain refundable credits on your state tax return, you could get money back from the state. Similar to receiving a refund, you\u2019ll first have to file your state taxes to claim the tax credit.<\/li>\n<\/ul>\n\n\n\n
<\/a>Are you required to file state taxes if you don\u2019t live there?<\/h3>\n\n\n\n
If you lived in a state for an entire year, there\u2019s no question about your residency status. But what if you moved during the year? Or, what if you were not a resident at all and you just earned a wage or other taxable income from the state? Let\u2019s go over a few scenarios where you have to file state taxes, possibly in more than one state:<\/p>\n\n\n\n
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- Moving from state to state<\/strong>: If you moved from one state to another during a tax year, you may have to file state taxes in both states. Some states base the filing requirement on a minimum number of days or months you spend in the state. In other states, moving there with the intent to stay permanently is enough to require filing a state return. Say you moved to California recently. You might wonder if you have to file state taxes in California if you only moved there permanently in late December. In this case, you\u2019re considered a part-year resident and you DO<\/em> need to file a return in California and possibly the state you moved from. (Related: <\/strong>See the current tax brackets<\/a> and rates.)<\/li>\n\n\n\n
- Work in one state and live in another<\/strong>: Working across state lines can mean that you need to file two state returns, but it doesn\u2019t necessarily mean that you are taxed twice. In some cases, you might be able to take advantage of state income tax reciprocity<\/a>, which can exempt income earned by nonresidents of neighboring states. In other cases, you might be able to receive a credit for taxes paid to the other state.<\/li>\n\n\n\n
- State-based income sources<\/strong>: Earning income in a state can mean you have a filing requirement, even if you don\u2019t live or work there. Examples are rental income or investments like a real estate investment trust or a partnership located in the state. Other types of income requiring filing a state return might include lottery or gambling winnings or proceeds from the sale of property from your non-resident state.<\/li>\n<\/ul>\n\n\n\n
Note:<\/strong> These types of income are also taxed by your resident state no matter where it\u2019s earned. However, your resident state may allow a credit against state income tax<\/a> for the income taxes paid to another state on the same income.<\/p>\n\n\n\n
<\/a>States without income tax<\/h2>\n\n\n\n
If you live or work in one of the states below that don\u2019t have individual income tax (also sometimes called personal income tax), you won\u2019t need to worry about filing a state tax return for that state. There are multiple no income tax states<\/a>. They include:<\/p>\n\n\n\n
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- Alaska<\/li>\n\n\n\n
- Florida<\/li>\n\n\n\n
- Nevada<\/li>\n\n\n\n
- New Hampshire*<\/li>\n\n\n\n
- South Dakota<\/li>\n\n\n\n
- Tennessee*<\/li>\n\n\n\n
- Texas<\/li>\n\n\n\n
- Washington**<\/li>\n\n\n\n
- Wyoming<\/li>\n<\/ul>\n\n\n\n
*Note: New Hampshire and Tennessee are two states with the lowest taxes<\/a>\u2014at 0% for income taxes on earned income\u2014but they do tax dividend and interest income. That said, you may still need to file a state return for those two states.<\/p>\n\n\n\n
**Washington doesn\u2019t have a state individual income tax, but levies a 7% percent tax on the sale or exchange of long-term capital assets like stocks, bonds, business interests, or other investments and tangible assets. Washington residents don\u2019t have to file a personal income tax return, but they are required to file a capital gains tax return<\/a> and a copy of their federal return if they have capital gains for the tax year.<\/p>\n\n\n\n
<\/a>State income tax details and when you have to file<\/h2>\n\n\n\n
Visit the revenue department websites for the state(s) where you live and work to find current details about when you\u2019re required to file state taxes, current state tax rates, and how to file state taxes. The states without income tax are listed above and are not included here.<\/p>\n\n\n\n
- Work in one state and live in another<\/strong>: Working across state lines can mean that you need to file two state returns, but it doesn\u2019t necessarily mean that you are taxed twice. In some cases, you might be able to take advantage of state income tax reciprocity<\/a>, which can exempt income earned by nonresidents of neighboring states. In other cases, you might be able to receive a credit for taxes paid to the other state.<\/li>\n\n\n\n
- Having income over a threshold<\/strong>: In some states, you\u2019ll only need to file if your income is above a certain threshold. This amount will vary state-by-state and can also vary by your filing status.<\/a><\/li>\n\n\n\n
- Filing a federal return<\/strong>: Many states require you to file state income taxes if you\u2019re also required to file federal income taxes.<\/a> (Note: the Internal Revenue Service (IRS) allows you to claim a deduction up to $10,000 for state income tax on your federal tax return (Tax Form 1040<\/a>) if you itemize deductions on your federal return.)<\/li>\n\n\n\n