Income Taxes are one of the main sources of government revenue, making 27% of state tax collections. Individuals who are earning income are liable to responsibly file their own income tax forms. While taxpayers have to pay many kinds of taxes, the income tax seems a burden to them.
Individuals in forty three states in the USA are liable to pay income tax. Of these states, 41 pay tax wage and salary income while the other 2 states, namely, Tennessee and New Hampshire are solely tax dividends.
8 states from these 43 states have a single tax rate structure. On the other hand, 33 states charge graduate-rate income taxes. Each state has a different tax bracket subsequently.
California and Missouri have 10 tax brackets. The peak marginal rate is 13.3%.
There are however 7 states that charge no income tax.
Income Tax Rate Changes in 2016
- Arkansas: Top marginal rate dropped from 7% to 6.9%
- Hawaii: The temporary tax boosts have been eliminated. The peak marginal rate changed from 11% to 8.25%
- Maine: A 3rd tax bracket has been added. The marginal rates changed from 6.5% to 5.8% and 7.95% to 7.15%.
For Further Income Tax Information:
If you require further individual income tax related information, feel free to contact Tax Help MD experts. The professionals have expertise in all tax related subjects varying from basic tax tips, income tax, tax return info and filing, payroll tax issues and much more.