Ever
wonder why your friend in Florida brags about tax season? It might be
because their state doesn’t collect any income tax. Let’s break down
which states take the biggest (and smallest) bites out of your paycheck.
State income taxes are separate from federal income taxes and help
fund services including education (including K–12 teacher salaries),
healthcare, infrastructure, public assistance, and state prisons. Some states have a flat income tax rate, while others have a
progressive rate, which means that higher earners pay a larger
percentage of their income.
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