How do state and local severance taxes work? Q.How do state and local severance taxes work? A.Severance taxes are taxes on the extraction of natural resources such as oil and natural gas. State and local governments collected a combined $11.8 billion in revenue from severance taxes in 2021. Read more about How do state and local severance taxes work?
How do state earned income tax credits work? Q.How do state earned income tax credits work? A.The federal earned income tax credit (EITC) provides a refundable credit to taxpayers based on their income and family circumstances (such as marital status and number of children). In 2023, 31 states and the District of Columbia additionally offer a state EITC. Most state credits are calculated as a percentage of the federal credit. Read more about How do state earned income tax credits work?
How do state and local individual income taxes work? Q.How do state and local individual income taxes work? A.The individual income tax (or personal income tax) is a tax levied on the wages, salaries, dividends, interest, and other income a person earns throughout the year, generally imposed by the state in which the income is earned. State and local governments collected a combined $545 billion in revenue from individual income taxes in 2021. Read more about How do state and local individual income taxes work?