Taxpayers face a variety of taxes, and in addition to paying federal tax to the Internal Revenue Service (IRS), you may also need to file a state tax
return. Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming do not have a state income tax, but if you live in one of the other states or the District of Columbia, you must file a state tax return.
Taxpayers must pay income taxes to their state
based on their income. That means filing a separate income tax with the state revenue agency, and although the details are similar to the information reported on a federal return, they vary slightly depending on the tax laws in the state.
Many taxpayers also incur sales and property taxes from their city or county taxing authorities, and businesses may face additional state taxes. This guide focuses on the state level and what happens if you don’t pay state taxes or file a state tax return.