New State Income Tax Rates for 2011, 2012

Tax rates increase as your income increases. The tax rates apply only to the income in each tax bracket range. Also, the tax rates apply only to your taxable income. There are various adjustments and deductions that all lower a person's taxable income. Taxable income is almost always less than your total income.

The new state income tax rates will vary greatly year to year. Sometimes a state will calculate the income tax rate differently based on tax filing status, and sometimes the state tax rate is imposed via a flat rate top to bottom. Naturally corporations are allowed to shirk what would otherwise be their fair share.

Did you know that there are seven states in the U.S. that do not impose state income taxes? Those would be Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming do not have individual state income taxes.

Then there are seven states that have a flat state tax rate. Those are Colorado, Michigan, Illinois, Indiana, Massachusetts, Pennsylvania, and Utah.

Chances are you're more than acquainted with these figures that you've presumably been paying for years in whatever your home state is, but for all general purposes you can peruse the state income tax rates online.

Being familiar with your status as a tax payer is essential to getting the most out of your finances during that oh so irksome annual chore. That's why these informational charts are available via the IRS, helpful websites, and tax preparation companies.

It should be quite clear that state taxes are separate from federal taxes.This is also why your state taxes are filed by the state (duh) and your federal taxes go to the IRS, two separate things.

By answering a few basic questions TurboTax Online can calculate the tax you will be liable for based on your income level. Visit TurboTax Online today to calculate your tax liability for your state tax return.