The information in this article is up to date through tax year 2022 (taxes filed 2023).
States use the revenue earned from tax collection, fees, licenses, and federal grants to finance their government services and institutions. These include schools, law enforcement departments, health and welfare benefits, and other programs that are beneficial to the community members.
There are several types of state and local taxes. They vary by state, but typically include:
- Individual income taxes
- Corporate income taxes
- Property taxes
- Motor vehicle license taxes
- Sales tax
- And more
Am I required to file a state tax return?
Typically, it depends on where you live and if your income is over a certain threshold. Every state has its own tax laws and requirements. Check your state’s department of revenue or taxation website to find out if you should file a state return this year.
If you live or work in one of these states, you do not have to file a state tax return or pay income taxes to that state:
- South Dakota
Tennessee used to tax investment income and interest, but that was fully repealed on Jan. 1, 2021. Similarly, New Hampshire only taxes investment income and interest, but the state is set to gradually phase that out starting on Dec. 31, 2023. In the meantime, you may still have to file a New Hampshire state return if you have those types of income.
Remember – even if you are not required to file a state return, you may still be subject to federal income taxes.
If your state owes you a tax refund, you must file a return to claim it – even if you’re not required to file a state return.
Where’s my state tax refund?
You can check the status of your state refund online through your state’s website.
When you file with TaxSlayer, your federal and state return statuses are easily accessible in your account. When you log in, you can clearly see when your returns have been accepted. Once your state accepts your return, your refund is processed and distributed.
How do I pay my state taxes?
When you file with TaxSlayer, you can pay any state taxes you owe when you file. Otherwise, you can mail in your payment with a paper return, or see if your state’s department of revenue or taxation accepts online payments with a credit/debit card or bank transfer.
Do I have to pay back general welfare and disaster relief payments?
If you received government payments from your state due to disaster relief, including COVID-19 initiatives, you don’t have to report them on your state tax return. This also applies to spillover payments announced in 2022 and distributed in 2023.
Check out this list provided by the IRS to see if you qualify.
When are my state taxes due?
State tax deadlines are typically the same as the federal deadline. However, sometimes states choose to extend the deadline for tax-relief purposes, e.g., natural disasters and other unexpected, special circumstances.
How do I file an amended state return?
Most states require you to file amended state returns by mail. You can prepare an amended state return online with TaxSlayer, then print and mail it. Check with your state taxing authority for more information on your state’s amended return policy.
How do I file a state tax extension?
Each state has its own requirements for tax extensions. Some allow automatic extensions to file without having to file a form to request one, whereas some require you to file a request.
Keep in mind – a tax extension simply gives you more time to file. It does not give you more time to pay your taxes once you’ve filed.
Do I need to file multiple state tax returns?
You may need to file multiple state tax returns if you have moved within the last year, work in multiple states, or live and work in different states.
In 2015, the U.S. Supreme Court ruled against double taxation – meaning two or more states can no longer tax someone for the same income. If you work in a state that has a reciprocal tax agreement with your home state, you may be able to submit a document to your employer and avoid having taxes withheld from your paycheck. If the two states do not have a reciprocal agreement, you may need to prepare multiple state returns, but you will be refunded for unnecessary withholding from your paychecks.
For more details about these special circumstances, read Living in One State, Working in Another.
Are state taxes deductible?
The SALT deduction allows taxpayers to deduct either their state income tax or state sales tax, plus state and local property taxes. Until tax year 2025, the cap on the SALT deduction (income (or sales) tax plus property taxes combined) is $10,000.
For help calculating your SALT deduction, read How do I calculate my deduction for state and local sales taxes?
See more answers to your state tax questions here.