What are the differences between state and federal tax brackets?

What are the differences between state and federal tax brackets?

Federal tax brackets are set by the IRS and apply to all taxpayers, while state tax brackets vary by state.

How do I know which tax bracket I fall into?

You can determine your tax bracket by looking at your taxable income and comparing it to the current tax rates for both state and federal.

Are state tax rates generally higher than federal rates?

Not necessarily. State tax rates can vary widely; some states have no income tax, while others may have higher rates than federal.

Can I deduct state taxes from my federal tax return?

Yes, you can deduct state income taxes on your federal return if you itemize your deductions.

What happens if I move to a different state?

If you move, you'll need to update your tax information and may be subject to different state tax brackets.