Income is a key factor when it comes to your overall financial situation, and the amount you owe in state income taxes for each year is determined by the total salary you actually earn.
A little known facet of this tax burden, however, is that state laws tend to vary significantly on what income level a wage earner must be to qualify for their full tax due. Many states have calculated their wage earner thresholds at the federal poverty rate levels, which means that many workers will not be subjected to any taxes at all. It's a result of the federal government passing its tax laws at 35% tax rates, which generally make it very difficult for the states to levy taxes at state income levels exceeding this level. So if you make less than a specific state's salary threshold, you may be exempt.
The good news: If you are not subject to these state income tax rates in Washington, D.C., Maryland or Virginia, you may owe no state income taxes at all for the year. This is because the federal government has allowed states to set their own income tax levels at an extremely low level. The new federal tax law also limits your total taxes owed in any given year to $10,450. If you are on the extreme low-end of this income threshold then chances are you will owe no state income taxes in 2014!
A little known facet of this tax burden, however, is that state laws tend to vary significantly on what income level a wage earner must be to qualify for their full tax due. Many states have calculated their wage earner thresholds at the federal poverty rate levels, which means that many workers will not be subjected to any taxes at all. It's a result of the federal government passing its tax laws at 35% tax rates, which generally make it very difficult for the states to levy taxes at state income levels exceeding this level. So if you make less than a specific state's salary threshold, you may be exempt.
The good news: If you are not subject to these state income tax rates in Washington, D.C., Maryland or Virginia, you may owe no state income taxes at all for the year. This is because the federal government has allowed states to set their own income tax levels at an extremely low level. The new federal tax law also limits your total taxes owed in any given year to $10,450. If you are on the extreme low-end of this income threshold then chances are you will owe no state income taxes in 2014!
