We're roughly at about the midpoint of the official tax filing season, based on the Jan. 23 date when the Internal Revenue Service began processing individual tax returns.
For many, this means they need to get serious about filing their taxes, which are due this year on April 18. The filing focus is especially true for folks who also must submit returns to their state tax departments.
That's the majority of U.S. taxpayers. Only eight states — Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming — have no personal income tax. New Hampshire collects tax only on certain interest and dividend income, but that's being phased out. The Granite State is scheduled to join the no-individual-income-tax club on Jan. 1, 2027.
Most states also follow the IRS' filing schedule, meaning they too want their returns in mid-April. A handful have later state tax days:
- Delaware, April 30
- Hawai'i, April 20
- Iowa, April 30
- Virginia, May 1
To meet those deadlines, most state taxpayers need to complete their federal 1040 first, since the information there is used as at least a starting point for most state tax returns.
Your tax preparer or tax software will take care of transferring the correct federal data to the state forms.
Some Free File providers (there are 7 software companies participating this year), also offer no-cost completion of state returns. If, however, your state isn't one covered under the free tax prep and e-filing option, check with your state's tax department. Most offer their own version of direct, free tax filing.
A closer look at state tax rates: I've lived most of my taxpaying life in a no-income tax state, either my native Texas or Florida. But I do remember having to do double tax filing duty that one filing season we were living in Washington, D.C., and then for the many good years we lived in Maryland.
Individual income taxes are a major source of state government revenue, accounting for 40 percent of state tax collections in fiscal year 2020, according to the Tax Foundation. You can see how your state's taxes compare in the D.C.-based tax policy nonprofit's map showing 2023 tax rates below.
Also check the Tax Foundation's full analysis, which also has details on each state's tax brackets.
Local taxes due in some places, too: And don't forget about local income taxes. The Tax Foundation says these collections are a significant source of local tax revenue in six states, and at least a modest source of revenue in 10 others.
Yes, Maryland is one of them, with local jurisdictions' piggyback method that relies on the state for their taxes' collection and administration. The Old Line State also is one of just six states with local tax collections greater than the national average of 5 percent, and all of them are well above it:
- Maryland at 34.9 percent;
- Kentucky at 26.2 percent;
- Ohio at 22.5 percent,
- Pennsylvania at 18.8 percent,
- New York at 13.3 percent,
- and Indiana at 13.5 percent.
Still, I loved living in Maryland. It will always be my second home. Plus, you never escape state taxes of some sort. Texas and Florida make up for no income taxes by nicking us at property tax time and with sales tax (state and local) on almost every purchase.
But my love of crab cakes, the Orioles and Ravens (and original Colts), and the magnificent Chesapeake Bay notwithstanding, I do admit that I'm also really glad to file just a federal tax return every April.
Tumblin' across the country: Also check out my tumblr tax blog Tumbling Taxes, and its state tax filing companion post that features one of the country's great songs, This is Your Land.
You also might find these items of interest:
- State tax law 2023 changes, outlook for more
- State relief payments issued in 2022 are federally tax free
- May 15 is delayed Tax Day for disaster victims in Alabama, California, and Georgia
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