Question

The amount you owe in state income tax is based on what?

Answer 1

The amount you owe in state income tax is based on your income level. The government determines what income levels are taxed at. Some states are not subject to state tax and others are, each are based on their own individual states. 

Answer 2

The answer is: yearly earnings

From your yearly earnings, you would be placed on a specific income bracket. Each bracket has to pay the taxes based on different interest rates. (higher earning would means that you have to pay higher tax).

In united states, those income brackets are:

- 10% tax rate for those who earn between $0 to $9,275

- 15% tax rate for those who earn between $9,276 to $37,650

- 25% tax rate for those who earn between$37,650 to $91,150

- 28% tax rate for those who earn between $91,150 to $190,150