What's income tax?

[RGLD]

I pay my federal, and state taxes and that is based on my "income". Is that it the same thing?

I've went through https://www.investopedia.com/terms/i/incometax.asp but it doesn't tell me if they are the same.

I've been told Florida has no income tax? Does that mean there is no state tax and only federal? lol I'd move there! I have to pay Federal, State, and City taxes here. Plus tax on purchases.

 

[deaddog]

https://www.investopedia.com/financial-edge/0210/7-states-with-no-income-tax.aspx

 

[newwurldmn]

I pay my federal, and state taxes and that is based on my "income". Is that it the same thing?

I've went through https://www.investopedia.com/terms/i/incometax.asp but it doesn't tell me if they are the same.

I've been told Florida has no income tax? Does that mean there is no state tax and only federal? lol I'd move there! I have to pay Federal, State, and City taxes here. Plus tax on purchases.

have you never paid taxes before?

 

[RGLD]

have you never paid taxes before?

They are called accountants. I pay them. I know what I told you. I know what the 3 taxes are I'm just asking if income tax is just another name for those I mentioned.

To put it clearly: If a state has no Income tax. Does that mean there is no state tax? Or is this another tax on top?

 

[Baron]

Here in Florida there's a 5.5% income tax if your business is operating as a C-Corp, but if you are an individual or a business operating as an S-Corp, LLC or Sole Proprietor, you are exempt from that tax.

So to answer your question, if you are an individual there's no state income tax here. How Florida generally compensates for that is by imposing a tourism tax on short term stays at hotels, condos, etc. So instead of charging the residents a state income tax, we shift all that burden over to the millions of tourists that flock to Florida every year for vacations.

 

[tiddlywinks]

To put it clearly: If a state has no Income tax. Does that mean there is no state tax? Or is this another tax on top?

There are many types of taxes (at the state level)

Personal Income Tax is based on income. Some other common types of tax include...

Sales Tax
Property Tax
Fuel Tax
Cigarette Tax
Inheritance/Estate Tax

The above is not an exhaustive list. State taxes are placed into law and implemented by the specific state governments. State taxation of business structures is a separate set of taxes, also implemented at the state level.

 

[RGLD]

Here in Florida there's a 5.5% income tax if your business is operating as a C-Corp, but if you are an individual or a business operating as an S-Corp, LLC or Sole Proprietor, you are exempt from that tax.

Thanks for this. So in other words, if I move to Florida and work at Wendy's, I will only be paying federal taxes?

Income tax = Federal+State+City. I get it now.

 

[Baron]

Thanks for this. So in other words, if I move to Florida and work at Wendy's, I will only being paying federal taxes?

That's correct.

 

[kmgilroy89]

The following states have no state/local income tax:
FL, TX, SD, WY, NV, NV, AK
TN and NH only tax interest and dividends, but TN will be completely income tax free for 2021. The other 41 states tax ordinary income with CA having the highest top rate at 13.3%.

 

[murray t turtle]

There are many types of taxes (at the state level)

Personal Income Tax is based on income. Some other common types of tax include...

Sales Tax
Property Tax
Fuel Tax
Cigarette Tax
Inheritance/Estate Tax

The above is not an exhaustive list. State taxes are placed into law and implemented by the specific state governments. State taxation of business structures is a separate set of taxes, also implemented at the state level.

%%
Good points TW;
but its important to note those are mostly ''user fees'' IF you dont want or use ammo, you pay no federal user fee or any tax on it . But its money/ user fee well worth it on ammo...……………………………………………………………………………………….