United States citizens are subjected to many forms of taxation. In many cases, the same tax is imposed on the local, state and Federal level. For example, the excise tax on gasoline is a federal tax and state tax, as well as a local tax in some jurisdictions. That means that one gallon of gas may be taxed by three separate jurisdictions.
State taxes include many types of excise taxes, including those on alcohol and tobacco. In addition, some state taxes include an excise tax on luxury items, such as vehicles that cost above a certain threshold.
State taxes may also include a sales tax on most goods and services purchased in that state. Most jurisdictions have some exemptions from the sales tax, including items considered a necessity, such as milk and bread.
State taxes may also include income taxes, although some states impose a higher percentage than others. For example, some states impose an income tax at around ten percent of income, whereas Florida imposes no state income tax on those that are employed in the state.
Many forms of taxation are imposed on more than one level. However, federal taxes are imposed on all citizens, whereas state taxes are imposed differently. Individuals in one state may pay a higher sales tax than another state, but they may also have a lower state income tax. States have the right to impose taxes, as long as they comply with federal law.
