State taxes are compulsory contributions to state revenue levied by the government on personal income and business profits. They may also be additional amounts to the cost of some goods, services and transactions. All states have their own tax system where they acquire the necessary revenue to maintain their governments through tax collection, fees, and licenses. With the revenue that the government receives through these state taxes, it makes public services available to their citizens. Some examples of these public services are health and welfare benefits, public schools, police protection and the operation of the state government.
There are many types of state taxes. Here are some of the most common: