State income taxes are taxes levied from the income of each individual resident of the state. States are independent from one another in their taxing authority and all state tax forms differ in some ways. Forms for these taxes usually start with federal taxable income or with federal adjusted gross. State income taxes are on top of the federal income tax which currently tops out at 35%. As of 2006, the highest rate of state income tax is that of Vermont, with a maximum rate of 9.5%. Of all states that are imposing state income taxes, the lowest maximum rate is that of Illinois, which levies a flat tax rate of 3%.
Some states do not impose state income taxes