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EZFile supports state tax calculations for all 50 states, Washington DC, and US territories (Puerto Rico, US Virgin Islands). This guide explains how state taxes work and what to expect.

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How State Taxes Work

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W-2 Boxes for State Tax

BoxDescription
Box 15State and state ID number
Box 16State wages, tips, etc.
Box 17State income tax withheld
Box 18Local wages (if applicable)
Box 19Local tax withheld (if applicable)
Box 20Locality name or code
State wages (Box 16) often differ from federal wages (Box 1) because states have different rules for what counts as taxable income.

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States With No Income Tax

The following states do not levy state income tax on wages:

Alaska

AK

Florida

FL

Nevada

NV

New Hampshire

NH

South Dakota

SD

Tennessee

TN

Texas

TX

Washington

WA

Wyoming

WY
If you live in one of these states, you only need to file a federal return — no state paperwork required.

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States With Income Tax

EZFile provides detailed calculations for all income tax states. State tax systems vary widely:

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Common State Tax Structures

These states apply a single tax rate to all income:
StateRate (2025)
Colorado4.40%
Illinois4.95%
Indiana3.05%
Kentucky4.50%
Michigan4.25%
North Carolina4.50%
Pennsylvania3.07%
Utah4.65%

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State Deductions and Credits

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Standard Deduction

Most states with income tax offer a standard deduction, but amounts vary:
  • Some mirror the federal deduction
  • Some have their own fixed amounts
  • Some (like PA) have no standard deduction at all

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Student Loan Interest

Most states do NOT allow a student loan interest deduction at the state level, even if you claimed it federally.

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Schedule 1-A Deductions

The 2025 Schedule 1-A deductions (tips, overtime, car loan, senior) are federal-only. States do not conform to these deductions.

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Local Taxes

Some states have local income taxes in addition to state tax:
Nearly all PA municipalities levy an Earned Income Tax (EIT):
  • Pittsburgh: 3.0% (1% city + 2% school district)
  • Philadelphia: 3.75% resident rate
  • Most other PA localities: 1.0% - 2.0%
Look at W-2 Box 18-20 for local tax info.
Many OH cities levy local income tax:
  • Columbus: 2.5%
  • Cleveland: 2.5%
  • Cincinnati: 2.1%
Varies by municipality.
A few other states (like Maryland, Kentucky, Indiana) have county-level income taxes. EZFile will detect these from W-2 Box 18-20.

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How EZFile Handles State Taxes

1

Detect your state

EZFile reads Box 15 from your W-2 to determine your state
2

Calculate state tax

Using state-specific rules, EZFile calculates:
  • State taxable income (Box 16)
  • State tax owed
  • State refund or amount owed
3

Calculate local tax

If Box 18-20 show local tax, EZFile calculates local refund/owed
4

Provide filing guidance

EZFile tells you where to file your state return (often available through state e-file or Free File)

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State-Specific Resources

EZFile has detailed reference files for all states. Use /ezfile:explain <state name> taxes to learn about your specific state.

California

Progressive brackets, state standard deduction, CA tax credits

New York

Progressive brackets, NYC additional tax, state credits

Pennsylvania

Flat 3.07% rate, no standard deduction, local EIT taxes

Texas

No state income tax — federal only

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Common Questions

States have different rules for taxable income:
  • PA taxes retirement contributions (401k, 403b)
  • Some states exclude military pay
  • Some states have different treatment of benefits
This is why Box 16 ≠ Box 1.
No. Free File Fillable Forms is federal-only. Most states offer their own e-file system:
  • Visit your state’s revenue or taxation website
  • Look for “e-file” or “online filing”
  • Many states participate in the IRS Free File program
EZFile does not support multiple states. If you have W-2s from different states, you’ll need:
  • A CPA or enrolled agent
  • Or full-service tax software like TurboTax or H&R Block
You’ll need to pay when filing your state return. Make sure to file on time (typically April 15) to avoid penalties.

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Supported States Summary

EZFile supports all 50 states, DC, and territories:
CategoryStates/Territories
No income taxAK, FL, NV, NH, SD, TN, TX, WA, WY
Flat rateCO, IL, IN, KY, MI, NC, PA, UT
Progressive bracketsAL, AZ, AR, CA, CT, DE, GA, HI, IA, ID, KS, LA, MA, MD, ME, MN, MO, MS, MT, NE, NJ, NM, NY, ND, OH, OK, OR, RI, SC, VA, VT, WI, WV, DC
TerritoriesPR, USVI
For detailed state-specific information, see the reference files in reference/states/ or ask EZFile: /ezfile:explain <state> taxes

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