Most states in the US impose a state income tax, which you pay in addition to federal income tax. But if you live in one of a handful of those states, you might be lucky enough to see your tax rate decrease in 2025. Tax rates vary from state to state, but they always involve collecting a portion of your income from each paycheck. The percentage collected can vary significantly depending on where you live and how much you make. The highest rate in the US is the 13.3% collected in…
