State Income Tax Estimates

Does the program estimate state income taxes?

The program does not estimate state income tax rates. You must enter your "effective average state income tax rate" as you see in the screenshot below.


This is the average rate applied to all of your taxable income before deductions. For example, your salary income is $100,000. You contribute $20,000 per year to a 401(k) plan. You paid $5,000 in state taxes. Your effective average state income tax rate is: 5,000/80,000 = 6.25%. We recommend going here to estimate your effective state income tax rate.

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