Understanding state taxes is important, especially as tax season nears. It’s essential to be aware of the different tax requirements, potential refunds, and the possibility of garnishments in your state.

State income tax is a key financial responsibility, typically due by April 15 annually. However, some states like Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming do not have a state income tax. Other states, such as New Hampshire and Washington, tax specific types of income, such as interest, dividends, or capital gains.

Property taxes are also a significant consideration, with varying median rates across states. For instance, Alabama has the lowest median property taxes, whereas New Jersey has the highest. It’s important to consider these taxes in your financial planning.

Retirement income taxation varies by state as well. Some states offer exemptions on Social Security benefits and pension payments, while others, like Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania, impose inheritance taxes.

Filing state taxes can seem overwhelming, but understanding the process helps. You can file either electronically or by mail, but accuracy is crucial. The timeline for receiving state tax refunds can vary, depending on the filing method and the state’s regulations.

To know when your local and state tax refund will be paid, it’s typically faster if you e-file. The IRS usually issues refunds within 21 days for electronically filed returns. For paper returns, the process takes longer. You can check your refund status online or by phone if you e-filed. If you mailed your return, expect a longer wait and consider contacting your state’s tax department for updates. Users of tax preparation services like TaxAct can also track their return status through the service’s E-File Status page.