Income tax levied by your state of residence, ranging from 0% to 13.3% depending on the state.
Common paystub code: SWT / SIT / STATE
State Income Tax (SIT) is tax withheld by your employer on behalf of your state government. Nine states have no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. The remaining 41 states and D.C. have rates ranging from about 1% to 13.3% (California). Some states use a flat rate (e.g., Illinois at 4.95%), while others use progressive brackets. Your state tax is determined by where you LIVE, not where your office is located (with some exceptions for reciprocal agreements).
On a typical US paystub, state income tax (sit) information appears in one of three sections — the earnings summary, the deductions list, or the year-to-date (YTD) totals — depending on the type of item. Understanding where to find it helps you verify accuracy, catch payroll errors, and prepare for tax season or loan applications.
Whether you receive a digital paystub through your employer's payroll system (such as ADP, Gusto, QuickBooks Payroll, or Paychex) or a traditional paper stub, the information for state income tax (sit) is required by federal labor law to be itemized and accurate. The Fair Labor Standards Act (FLSA) and state-specific wage transparency laws mandate that employees can review and verify each line of their paystub.
Accurate knowledge of state income tax (sit) is essential for several real-world scenarios common to US workers: when applying for an apartment rental (landlords typically require recent paystubs as proof of income), when applying for a car loan or mortgage (lenders verify gross and net pay across multiple paystubs), when filing your annual tax return (IRS Form 1040 reconciles to your year-to-date W-2 or 1099 totals), and when changing jobs (you may need to provide last paystubs to your new employer for benefits eligibility verification).
If you spot an error related to state income tax (sit) on your paystub, US labor law requires your employer to investigate and correct the issue. The American Payroll Association reports that nearly 75% of US workers will experience at least one payroll error during their career, which is why understanding each line item — including state income tax (sit) — is one of the most valuable financial literacy skills you can develop.