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Tax Terms

State Income Tax (SIT)

Income tax levied by your state of residence, ranging from 0% to 13.3% depending on the state.

Common paystub code: SWT / SIT / STATE

Full Definition

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).

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