What is the difference between federal and state income tax?

In Florida, both federal and state income taxes are imposed on individuals and businesses. The primary difference between these two taxes is that the federal income tax is determined and collected by the federal government while the state income tax is determined and collected by the state government. The Internal Revenue Service (IRS) is responsible for collecting the federal income tax while the Florida Department of Revenue is in charge of collecting the state income tax. The amount of federal income tax you owe is determined by the amount of taxable income you earn for the year. In Florida, the tax rate ranges from 0% to 37% depending on the amount of taxable income you earned in the year. The amount of state income tax you owe is determined by the amount of taxable income you earned for the year, as well as the state tax rate, which is based on the income you earned. The state tax rate ranges from 0% to 5.5% in Florida, depending on the income you earned in the year. In addition, the federal government allows deductions to be taken from your taxable income, while the state of Florida does not. These deductions reduce the amount of income that is taxable, which in turn lowers the amount of taxes you owe. Overall, the primary difference between federal and state income taxes is that they are determined and collected by two different entities. The federal income tax is determined and collected by the IRS while the state income tax is determined and collected by the Department of Revenue in Florida. Furthermore, the applicable tax rates and deductions are specific to each type of tax.

Related FAQs

What is the tax rate for inherited property?
What is a tax-deferred investment?
What is the Inheritance Tax?
What is a tax evasion?
What are the penalties for not filing taxes?
How do I claim my dependents on my taxes?
How do I know if I qualify for the Earned Income Tax Credit?
Are Social Security benefits taxable?
What is the tax rate for self-employment income?
How much money can I expect to get back in a tax refund?

What is the difference between federal and state income tax?

Related FAQs

Related Blog Posts