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State Income Taxes for Employees

Most, but not all, states in the US have their own rules for personal state income taxes (SIT).

  • SIT is withheld from employee's paychecks and deposited according to the company's state deposit schedule.
  • SIT is usually calculated using an employee's gross annual wages and the number of exemptions they claim. Arizona, however, calculates SIT as a percentage of gross wages.
  • Most states have their own withholding allowance forms, which are analogous to the Federal W-4. Some states actually use the W-4.
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