How to File and Pay State and Local Taxes in the U.S.
Many states, counties, and cities impose taxes on income, property, and purchases. Understanding which taxes apply to you—and how to comply—helps you avoid penalties and take advantage of available credits or exemptions.
Common Types of State and Local Taxes
1) Individual income tax
Most states tax wages, salaries, and other income. Your liability depends on:
Your taxable income (after state-specific adjustments, deductions, and credits).
The jurisdiction’s rate structure (flat vs. graduated rates).
Your residency status (resident, part-year resident, nonresident).
Some cities and localities also levy their own local income taxes (for example, certain jurisdictions in Ohio, Pennsylvania, Michigan, and New York City). If you work in one place and live in another, you may need to file more than one return.
2) Personal property tax
Some states and local jurisdictions tax tangible personal property such as cars, boats, RVs, or business equipment. Assessments are usually based on the item’s value and may decline as the asset depreciates. Not every state imposes this tax, and rules for what is taxable vary widely.
3) Real property (real estate) tax
Counties and municipalities typically assess property taxes on land and buildings. Local assessors estimate market value based on location, comparable sales, and condition, then apply the local millage or rate. Homeowners may qualify for exemptions or relief (e.g., homestead, senior, veteran, disability), which can reduce the bill.
4) Sales and use tax
A sales tax is charged on many retail purchases; the rate often combines state, county, and city portions. Some items (e.g., groceries or prescription drugs in many states) may be exempt or taxed at a reduced rate. If you buy taxable items without paying sales tax (such as online or out-of-state purchases), you may owe use tax to your home state.
5) Other common state/local taxes and fees
Excise taxes (e.g., on fuel, tobacco, certain services).
Business taxes (franchise, gross receipts, or privilege taxes) depending on entity type and state law.
Employer payroll obligations (state unemployment insurance, paid family leave where applicable).
Special assessments for local improvements (e.g., street lighting, sewer).
Where and How to File or Pay
State taxes (income, sales/use, business, etc.)
Find your state’s tax authority (often called the Department of Revenue, Department of Taxation, or Comptroller). The official site will provide forms, e-file portals, payment options, due dates, and contact information.
File and pay online when possible. Most states offer e-filing, estimated payments, payment plans, and account dashboards to check balances and notices.
Deadlines. Many states align individual income-tax deadlines with the federal filing season (around mid-April), but dates and extension rules can differ. Sales/use taxes and employer filings often have monthly or quarterly due dates.
Local taxes (city/county income tax, property tax)
City/County income tax: Visit your city or county finance website for forms, rates, and employer withholding rules. Some areas require separate local returns.
Real estate tax: Check your county assessor/treasurer site to review your property’s assessed value, appeal procedures, due dates, and payment options (lump sum or installments).
Personal property tax: Your locality or state site will list what’s taxable, assessment methods, and how to file returns for vehicles or business equipment.
Prefer to navigate in Spanish?
Most state tax websites include Spanish resources or phone support. Look for a “Contact Us” page or language selector. You can also call the main number and request Spanish assistance.
How to Check Refunds, Balances, and Deadlines
State income-tax refund: Nearly every state offers an online “Where’s my refund?” tool. You’ll typically need your SSN/ITIN, filing status, and refund amount.
Amounts owed and notices: Create an online account with your state DOR to view balances, set up payment plans, and respond to notices.
Local property tax: Use your county treasurer’s portal to see installments due, pay online, or enroll in autopay (where available).
If You Need Help or Have a Problem
State Department of Revenue (DOR):
Explains your rights and obligations (many states publish a Taxpayer Bill of Rights).
Provides guidance on returns, assessments, penalties, and appeals.
Offers options to resolve delinquencies, including payment agreements and, in limited cases, penalty abatement.
Taxpayer advocate or ombuds offices:
Many states host independent or semi-independent taxpayer advocate services that help resolve complex issues, protect taxpayer rights and privacy, and ensure fair treatment during audits and collections.
Property-tax assessment appeals:
If you believe your valuation is too high, you can usually appeal to the assessor or local review board.
Gather comparable sales, photos, or an appraisal to support your case.
Watch appeal deadlines—they’re strict.
Community assistance:
VITA/TCE sites (IRS-sponsored) primarily help with federal returns for qualifying taxpayers, but many can e-file states too.
Local nonprofits and legal-aid clinics sometimes offer help with state and local tax controversies. Search for “low-income taxpayer clinic (LITC)” or state-specific aid.
Practical Tips and Reminders
Residency matters. If you moved states or worked in multiple states, you may need multiple returns (resident, part-year, nonresident).
Withholding and estimates. Adjust your state withholding with your employer or make quarterly estimated payments if you’re self-employed or have untaxed income.
Use tax. Track out-of-state or untaxed online purchases—most state income-tax forms include a line to report use tax.
Keep records. Save W-2s/1099s, property-tax bills, purchase invoices, and correspondence for at least three to four years (longer for property basis records).
Credits and relief. Explore homestead exemptions, circuit-breaker credits (income-based property-tax relief), and sales-tax exemptions. Seniors, veterans, and people with disabilities may qualify for additional relief programs.
Business obligations. If you sell taxable goods/services or sell remotely into other states, review registration, sales-tax collection, and economic nexus thresholds. Marketplace facilitators may collect for you in some states, but you’re still responsible for compliance.
Quick Checklist
Identify your state DOR and your local (county/city) tax offices.
Confirm which taxes apply: income, property, personal property, sales/use.
Note filing and payment deadlines; set reminders.
Use official e-file and online payment systems when available.
If you need help, contact the state DOR, a taxpayer advocate, or community assistance programs.
This overview is for general guidance only and isn’t legal or tax advice. For state-specific rules, always rely on your official state and local tax authorities.