Most states levy an income tax on their residents that is in addition to the federal income tax. Laws vary from state to state but in most states the state income tax is a tax on the annual earnings of individuals, corporations, trusts, limited liability companies, and other legal entities.
There are nine states that do not have a state income tax—including Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. But New Hampshire levies a tax on capital gains and Washington state recently enacted a tax on extraordinary profits from the sale of financial assets over $250,000.
In Utah, like most states, residents are subject to a state income tax in addition to the federal income tax. Utah's state income tax system is structured as a flat tax, meaning that it imposes a single rate on all taxable income regardless of income level. This rate is applied to the annual earnings of individuals, corporations, trusts, limited liability companies, and other legal entities. The revenue generated from this tax is used to fund various state services and programs. It's important to note that while some states have no income tax or only levy taxes on certain types of income, Utah does have a comprehensive income tax system in place.