State Tax 

State Tax is a tax levied by individual state governments on businesses and residents operating within their jurisdiction. It’s separate from federal or national taxes and varies widely by region. In business, state taxes might include: 

• Corporate income tax 

• Sales tax 

• Property tax 

• Franchise tax 

• Payroll tax 

For businesses operating in multiple states or territories, understanding state tax nexus (the minimum level of activity triggering tax obligations in a state) is crucial to remain compliant.