Tax Blog
Sales tax is what they add on when you purchase something, I think. What is state tax and what kind of tax do they take out of your paycheck? I’m 19 and finally getting out on my own and need to know everything. HELP! (I live in Oklahoma and am moving to Texas for those that want to know a state)
OOH and federal taxes?
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Tax Questions & Answers
Sales tax is assessed on certain purchases, each state’s rules are different as to what is taxable and what is exempt. Texas’s state tax is 6.25%, and then the local governments can add up to an additional 2% for a total of 8.25%. Most food purchased at a grocery store is exempt, except soda and snacks. Everything else is pretty much taxable.
There is no state income tax in Texas, so an employer won’t take that out of your check.
Federal taxes include 6.2% Social Security, 1.45% medicare, and then income tax. The income tax is a percentage based on how much you make and your taxable income. The rates go from 10% to 35%, but you get an exemption and deduction from gross earnings, so the actual rate ends up being a blend of the rate and the deductions. For example, in 2007, you could have earned up to $8750 and not have to pay any federal income tax, if no one claims you as a dependent. The next $7,825 in earnings is taxed at 10%, and then it goes from there