Which tax is typically assessed at the state level?

State income tax is typically assessed at the state level because it is a tax on individuals' earnings imposed by the state government. Each state establishes its own tax rates and regulations regarding income tax. This tax is administered by the state's department of revenue or equivalent agency, and the revenue generated from it is often used to fund state programs and services such as education, transportation, and healthcare.

In contrast, local business taxes and municipal revenue taxes are imposed by local governments, such as cities or counties, and not by the state. An estate tax can vary; some states impose their own estate tax, while others do not, making it less consistently categorized as a state-level tax compared to state income tax. Thus, the clear distinction of state income tax being a regular, systematic means for states to collect revenue further supports why it stands out in this context.