A) The tax paid to the federal government based on your income.
B) The tax that pays for healthcare for people ages 65 and older
C) The tax paid to the state government where you live or work based on your income.
D) The tax you pay to state or local government when purchasing an item.
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Home » Social Studies » What is state income tax? A) The tax paid to the federal government based on your income. B) The tax that pays for healthcare for people ages 65 and older C) The tax paid to the state government where you live or work based on your income.