state tax

noun [C or U] GOVERNMENT, TAX

Definition

› in the US, a tax that you pay to the government of a state rather than to the national government: a state tax on sth There currently are no state taxes on gambling. Alabama residents paid on average $89 more in state taxes last year than their neighbors to the north. The cuts come because of a weak economy and a subsequent decline in state tax collections. → Compare federal tax

› a tax that you pay to the government: a state tax on sth The tax minister said there would be no cut in state taxes on diesel fuel.

(Definition of state tax noun from the Cambridge Business English Dictionary © Cambridge University Press)

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