The amount you owe in state income tax is based on: ahow long you have lived in the state. bthe value of your home. cyour yearly earnings. dhow much you spend each year.

The correct answer is C. The amount you owe in state income tax is based on your yearly earnings.

Explanation:

The income tax imposes on each taxpayer, whether an individual or a legal entity, to pay a certain percentage of their yearly income to the government, state or federal, depending on each jurisdiction. The calculation of the tax is based on the new wealth produced by the taxpayer, either due to labor, capital, or both, on which a percentage (rate) is applied.

This tax has as general guiding criteria, subjecting any taxpayer who obtains taxable income; universality, reaching any and all taxable income earned by the taxpayer; and progressivity, imposing higher rates for higher yields and vice versa, with usually a minimum income limit for the tax to be incurred.

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