Add up your income exemptions. List, with dollar amounts, the personal exemption for your filing status, dependent exemptions, elderly exemptions and any additional exemptions in your state. Total the dollar amounts.

Add up your income deductions. List, with dollar amounts, either a standard deduction or itemized deductions. Add to the list any additional state deductions. Total the income deductions.

Total your income. Begin with your total wages, salary and tips from your W-2 Form. Add additional income you gained from pensions, taxable retirement plan distributions and annuities. Take a step to add income from interest, dividends and other gains from investments that count toward total income. Then, figure in the income or loss from business and rentals. Last, include in your total any amounts received for unemployment compensation and other amounts your state counts as income.

Find the adjusted gross income by subtracting total deductions from total income.

Find the taxable income by subtracting total exemptions from adjusted gross income.

Sum the total income tax. Look up your tax in the state's income tax table or multiply the amount by the state's tax rate. Add any other tax for your state.

Reduce the tax by the amounts withheld and any estimated tax payments. Use the amount of state tax withheld on Form W-2 to reduce the tax amount. If you made estimated tax payments during the tax year, subtract the total payments from the tax. You have found your adjusted tax.

Add up credits and tax exemptions. Add up the state's tax credits. Add up the state's tax exemptions, such as a personal exemption credit. Total the credits and exemptions

Calculate your tax by subtracting the total credits and tax exemptions from the adjusted tax.You now have your state income tax for the year.

Calculate your state's use tax using the state's tax rate. States assess use tax in addition to income tax.