Citizens pay state income taxes to buy collectively what they could never buy as individuals. An educated workforce attracts employers. Safety is a priority for everyone. We need people to license and inspect our food chain and warn of disease. As of 2009, all but nine states had an income tax to help pay for these things.

Education

States fund part or all of the education of their citizens. Public K through 12 education, community colleges and state colleges and universities are all funded in part through state revenues.

Police Protection and Public Safety

States fund police and criminal-justice programs, including prisons to keep people who attack or kill others or cause significant harm, from reoffending. States also have National Guard units that help other branches of the military, and help in local disasters or emergencies.

Health and Welfare Benefits

States track health concerns and trends, helping reduce the harmful effects of epidemics and food-poisoning outbreaks, and tracking them to their source. They set guidelines for food handling and immunization schedules. Health departments track infant development and provide early intervention to minimize or prevent developmental delays. Children, elderly and disabled adults are supported with food, support services and housing assistance.

Government Services

States provide highway building and maintenance, keeping roads and bridges repaired and free from hazards. Many states have parks and recreational facilities supported through state revenue.

Legal Services

Courts help settle disputes and try criminal cases. Legislatures make laws and organize how the state will run. The office of the attorney general regulates insurance and utilities to ensure consumer protection.

Source:

State and Local Taxes fact sheet