Is state tax taken out of my paycheck?

Yes, if you work in a state with an income tax. Your employer withholds it from each paycheck along with federal tax, using the state's own rates and, in many states, its own withholding form. In the nine states without a tax on wages, no state income tax comes out.

Amounts vary a lot. Illinois has a flat 4.95% rate, so a single filer earning $60,000 and paid every two weeks has $108.66 withheld per check. Some states add payroll programs, like California's 1.3% State Disability Insurance. Some cities, such as New York City and Philadelphia, add a local income tax.

Pick your state on the states page to see its rates, or check the list of states with no income tax. The state version of the W-4 is covered under withholding allowance.