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If you happen to owe state tax debt and have been approved for an offer with the IRS. You may be able to also settle the state tax debt. Below is a chart of all the states we found that offer a settlement (offer in compromise at the state level). Keep in mind some states may not officially have an OIC but they may have what is called a closing agreement or closing settlement. It is always best to ask the state or hire a tax professional for assistance. States listed in black, we could not confirm if they did or did not offer a way to settle the tax debt. The states which do not have a state income tax are not listed. You can read our blog post here Part 1 to learn more about which states do not have a state income tax Part 2. In total there are 9 states with in income tax.
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