Which States Can you Settle State Tax Debt?
- Stephen Wright
- Aug 1, 2024
- 1 min read
Updated: Sep 25, 2024

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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