Income tax generally is computed as the product of a tax rate times taxable income. State and local taxes are generally deductible in computing federal taxable income. Capital gains&colon; and qualified dividends may be taxed as part of taxable income. These returns disclose a complete computation of taxable income under tax principles. State rules for determining taxable income often differ from federal rules. Federal marginal tax rates vary from 10% to 37% of taxable income. Capital tax is a tax charged on a corporation's taxable capital. The use tax applies to items taxable under the sales tax. Property tax is levied on the taxable value of real property. State and local income tax rates vary from 1% to 16% of taxable income. The U.S. imposes an alternative minimum tax based on an alternative measure of taxable income. The tax is generally around 0.7% of taxable income. The IRS established rules on ignoring alimony as a source of taxable income. There are limits on how much net capital loss may reduce other taxable income. Many states refer to some extent to federal concepts for determining taxable income.