The purpose of this study is to examine the impacts of state income taxes on returns to investments in forest management on private nonindustrial (PNIF) lands. It contains a review of major federal income tax provisions which directly affect timber investments. Income tax laws are described for individuals in the 50 states, with emphasis on those directly applicable to forestry. Two separate analyses are performed to examine the combined effects of federal and state income taxes on typical nonindustrial private forestry investments. In the first, the combined federal-state income tax liability is computed for hypothetical PNIF owners in the year of a timber sale. State income taxes for medium income landowners who manage their forest range from 4 percent of the total tax liability in Louisiana to 40 percent in Wisconsin. In the second analysis, after-tax returns are computed for a hypothetical forest management investment. The net present value of the investment for a landowner in the 33 percent federal and 10 percent state marginal tax brackets, ranges from $479 per acre in Wisconsin to $551 per acre in Oregon. The results show that provisions for long-term capital gains treatment, amortization of reforestation costs, and the deduction of annual operating expenses can be an effective means for reducing the impacts of federal and state income taxes on PNIF investment returns. North Carolina, California, and Oregon have special provisions for reporting forestry management cash flows which help reduce state taxes. It is important for investors to keep complete and accurate records in order to take full advantage of federal and state tax saving provisions. / Master of Science