You'll see something different if you selected a different state. In the US, there are two types of taxes: state and federal. Texas has no state income tax, but Texarkana has a tax since it's not entirely in Texas.
To be exempt from federal taxes, select "Exempt from withholding." Note: If you choose not to withhold anything, this applies only to federal taxes. You are responsible for paying your taxes based on your income bracket. Failure to do so may result in penalties.
