State is only free in the Free Edition or Free File website. State is $40 in Online Deluxe and above. See the online prices here, Click on State Additional under the price
In the Desktop CD/Download program Deluxe and above you get one free state program download to prepare unlimited state returns. Then each state (including the first one) is $20 to efile.
Oh, if you want to have the fees deducted from your refund there is a $40 Pay with Refund Service charge. Or you can pay upfront with a credit or debit card to avoid the extra charge.