I work in Multiple States Remotely. Do I pay Taxes in ALL States?

Updated: 03/07/2023

Full Year Residents, Part Year Residents and figuring the Apportionment Percentage

Resident State:

You are generally considered a resident of a state based upon the last day of the year. In most states, residents pay tax on the income (from all sources) they received during the calendar year. Residents typically get a tax credit for taxes paid to any other state. 

Part-Year Residents:

If you moved to a different State during the year, you are considered a part-Year Resident of that State. Part-year residents follow each state's rules. Some states separate the income, and tax only their state's income. Or a state may calculate the tax on all of the income as if you were a resident, and then allocate the tax based on in state sources as a percentage of all sources. 

How to figure the Apportionment Percentage:

Regardless of whether you're a part-year resident or a nonresident in the state where you are working, you will probably need to complete an apportionment schedule if you have income in more than one state. This form can usually be found in the state's part-year or nonresident income tax return. You use the schedule to "apportion" how much of your income is taxable in each state.

• Part-year residents not only pay tax on income earned from work performed in the state, but also pay tax on all other income received while residing in the state.

• Nonresidents generally only pay tax on income they earned from work performed in the state, and on income received from other sources within the state.

Fortunately, in most cases your resident state allows you to take a credit for the taxes you have to pay to the other state, as in a temporary residence situation. Check your state tax website for information on whether your state offers this credit. 

Taxes by State

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