{"id":376380,"date":"2021-02-23T10:42:28","date_gmt":"2021-02-23T15:42:28","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/state\/tax-laws\/state-tax-implications-of-remote-working.html"},"modified":"2021-02-23T10:57:59","modified_gmt":"2021-02-23T15:57:59","slug":"state-tax-implications-of-remote-working","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/tax-laws\/state-tax-implications-of-remote-working.html","title":{"rendered":"State Tax Implications of Remote Working"},"content":{"rendered":"\n
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State Tax Implications of Remote Working<\/h1>\n
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\n By Maddy Teka, Esq.<\/a> | Legally reviewed by Bridget Molitor, JD<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

During the coronavirus pandemic, many companies required their employees to work from home. This, in some cases, allowed employees to avoid long commutes, and to potentially work from anywhere in the country. While remote working may be convenient for both the employee and the employer, it may raise some state income tax complications.<\/p>\r\n

What Is a State Income Tax?<\/h2>\r\n

A state income tax is a tax levied on income earned within each state and the District of Columbia. Unlike the federal income tax, state income tax varies from state to state.<\/p>\r\n

I Am Working Remotely in Another State. Should I Pay State Income Taxes in That State?<\/h2>\r\n

It depends on the laws of the state. Every state has its own rules on who is required to pay income taxes. A key question to ask is whether your state taxes resident taxpayers.<\/p>\r\n

Tax on Earned Income: "Resident" Taxpayers<\/h3>\r\n

Forty states and the District of Columbia tax \u201cresident" taxpayers on all of their income irrespective of where it is earned. To establish residence, most states look at either:<\/p>\r\n