Remote-Work Tax Calculator
Which states tax your remote salary? Compare your home state and work state, flag reciprocity rules, and see an approximate tax + withholding split.
Narrative result
Same home & work state. Based on $90,000 in California, an estimated 68% stays in your pocket (~$60,823.325/yr).
Annual summary
How remote-work taxation works
Most remote workers are taxed in the state where they perform the work, but their home state taxes income regardless of where it's earned (since residents pay tax on worldwide income). If both rules apply, you may owe in both — but a credit for taxes paid to another state usually prevents double taxation. ~13 states have reciprocity agreements that simplify this, and 9 states have no income tax at all.
What affects your result
- Convenience-of-the-employer rule (e.g., New York) can tax non-residents working for in-state employers
- Reciprocity agreements exempt the work state for commuters (varies by state pair)
- 9 states have no income tax: AK, FL, NV, NH, SD, TN, TX, WA, WY
- Credit for taxes paid to another state generally prevents double taxation
- Part-year residency, moves, and local/city taxes (NYC, etc.) add complexity
Frequently asked questions
Which states have reciprocity agreements?
Common reciprocity pairs include DC, IL, IN, IA, KY, MD, MI, MT, NJ, OH, PA, VA, and WI. Agreements vary by pair and change over time, so confirm the specific two states with your employer or a tax pro.
What is the convenience-of-the-employer rule?
New York and a few other states tax non-residents who work remotely for an in-state employer, as if the work were performed in that state. This can create double taxation unless your home state gives a credit.
Do I pay tax in both states?
Sometimes. You may owe tax where you work and where you live. However, most states give a credit for taxes paid to another state, so you typically pay the higher of the two, not both in full.
What if my home state has no income tax?
Then you generally owe tax only in the state where you work (if it has income tax). This calculator handles that case. Use the US Paycheck Calculator for detailed take-home math.