Do You Pay State Income Taxes Based on Where You Lived or Where Your Income Was Earned?

Both federal and state income tax returns are due by April 15 each year.

Both federal and state income tax returns are due by April 15 each year.

In addition to filing a federal tax return, taxpayers in 41 of the 50 states are also required to file a state income tax return each year. The nine states that do not have a state income tax are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Washington. However, if you live in one of those states but work elsewhere, you may not be entirely free of the state tax burden.

State Income Tax

Individuals living in one state but earning income in another are required to file a state income tax return not only in their home state but also in the state where the income was earned, depending on each state's laws. If a taxpayer has to file a state return in two states and is taxed twice, the home state generally will credit the amount of tax paid in the non-resident state. Some states have reciprocal agreements with neighboring states to avoid double taxation and allow workers to file state income tax returns only in their home state.

About the Author

Based in Lake Mary, Fla., Charity Tober writes mainly on finance, career, interior decorating, parenting and weddings. Tober has also self-published two children's picture books. She holds a Bachelor of Arts in business administration from the University of Florida.

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