Which State Do You Pay Taxes in if you are a Multiple State Resident?

You'll pay property taxes in the state and county where a residence is located, regardless of whether you live there full time or not. If you own houses in both California and Arkansas, for instance, you'll pay California real estate taxes on one and Arkansas taxes on the other. If you rent in one state, the rental will cover those for you. Real estate taxes usually are assessed and collected by a county, under state laws.

Income taxes vary by state and some states, like Florida, Texas and Washington, have no income tax. Generally, however, you will be taxed on all income earned in a state. If you earn money in both states where you live part-time, you generally will pay taxes on the portion of income earned in each state. In some states, you may be required to report all income, but will be given credit for that earned or taxed in another state.

Part-time residents must follow the rules of each state, but this can be very complicated. You may, for instance, earn income in one state while living in the second state. Or you may get income from the second state while living in the first. You may have to work out an apportionment percentage, depending on how much time you spend in each state, to divide the income

You must check each state's laws on what constitutes a resident. New York, for instance, defines a resident as someone who lives there more than 183 days, about six months. However, California says you must file an income tax return if you would owe $1 or more in tax, depending on your income. California and other states impose a non-resident tax on income earned in the state by people who are not fulltime residents.

You should check the specific regulations and laws for each state in which you live part-time, whether it is just during a relocation or permanent. Online tax preparation companies usually provide information for every state on whether you need to file an income tax return and how to report your income.