Remote Work State Tax Calculator (2026)
Living in one state and working for a company in another is common now, and the tax rules are confusing. Pick where you live, where your employer or office is, and how many workdays you are physically there. The calculator shows which state taxes what, the credit you get, and your estimated total state tax.
The basic rules
- Your home state taxes all your income, wherever you earn it.
- The state where you physically work can tax the wages for days you work there.
- Credit: your home state usually gives a credit for tax paid to the other state, so you are not taxed twice in full. The credit is limited to what your home state would charge on that income.
- No-tax states: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming do not tax wages.
Reciprocal agreements
Some neighboring states agree that you only pay tax where you live. You give your employer an exemption form so it withholds for your home state only.
| State | Has reciprocity with |
|---|---|
| Illinois | Iowa, Kentucky, Michigan, Wisconsin |
| Indiana | Kentucky, Michigan, Ohio, Pennsylvania, Wisconsin |
| Iowa | Illinois |
| Kentucky | Illinois, Indiana, Michigan, Ohio, Virginia, West Virginia, Wisconsin |
| Maryland | Washington, D.C., Pennsylvania, Virginia, West Virginia |
| Michigan | Illinois, Indiana, Kentucky, Minnesota, Ohio, Wisconsin |
| Minnesota | Michigan, North Dakota |
| Montana | North Dakota |
| New Jersey | Pennsylvania |
| North Dakota | Minnesota, Montana |
| Ohio | Indiana, Kentucky, Michigan, Pennsylvania, West Virginia |
| Pennsylvania | Indiana, Maryland, New Jersey, Ohio, Virginia, West Virginia |
| Virginia | Washington, D.C., Kentucky, Maryland, Pennsylvania, West Virginia |
| West Virginia | Kentucky, Maryland, Ohio, Pennsylvania, Virginia |
| Wisconsin | Illinois, Indiana, Kentucky, Michigan |
Washington, D.C. does not tax people who live outside D.C. New York, New Jersey (except with Pennsylvania), Connecticut, Massachusetts and California have no reciprocal agreements.
The convenience-of-the-employer rule
New York, Delaware, Nebraska and Pennsylvania treat days you work from home for your own convenience as days worked at the employer's office in their state. Connecticut and New Jersey apply a similar rule to residents of states that do this to them. So a New Jersey resident working fully remote for a New York company can still owe New York tax on all of their wages, and then gets a credit from New Jersey. Alabama and Oregon are also listed as using similar rules in some cases.
Examples ($100,000 or as noted, single)
| Situation | Tax to other state | Total state tax | Extra vs one state |
|---|---|---|---|
| Live in New Jersey, NY employer, 100% remote | $4,860 | $4,860 | $680 |
| Live in Connecticut, NY employer, 1 day a week in office ($120,000) | $6,040 | $6,640 | $90 |
| Live in Texas, NY employer, 1 day a week in office | $4,860 | $4,860 | $4,860 |
| Live in Pennsylvania, work in New Jersey office ($80,000) | $0 | $2,456 | $0 |
| Live in Florida, California employer, 10% of days in CA ($90,000) | $412 | $412 | $412 |
How this calculator works
It figures your home state tax on all your wages with our 2026 state tax engine. If the employer's state can tax you, it takes that state's tax on your full wages times the share of days it can tax (all days under a convenience rule if remote work is your choice). Your home state credit is the smaller of that amount or your home state tax on the same share. This is a simplified estimate: it does not include city taxes, special allocation rules, bona fide home-office exceptions or part-year moves. Check with a tax professional for your situation.
FAQ
Do I pay taxes in two states if I work remotely?
Sometimes. Your home state always taxes you. The employer's state can also tax you for days you work there, and a few states tax remote days too. Your home state usually gives a credit.
I live in New Jersey and work remotely for a New York company. What do I owe?
Under New York's convenience rule, New York can tax your wages for days you work from home by choice. New Jersey then gives a credit for the New York tax.
What is a reciprocal agreement?
A deal between two states that lets residents of one work in the other and pay income tax only to their home state.
Does my employer's state matter if I never go there?
Usually not, unless that state has a convenience-of-the-employer rule like New York, Delaware, Nebraska or Pennsylvania.
Does this include city taxes?
No. Use the city income tax calculator for New York City, Philadelphia, Detroit and Ohio cities.
Rules and rates last checked: October 2026. This is an estimate for general information only, not financial, tax or legal advice. Check IRS.gov or a tax professional before you file.