The Covid-19 pandemic has disrupted many of our daily routines, often including how and where we work. For those telecommuting (working from home), tax implications can arise when the company you work for is located in a different state than your home. Each state has different rules for this situation, which we break down below. Click the state you live in to jump to that section.
Please Note: "Teleworker" is defined here as a person who lives in one state and works from home, but the company is located in a different state. This information applies to tax year 2020 only.
Alabama | Alaska | Arizona | Arkansas | California | Colorado | Connecticut | Delaware | District of Columbia | Georgia | Hawaii | Idaho | Illinois | Indiana | Iowa | Kentucky | Kansas | Louisiana | Maine | Maryland | Massachusetts | Michigan | Minnesota | Mississippi | Missouri | Montana | Nebraska | New Hampshire | New Jersey | New Mexico | New York | North Carolina | North Dakota | Ohio | Oklahoma | Oregon | Pennsylvania | Rhode Island | South Carolina | Tennessee | Utah | Vermont | Virginia | West Virginia | Wisconsin
Teleworkers residing in Alabama working for a company in another state due to COVID-19 will not be taxed in Alabama.
Alaska does not assess individual income tax.
Teleworkers residing in Arizona working for a company in another state due to COVID-19 will not be taxed in Arizona.
Teleworkers residing in Arkansas working for a company in another state due to COVID-19 will be taxed in Arkansas.
Teleworkers residing in California working for a company in another state due to COVID-19 will not be taxed in California.
Teleworkers residing in Colorado working for a company in another state will be taxed in Colorado.
Any resident who paid income tax to any other state that uses a convenience of the employer rule shall be allowed a credit against such resident's Connecticut income tax, for the tax paid to such other state on income earned by such resident while working remotely from this state for said taxable year, including while obligated by necessity to work remotely from this state.
No official guidance from Delaware.
Teleworkers residing in the District of Columbia working for a company in another state due to COVID-19 will not be taxed in the District of Columbia.
Teleworkers residing in Georgia working for a company in another state due to COVID-19 will not be taxed in Georgia.
No official guidance from Hawaii.
Teleworkers residing in Idaho working for a company in another state due to COVID-19 will be taxed in Idaho.
No official guidance from Illinois.
Teleworkers residing in Indiana working for a company in another state due to COVID-19 will not be taxed in Indiana.
Teleworkers residing in Iowa working for a company in another state due to COVID-19 will not be taxed in Iowa.
No official guidance from Kansas.
Teleworkers residing in Kentucky working for a company in another state due to COVID-19 will not be taxed in Kentucky if a reciprocal agreement already exists with that state.
Teleworkers residing in Louisiana working for a company in another state due to COVID-19 will not be taxed in Louisiana.
Teleworkers residing in Maine working for a company in another state due to COVID-19 will not be taxed in Maine.
Teleworkers residing in Maryland working for a company in another state due to COVID-19 will not be taxed in Maryland.
Teleworkers residing in Michigan working for a company in another state due to COVID-19 will be taxed in Michigan.
Teleworkers residing in Minnesota working for a company in another state due to COVID-19 will not be taxed in Minnesota.
Teleworkers residing in Mississippi working for a company in another state due to COVID-19 will not be taxed in Mississippi.
No official guidance from Missouri.
Teleworkers residing in Montana working for a company in another state due to COVID-19 will be taxed in Montana.
Teleworkers residing in Nebraska working for a company in another state due to COVID-19 will not be taxed in Nebraska.
No official guidance from Missouri.
Teleworkers residing in New Jersey working for a company in another state due to COVID-19 will not be taxed in New Jersey.
No official guidance from New Mexico.
No official guidance from New York.
North Carolina has not modified their existing laws; therefore, teleworkers or any other employees who perform services in North Carolina will be subject to North Carolina income tax.
Teleworkers residing in North Dakota working for a company in another state due to COVID-19 will not be taxed in North Dakota.
Teleworkers residing in Ohio working for a company in another state due to COVID-19 will be taxed in Ohio.
Teleworkers residing in Oklahoma working for a company in another state due to COVID-19 will not be taxed in Oklahoma.
Teleworkers residing in Oregon working for a company in another state due to COVID-19 will be taxed in Oregon.
Teleworkers residing in Pennsylvania working for a company in another state due to COVID-19 will not be taxed in Pennsylvania.
Teleworkers residing in Rhode Island working for a company in another state due to COVID-19 will be subject to RI income tax with a credit allowed for taxes paid to another state.
Teleworkers residing in South Carolina working for a company in another state due to COVID-19 will not be taxed in South Carolina.
No official guidance from Tennessee.
No official guidance from Utah.
Teleworkers residing in Vermont working for a company in another state due to COVID-19 will be taxed in Vermont.
Teleworkers residing in Virginia working for a company in another state due to COVID-19 will be taxed in Virginia.
No official guidance from West Virginia.
Teleworkers residing in Wisconsin working for a company in another state due to COVID-19 will not be taxed in Wisconsin.