Quick Answer
A nonresident state tax return is filed when you earned income in a state where you don't live. If you live in Ohio but work in Kentucky, you'd file a Kentucky nonresident return for your work income. About 4.9 million Americans work across state lines, with many required to file multiple state returns annually.
Best Answer
Sarah Chen, Payroll Tax Analyst
Remote workers who live in one state but work for companies in different states
What is a nonresident state tax return?
A nonresident state tax return is a tax filing you must submit to a state where you earned income but don't maintain permanent residence. Think of it as that state's way of collecting taxes on money you made within their borders, even though you call somewhere else home.
The key trigger is source of income, not where you live. If you live in Texas (no state income tax) but work remotely for a New York company, you may need to file a New York nonresident return if New York considers your income to be "New York source income."
Example: Remote worker earning $85,000
Let's say you live in Florida and work remotely for a California tech company earning $85,000 annually. Here's how it breaks down:
Key factors that determine nonresident filing requirements
State-by-state comparison of nonresident thresholds
What you should do
1. Track your work locations: Keep records of where you physically work each day
2. Understand your employer's state: Research whether they're in a "convenience rule" state
3. Monitor state withholding: Check your paystubs to see if any state taxes are being withheld
4. File by the deadline: Most states follow the federal April 15 deadline, but some differ
5. Use our paycheck calculator: Input your multi-state scenario to estimate your tax obligations
Key takeaway: If you earned income in a state where you don't live, you likely need to file a nonresident return in that state, especially if they withheld taxes from your pay or if you earned over their minimum threshold.
Key Takeaway: Remote workers often need to file nonresident returns in states where their employer is located, with potential tax liability even if they never physically worked there.
Nonresident filing thresholds by state
| State | Filing Threshold | Special Rules | Estimated Tax Rate |
|---|---|---|---|
| California | $1 of income | Strict sourcing rules | 1.0% - 13.3% |
| New York | $1 of income | Convenience rule | 4.0% - 10.9% |
| Pennsylvania | $33 of income | Some convenience rule | 3.07% flat |
| Illinois | $1,000 of income | Standard threshold | 4.95% flat |
| Texas | N/A | No state income tax | 0% |
More Perspectives
Sarah Chen, Payroll Tax Analyst
People who moved from one state to another during the tax year
Filing as a recent mover
When you move states during the tax year, you typically need to file three tax returns: federal, your old state (part-year resident), and your new state (part-year resident). But you might also need a nonresident return if you continued earning income in your old state after moving.
Example: Mid-year move with continued income
You moved from Illinois to Florida in June, but kept your Illinois job and worked remotely. Your $70,000 salary breaks down as:
Your filing requirements:
This is different from a simple move where you switch jobs. The continued income in your old state creates the nonresident filing requirement.
Key considerations for movers
Key takeaway: Moving states mid-year while keeping income sources in your old state creates both part-year resident and nonresident filing obligations.
Key Takeaway: Recent movers who continue earning income in their old state need to file both part-year resident returns and potentially nonresident returns.
Sarah Chen, Payroll Tax Analyst
People who work multiple jobs across different states
Managing multiple jobs across states
Having jobs in different states creates multiple nonresident filing obligations. Each state where you earn income generally wants their cut, regardless of where your other jobs are located.
Example: Three jobs, three states
You live in Nevada (no state income tax) but work:
Your filing requirements:
Estimated state taxes owed:
Strategies for multiple-job filers
Key takeaway: Multiple jobs across states require multiple nonresident returns, but living in a no-tax state eliminates the resident filing burden.
Key Takeaway: Workers with multiple jobs across states must file separate nonresident returns for each state where they earned income above that state's threshold.
Sources
- IRS Publication 17 — Your Federal Income Tax - includes state tax guidance
- Federation of Tax Administrators — State Income Tax Rates and Brackets
Related Questions
Reviewed by Sarah Chen, Payroll Tax Analyst on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.