View Full Version : Paying state tax

02-12-2014, 03:42 PM
I wonder how many of you actually live in your state hut work in a different state. I do work in a different state because that's where my dad's business locates. I don't mind the driving, which only takes about 20 to 25 minutes to get the my dad's workplace. I would like to know do you pay more tax when you work in a different state than the one in which you reside? I do pay more tax, which is the state tax because I work in a different state.

02-13-2014, 08:51 AM
Ugh. That sounds like a real hassle for tax time. I've not heard about the tax difference between states---I assume you pay income tax to the state automatically through your dad's business filings, so what else do you pay? Declarations aside, do you pay sales tax differently?

02-26-2014, 09:01 AM
Yes, this does sound like a headache waiting to happen. I think the laws vary depending on which states are involved. Some states are much harsher, but I would assume you would end up paying more than if you just worked in the state you lived in.

02-26-2014, 01:54 PM
Yikes, I've never thought about these types of issues, but I can only imagine that the whole tax thing will be stressful. You may want to think about talking to an accountant or at least a tax return professional to help ensure that you don't end up paying double taxes.

02-27-2014, 06:45 PM
I am pretty sure you pay state tax for where you work and not where you reside. Income tax time for you must be fun!

02-28-2014, 02:15 AM
When I was still employed I used to do the same, work in one state while living in another. But here the income laws are different, more unified, and I payed the same amount no matter where I worked. In the end, it's all about how states are allowed to govern themselves. If the way tax is applied in one state is different than the other I can understand why you're taxed differently for living someplace else than the state you work in.

Still, I have to agree with the others here, seems a hassle when it's time to pay your dues!

05-30-2014, 02:53 PM
it really depends on the tax laws for the two states in question. generally speaking, you are required to pay taxes in the place you and live and in the place you work. same applies to any city or municipal taxes. i live in a state where they will give you a credit for taxes paid in another state. there are also states that do not have income taxes. check to see if any of this applies to the state you live in.

08-05-2014, 05:39 PM
It all depends on the states. You may pay tax to one state or both. Often border states have special rules based on an agreement between the two states. For example, Virginia and Maryland have an agreement that if you live in one and work in the other, you only pay tax to the state you live in. If you have to pay tax to both states, some times the state you live in will give you a credit against your tax for the tax you paid to the other state. This may or may not completely eliminate the double state tax.