Remote Work Tax Analyzer
Find out which states can tax your remote work income. This tool analyzes physical presence rules, residency rules, and convenience of employer rules to help you understand your tax obligations.
Your Remote Work Situation
This is where you are physically located when you work, not where your employer is.
Required = Your employer has no office in your state. Convenience = You choose to work remotely.
Providing your salary helps estimate potential tax impact. This is optional.
Tax Analysis Results
You may owe income tax to multiple states: California and New York. This includes potential taxation under convenience of employer rules.
States That May Tax You
California
high confidenceReason: Residency
As a resident of California, you're taxed on all income regardless of where it's earned.
New York
medium confidenceReason: Convenience of employer rule
Because you work remotely for your convenience (not because your employer requires it), New York may tax your income even though you never work there.
Convenience of Employer Rule Risk
You may be subject to the convenience of employer rule, which can result in taxation by your employer's state even if you never work there. This rule is complex and fact-specific—consult with a tax professional.
Multiple State Tax Risk
You may owe taxes to multiple states. Most states offer tax credits to prevent double taxation, but you'll need to file returns in multiple states and claim the appropriate credits.
Next Steps
- •You may be able to claim tax credits to avoid double taxation. Most states offer credits for taxes paid to other states.
- •Update your W-4 form to ensure correct withholding for all applicable states.
- •Keep detailed records of where you physically work each day, especially if you work from multiple locations.
- •Consult with a tax professional about convenience of employer rules, as they can be complex and fact-specific.
- •You may need to file tax returns in multiple states. Most states offer credits to prevent double taxation.
- •This analysis is for educational purposes. Consult with a tax professional for advice specific to your situation.
Calculate Take-Home Pay
Disclaimer: This tool provides educational estimates based on general tax rules. State tax laws are complex and can change. The convenience of employer rule, reciprocity agreements, and residency rules vary by state and can be fact-specific. This analysis is not a substitute for professional tax advice. Consult with a qualified tax professional or CPA for advice specific to your situation. Tax data is based on 2026 rules and should be verified with official state revenue departments.
How remote work taxes work
Remote work can create complex tax situations because states have different rules about when they can tax your income.
- Physical presence rule: Most states tax income based on where you physically perform work. If you work from home in California for a New York company, California can tax that income.
- Residency rule: Many states tax residents on all income, regardless of where it's earned. If you're a California resident, you pay California taxes on all income.
- Convenience of employer rule: Some states (NY, CT, DE, NE, PA, AR, MA, NJ) can tax your income if you work remotely for your convenience, even if you never work in that state.
- Reciprocity agreements: Some states have agreements that allow residents to pay tax only to their home state, even if they work in another state.
The analyzer checks all these rules to determine which states may tax you. Consult with a tax professional for advice specific to your situation.
Frequently Asked Questions
States can tax your income based on where you physically work (physical presence), where you're a resident (residency), or under convenience of employer rules. The analyzer checks all three scenarios to determine which states may tax you.
Some states (like New York, Connecticut, Delaware, Nebraska, Pennsylvania, Arkansas, Massachusetts, and New Jersey) can tax your income if you work remotely for your convenience (not because your employer requires it), even if you never physically work in that state. This rule is complex and fact-specific.
It depends. Generally, you pay taxes to the state where you physically work. However, if you're a resident of a state with income tax, you typically pay taxes to your home state on all income. Some states also have convenience of employer rules that can complicate this.
Reciprocity agreements allow residents of one state to pay income tax only to their home state, even if they work in another state. Not all states have these agreements, and they can change over time.
Not necessarily. If you work remotely from a state with income tax, you'll typically owe taxes to that state. Additionally, convenience of employer rules can result in taxation by your employer's state even if you never work there. The analyzer helps identify all potential tax obligations.
Most states offer tax credits to prevent double taxation. You'll typically file returns in all applicable states and claim credits for taxes paid to other states. Keep detailed records of where you work each day, and consult with a tax professional for guidance specific to your situation.
Related Tools
- Take-Home Pay Calculator — Calculate your take-home pay for any state
- Remote Work Tax Guide — Comprehensive guide to remote work taxes
This tool provides educational estimates based on general tax rules. State tax laws are complex and can change. The convenience of employer rule, reciprocity agreements, and residency rules vary by state and can be fact-specific. This analysis is not a substitute for professional tax advice. Consult with a qualified tax professional or CPA for advice specific to your situation. Tax data is based on 2026 rules and should be verified with official state revenue departments.
For personalized advice, consult a qualified tax professional.