Remote Work and State Taxes: What Employees Should Know

Working from home in a different state than your employer can create surprise tax bills.

Taxes
by PaycheckScope Admin

Remote work complicates state taxes. You generally owe income tax to the state where you live and work. If your employer is in another state, some states require withholding there too — creating potential double taxation.

Credits for taxes paid to other states often apply, but rules vary. Multi-state workers may need to file returns in more than one state.

When evaluating a remote offer, use your home state in PaycheckScope's calculator — not the employer's headquarters state — for accurate take-home estimates.