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    Multi-State Income Allocation Framework (2026)

    If you earn income in more than one state — or work remotely for an employer in a different state — you need to know where each state claims the right to tax your income. This reference covers sourcing rules, the convenience-of-employer doctrine, residency tests, and credit availability for all 50 states + DC.

    Guidance, not advice. This calculator runs the rules as published, it doesn't assess your circumstances. Your actual tax may be affected by factors it doesn't cover (deductions, credits, filing status nuances, state-specific adjustments). Always seek financial or tax advice from a qualified CPA, Enrolled Agent, or tax attorney, or contact the IRS. Read our editorial scope →

    TaxKiln framework

    Multi-State Income Sourcing Grid

    TaxKiln's per-state reference framework for multi-state income allocation: sourcing-rule classification (where-performed vs market-based), convenience-of-employer doctrine identification (NY, CT, PA, NE, DE), 183-day statutory residency mapping, resident-credit availability, and reciprocity agreement coverage — presented as an editorial reference rather than an automated calculator because multi-state allocation is too fact-specific and state-law-variable for deterministic computation.

    Editorial framework — not an automated calculator
    Multi-state income allocation is too complex and state-specific for automated calculation. This page presents a searchable reference of per-state rules so you and your CPA can identify which jurisdictions apply to your specific fact pattern.

    Convenience-of-Employer States

    These five states tax non-resident employees as if they worked in the employer's state — even when working remotely from another state — unless the remote work is for the employer's necessity (not the employee's convenience).

    Connecticut

    CT

    Delaware

    DE

    Nebraska

    NE

    New York

    NY

    Pennsylvania

    PA

    Impact on remote workers: If you live in Florida (no income tax) but work remotely for a New York employer from your Florida home, New York will still tax your wages unless your employer requires you to work from Florida for its business necessity. This was affirmed in Huckaby v. New York State Division of Tax Appeals (2005).

    The same applies to Connecticut, Pennsylvania, Nebraska, and Delaware — though reciprocity agreements may reduce or eliminate the double-taxation impact in some cases.

    California: No 183-Day Rule

    Unlike nearly every other state, California does not use a statutory 183-day counting rule for residency.

    No statutory 183-day rule. California uses the 'temporary or transitory purpose' test under R&TC §17014. A stay of 9+ months creates a rebuttable presumption of residency; stays under 6 months are presumed non-resident.

    Practical implications:

    • A stay of 9 months or more creates a rebuttable presumption that you are a California resident.
    • A stay of under 6 months creates a rebuttable presumption of non-residency.
    • The 6-to-9-month gray zone requires analysis of your domicile, permanent home, and the purpose of your stay.
    • California's Franchise Tax Board aggressively audits multi-state workers — maintain detailed travel logs with receipts.

    California aggressively audits multi-state workers. Maintain detailed travel logs.

    Days counting for the 6-month presumption must be full 24-hour periods within CA.

    183-Day Statutory Residency States

    50 of 51 jurisdictions (50 states + DC) use a statutory 183-day rule. The exception is California.

    AL
    AK
    AZ
    AR
    CO
    CT
    DE
    DC
    FL
    GA
    HI
    ID
    IL
    IN
    IA
    KS
    KY
    LA
    ME
    MD
    MA
    MI
    MN
    MS
    MO
    MT
    NE
    NV
    NH
    NJ
    NM
    NY
    NC
    ND
    OH
    OK
    OR
    PA
    RI
    SC
    SD
    TN
    TX
    UT
    VT
    VA
    WA
    WV
    WI
    WY

    Most states count any part of a day as a full day for residency purposes. Some (e.g. New York) use a 184-day threshold. Check each state's specific counting rules if you are close to the threshold.

    Resident Credit for Taxes Paid

    51 jurisdictions provide a credit for income taxes paid to other states.

    When you are taxed as a resident of one state on income that was also taxed by another state, your resident state typically offers a credit to prevent double taxation. The credit is usually limited to the lesser of: (a) the tax you actually paid to the other state, or (b) the tax your resident state would have charged on that same income.

    Important: Credits do not apply between convenience-of-employer states and the state where you physically work if both states claim the same income. In that scenario, you may need to file in both states and claim the credit on your resident return — but some states (notably NY) may still assert primary taxing rights.

    Reciprocity Agreements

    23 jurisdictions have reciprocity agreements with neighboring states.

    Reciprocity agreements allow residents of one state to work in a neighboring state without having to file a non-resident return in the work state. Instead, the worker only files in their state of residence. Common examples:

    • DC ↔ MD ↔ VA: Tri-state reciprocity means most commuters only file in their home state.
    • IL ↔ IA, KY, MI, WI: Midwestern reciprocity bloc.
    • NJ ↔ PA: One of the most heavily used reciprocal agreements in the US.

    Per-State Rules Reference

    Searchable table of sourcing rules, residency tests, credits, and reciprocity for all 50 states + DC.

    StateSourcingCOE Rule183-DayCreditRecip.Notes
    Alabama (AL)
    Where performed
    		—NoYesYes—No

    Credit for tax on doubly-taxed income; no carryover.

    Alaska (AK)
    Where performed
    		—NoYesYes—No

    No state income tax, but local jurisdictions may impose taxes.

    Arizona (AZ)
    Where performed
    		—NoYesYesYes

    Credit limited to Arizona tax on same income. Refundable if credit exceeds liability.

    Reciprocity with California, Indiana, Oregon, and Virginia.

    Arkansas (AR)
    Where performed
    		—NoYesYes—No

    Credit for tax actually paid to another state on doubly-taxed income.

    California (CA)
    Where performed
    		—No—NoYes—No

    No statutory 183-day rule. California uses the 'temporary or transitory purpose' test under R&TC §17014. A stay of 9+ months creates a rebuttable presumption of residency; stays under 6 months are presumed non-resident.

    Credit for tax paid to another state on doubly-taxed income, limited to CA tax on that income. No credit for tax paid to foreign countries (use federal FTC instead).

    California aggressively audits multi-state workers. Maintain detailed travel logs.

    Days counting for the 6-month presumption must be full 24-hour periods within CA.

    Colorado (CO)
    Where performed
    		—NoYesYes—No

    Credit limited to Colorado tax on doubly-taxed income.

    Connecticut (CT)
    Where performed
    		YesYesYes—No

    Credit for tax paid to another state on doubly-taxed income, but convenience-of-employer sourcing may override.

    Convenience-of-employer rule applies: non-residents working remotely for a CT employer are taxed as if working in CT unless the remote work is for the employer's necessity.

    Senate Bill 351 (2023) codified the convenience rule into statute.

    Delaware (DE)
    Where performed
    		YesYesYesYes

    Credit for tax paid to another state, subject to limitations. Reciprocity agreements simplify withholding for covered residents.

    Reciprocity with Maryland, Pennsylvania, New Jersey, Virginia, West Virginia, Ohio, Indiana, Kentucky, Michigan, Wisconsin, Illinois, Iowa, Missouri, Nebraska, North Dakota, Montana, and Washington DC.

    Convenience-of-employer rule applies to non-residents working for DE employers.

    Delaware is one of the few states that taxes S-corp income at the entity level (8.7%).

    District of Columbia (DC)
    Where performed
    		—NoYesYesYes

    Credit for tax paid to another state on doubly-taxed income.

    Reciprocity with Maryland and Virginia for residents working in DC.

    DC's reciprocity with MD and VA means most commuters do not need to file DC returns.

    Florida (FL)
    Where performed
    		—NoYesYes—No

    No state income tax. Nexus for corporate/franchise tax purposes still matters.

    Georgia (GA)
    Where performed
    		—NoYesYes—No

    Credit limited to Georgia tax on doubly-taxed income. No carryforward or carryback.

    Hawaii (HI)
    Where performed
    		—NoYesYes—No

    Credit for tax paid to another state on doubly-taxed income.

    Hawaii taxes non-residents on Hawaii-sourced income only.

    Idaho (ID)
    Where performed
    		—NoYesYesYes

    Credit limited to Idaho tax on doubly-taxed income.

    Reciprocity with Oregon, Utah, and Wyoming for certain border residents.

    Illinois (IL)
    Where performed
    		—NoYesYesYes

    Credit for tax paid to another state on doubly-taxed income.

    Reciprocity with Iowa, Kentucky, Michigan, and Wisconsin.

    Illinois has a flat 4.95% individual income tax rate.

    Indiana (IN)
    Where performed
    		—NoYesYesYes

    Credit limited to Indiana tax on doubly-taxed income.

    Reciprocity with Illinois, Kentucky, Michigan, Ohio, Pennsylvania, and Wisconsin.

    Iowa (IA)
    Where performed
    		—NoYesYesYes

    Credit for tax paid to another state on doubly-taxed income.

    Reciprocity with Illinois.

    Kansas (KS)
    Where performed
    		—NoYesYes—No

    Credit limited to Kansas tax on doubly-taxed income.

    Kentucky (KY)
    Where performed
    		—NoYesYesYes

    Credit for tax paid to another state on doubly-taxed income.

    Reciprocity with Illinois, Indiana, Michigan, Ohio, Virginia, West Virginia, and Wisconsin.

    Louisiana (LA)
    Where performed
    		—NoYesYes—No

    Credit limited to Louisiana tax on doubly-taxed income.

    Maine (ME)
    Where performed
    		—NoYesYes—No

    Credit for tax paid to another state on doubly-taxed income.

    Maryland (MD)
    Where performed
    		—NoYesYesYes

    Credit limited to Maryland tax on doubly-taxed income. County income taxes are non-creditable.

    Reciprocity with DC, Pennsylvania, Virginia, and West Virginia.

    Massachusetts (MA)
    Where performed
    		—NoYesYes—No

    Credit limited to Massachusetts tax on doubly-taxed income. Only income taxes qualify, not sales or excise taxes.

    Massachusetts has a flat 5% tax rate plus a 4% surtax on income over $1M (voters approved in 2022).

    Michigan (MI)
    Where performed
    		—NoYesYesYes

    Credit for tax paid to another state on doubly-taxed income.

    Reciprocity with Illinois, Indiana, Kentucky, Minnesota, Ohio, and Wisconsin.

    Minnesota (MN)
    Where performed
    		—NoYesYesYes

    Credit limited to Minnesota tax on doubly-taxed income.

    Reciprocity with Michigan and North Dakota.

    Mississippi (MS)
    Where performed
    		—NoYesYes—No

    Credit limited to Mississippi tax on doubly-taxed income.

    Missouri (MO)
    Where performed
    		—NoYesYesYes

    Credit for tax paid to another state on doubly-taxed income.

    Reciprocity with Illinois and Kansas for certain border counties.

    Montana (MT)
    Where performed
    		—NoYesYesYes

    Credit limited to Montana tax on doubly-taxed income.

    Reciprocity with North Dakota.

    Nebraska (NE)
    Where performed
    		YesYesYesYes

    Credit limited to Nebraska tax on doubly-taxed income.

    Reciprocity with Iowa.

    Convenience-of-employer rule applies: non-residents working remotely for a NE employer are taxed as if working in NE unless the remote work is for the employer's necessity.

    Nevada (NV)
    Where performed
    		—NoYesYes—No

    No state income tax. No individual income tax filing required.

    New Hampshire (NH)
    Where performed
    		—NoYesYes—No

    No wage income tax, but 3% tax on interest and dividends (being phased out; fully repealed after 2026).

    New Jersey (NJ)
    Where performed
    		—NoYesYesYes

    Credit for tax paid to another state on doubly-taxed income.

    Reciprocity with Pennsylvania (under the reciprocal agreement, residents of one state working in the other only file in their state of residence).

    NJ-Pennsylvania reciprocity means most cross-border commuters only file in their home state.

    New Mexico (NM)
    Where performed
    		—NoYesYes—No

    Credit limited to New Mexico tax on doubly-taxed income.

    New York (NY)
    Where performed
    		YesYesYes—No

    Credit for tax paid to another state on doubly-taxed income, but convenience-of-employer sourcing may mean NY claims the income anyway.

    Convenience-of-employer rule applies: non-residents working remotely for a NY employer are taxed in NY unless the remote work is for the employer's necessity (not the employee's convenience).

    This was affirmed in Huckaby v. New York State Division of Tax Appeals (2005).

    New York also has a 184-day rule for statutory residency (one day more than most states).

    NYC imposes an additional city income tax on NYC residents and non-residents working in NYC.

    North Carolina (NC)
    Where performed
    		—NoYesYes—No

    Credit limited to North Carolina tax on doubly-taxed income.

    North Dakota (ND)
    Where performed
    		—NoYesYesYes

    Credit limited to North Dakota tax on doubly-taxed income.

    Reciprocity with Minnesota and Montana.

    Ohio (OH)
    Where performed
    		—NoYesYesYes

    Credit for tax paid to another state on doubly-taxed income.

    Reciprocity with Indiana, Kentucky, Michigan, Pennsylvania, and West Virginia.

    Ohio has municipal income taxes that may apply independently of state rules.

    Oklahoma (OK)
    Where performed
    		—NoYesYes—No

    Credit limited to Oklahoma tax on doubly-taxed income.

    Oregon (OR)
    Where performed
    		—NoYesYesYes

    Credit limited to Oregon tax on doubly-taxed income.

    Reciprocity with Idaho for certain border residents.

    Oregon does not tax Social Security benefits.

    Pennsylvania (PA)
    Where performed
    		YesYesYesYes

    Credit for tax paid to another state on doubly-taxed income, but convenience-of-employer sourcing may override.

    Reciprocity with Indiana, Maryland, New Jersey, Ohio, Virginia, and West Virginia.

    Convenience-of-employer rule applies: non-residents working remotely for a PA employer are taxed in PA unless the remote work is for the employer's necessity.

    Pennsylvania's flat 3.07% personal income tax rate applies to all classes of income.

    Rhode Island (RI)
    Where performed
    		—NoYesYes—No

    Credit limited to Rhode Island tax on doubly-taxed income.

    South Carolina (SC)
    Where performed
    		—NoYesYes—No

    Credit limited to South Carolina tax on doubly-taxed income.

    South Dakota (SD)
    Where performed
    		—NoYesYes—No

    No state income tax. No individual income tax filing required.

    Tennessee (TN)
    Where performed
    		—NoYesYes—No

    No wage income tax. Hall income tax on interest and dividends fully repealed as of 2021.

    Texas (TX)
    Where performed
    		—NoYesYes—No

    No state income tax. Franchise tax may apply to businesses.

    Utah (UT)
    Where performed
    		—NoYesYesYes

    Credit limited to Utah tax on doubly-taxed income.

    Reciprocity with Idaho for certain border residents.

    Vermont (VT)
    Where performed
    		—NoYesYes—No

    Credit for tax paid to another state on doubly-taxed income.

    Virginia (VA)
    Where performed
    		—NoYesYesYes

    Credit limited to Virginia tax on doubly-taxed income.

    Reciprocity with DC, Kentucky, Maryland, Pennsylvania, and West Virginia.

    Washington (WA)
    Market-based
    		—NoYesYes—No

    No state income tax on individuals, but a 7% capital gains excise tax on long-term gains over $250K applies to individuals.

    Services sourcing uses market-based (customer location) rule.

    West Virginia (WV)
    Where performed
    		—NoYesYesYes

    Credit for tax paid to another state on doubly-taxed income.

    Reciprocity with Kentucky, Maryland, Ohio, Pennsylvania, and Virginia.

    Wisconsin (WI)
    Where performed
    		—NoYesYesYes

    Credit limited to Wisconsin tax on doubly-taxed income.

    Reciprocity with Illinois, Indiana, Kentucky, and Michigan.

    Wyoming (WY)
    Where performed
    		—NoYesYes—No

    No state income tax. No individual income tax filing required.

    Get professional help
    Multi-state tax allocation is complex and fact-specific. Consult a CPA experienced in multi-state taxation, especially if you work in a convenience-of-employer state (NY, CT, PA, NE, DE) or split your time across multiple jurisdictions. The cost of professional advice is far less than the cost of an audit, penalties, and interest.