Where do you pay taxes if you live in two states?
You'll likely file a part-year resident return in both states. Usually, you'll have to file a state return in any states that you: Have earned income from wages or self-employment. Have property that produces income.
For the year of your move, you'll file a part-year resident tax return in each state you lived in. However you won't have to pay double the state tax. Each state taxes the income that was earned in that particular state, but most states don't tax the income earned in the other state.
Individuals are taxed in the state in which they have a domicile (a permanent home base, in other words). That state is the one in which you will pay income taxes (if it all). If you are temporarily traveling to another state for an event or a vacation, you usually do not pay income taxes in that state.
If your work state and home state do not have reciprocity, you should expect to file two state tax returns: one as a resident for the state where you are living, and one as a nonresident for the state where you work. Being a nonresident means you have not lived in a state where you earn income for any part of the year.
Dual residency can put you in a position where you have to pay taxes to two (or even more) states. Here are examples of how this can happen: You live in one state but work (virtually or not) in another. You have homes in two states.
Dual state residency can be established if you are a statutory resident of another state. In this case, you're considered a statutory resident if you maintain a permanent place of residence in that state or spend more than 183 days in that state.
The 183-day rule refers to a threshold used by most countries to determine whether an individual should be considered a resident for tax purposes. This number is often used in a tax context because it marks the point at which someone has spent more than half the calendar year in a particular jurisdiction.
Because you pay taxes on what you earned in the temporary state in addition to what you pay to your resident state. Does this sound like double taxation? It is. But, most states usually allow a credit on your home-state tax return for the taxes you paid to the other (nonresident) state.
Legally, you can have multiple residences in multiple states, but only one domicile. You must be physically in the same state as your domicile for most of the year and able to prove the domicile is your principal residence, “true home” or “place you return to.”
You will be presumed to be a California resident for any taxable year in which you spend more than nine months in this state. Although you may have connections with another state, if your stay in California is for other than a temporary or transitory purpose, you are a California resident.
Can I use TurboTax if I lived in two states?
Learn where to file state income taxes, even if you're in the military, or earned money in multiple states. TurboTax will calculate how much you owe to the different states where you have earned income.
Example: An Indiana resident works exclusively in Illinois for an employer with a business connection with Indiana. The Illinois employer withholds Illinois state income taxes on behalf of the employee at 4.95% (the income tax rate in Illinois).

Put simply, state tax reciprocity means you can live in one state and work in another without being taxed in your work state. Instead, you only pay taxes to the state you live in. If no relevant state tax reciprocity agreement exists between your residence state and work state, you may need to file taxes in both.
All U.S. citizens are residents of at least one state for tax purposes. Your state of residence is determined by: Where you're registered to vote (or could be legally registered) Where you lived for most of the year.
Your primary residence (also known as a principal residence) is your home. Whether it's a house, condo or townhome, if you take up occupancy there for the majority of the year and can prove it, it's your primary residence, and it could qualify for a lower mortgage rate.
- 31 days during the current year, and 183 days during the 3-year period that includes the current year and the 2 years immediately before that, counting: ...
- If total equals 183 days or more = Resident for Tax. ...
- Confused?
Dual residency is an increasingly popular concept in many parts of the world. It allows individuals to have a legal residence in two or more countries, granting them access to the social, economic, and political benefits of each nation.
Your physical presence in a state plays an important role in determining your residency status. Usually, spending over half a year, or more than 183 days, in a particular state will render you a statutory resident and could make you liable for taxes in that state.
- U.S. Postal Service address,
- Voter Registration Card,
- Federal and state tax returns, and.
- Driver's license or car registration.
If you use your former home to produce income (for example, you rent it out or make it available for rent), you can choose to treat it as your main residence for up to 6 years after you stop living in it. This is sometimes called the '6-year rule'. You can choose when to stop the period covered by your choice.
What is a permanent resident for tax purposes?
You are a resident, for U.S. federal tax purposes, if you are a lawful permanent resident of the United States at any time during the calendar year. This is known as the "green card" test.
The specific details of the rule can vary from one location to another, but the core concept is that if an individual stays within a particular area for at least six months and one day (or 183 days) during a tax year, they may be deemed a tax resident of that area and subject to its tax laws.
How to File Taxes if You've Lived in Two States. If you have lived in two states, your tax filing will depend on your income sources, which state you are living in, if you have changed jobs, and if those states have a reciprocity agreement. You will need to file part-year resident returns in both states.
Some states want you to become a resident once you've lived there for a certain period of time. Some states want taxes from you if you claim to be a resident, no matter where you work. Some want taxes from you if you work there, no matter where you are a resident. You might even end up getting taxed by both states.
Typically, you would owe state tax because there was not enough tax withheld from your paychecks to cover your liability for state tax. You might owe state taxes even when you owed nothing to the Federal government because Federal and state governments have different tax brackets.