Moving to another state, what state income tax would I pay?

Question

I work from home and my employer is in another state, what state income tax would I pay. My state or my employers state, or even a special rate?

My employer is based in Michigan. I will be living in Pennsylvania. I'm not sure which state income tax, that I'd pay.

Answer 1

traci a actually gave you the only correct answer.  No idea why 3 people gave it thumbs down!

You live and work in PA so that is the State where you pay State income tax.  Where your employer is located is irrelevant.  If you lived in PA and actually performed the work in another State that would be a different story -- you'd file in both and pay the higher of the 2 States' rates --  but since you live and work in PA, that's the ONLY State where you will pay State income tax.

Answer 2

If you are an employee, the employer must already be withholding state income tax.
If you live in PA and work in PA, then you will pay PA state tax. You report income in the state where you work.
If you have never worked in Michigan, then you do not file Michigan income tax. Read about taxes for two states: http://taxipay.blogspot.com/2008/06/work…

Answer 3

You'd pay both.

I know it sucks but that is how it works if one lives in cali and works in oregon.

If only Michigan has income tax, you would pay that.


****Traci A is 100% WRONG. I work in Oregon but live in Washington and I pay Oregon income tax (Washington doesn't have it) That's what I call taxation without representation!

Answer 4

Not too sure, but probably whoever is paying you.  Where ever the company is based out of.

Call a certified tax accountant on that one, or even your employers human resources.


You may need to pay for both states.  Not sure.


:-)