With Disney, beautiful beaches and no income taxes, Florida seems like heaven on Earth!
But what if you live in Florida but travel to a neighboring state for work? Well, working in a state with an income tax while living in Florida means you’ll have to pay taxes to the state you earn your income from.
For Florida residents, working in a bordering state such as Georgia, Alabama or Mississippi, you’ll have to pay tax only on the income you received there. To report this, you will file a non-resident return for the state you work in when filing your taxes.
I Live in Florida and Work in Georgia
According to the Georgia Department of Revenue website, non-residents who work in Georgia or receive income from a Georgia source…
“…are required to file a Federal income tax return and required to file a Georgia income tax return… If you are a legal resident of another state, you are not required to file a Georgia income tax return if your only activity for financial gain or profit in Georgia consists of performing services in Georgia for an employer as an employee when the compensation for services performed does not exceed the lesser of five percent of the income received in all places during the taxable year or $5,000.”
That means if you have income from a job, rental income, income from entities (trusts, estates, partnerships, s-corporations, LLCs) in Georgia, then plan on filing a non-resident tax return for the state and pay Georgia taxes for that income.
Georgia Income Tax Rates (single filers):
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1% on the first $750 of income
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2% on income between $751 and $2,250
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3% on income between $2,251 and $3,750
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4% on income between $3,751 and $5,250
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5% on income between $5,251 and $7000
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6% on income over $7,000
Georgia Income Tax Rates (joint filers):
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1% on the first $1,000 of income
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2% on income between $1,001 and $3,000
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3% on income between $3,001 and $5,000
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4% on income between $5,001 and $7,000
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5% on income between $7,001 and $10,000
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6% on income over $10,000
I Live in Florida and Work in Alabama
If you’re a Florida resident but travel to Alabama for work, you are liable to pay Alabama taxes on the income earned in the state and file a non-resident return for Alabama. According to Alabama’s website, you must file a non-resident Alabama return…
“If you received taxable income from Alabama sources or for performing services within Alabama and your gross income from Alabama sources exceeds the allowable prorated personal exemption. Nonresidents must prorate the personal exemption. If your Alabama gross income exceeds the prorated amount, a return must be filed.”
Alabama Income Tax Rates (single filers):
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2% on first $500 of income
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4% on income between $501 and $3000
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5% on income over $3000.
Alabama Income Tax Rates (joint filers):
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2% on first $1,000 of income
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4% on income between $1,001 and $6,000
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5% on income over $6,000.
I Live in Florida but Work in Mississippi
Florida residents traveling to Mississippi will have to file a non-resident return for Mississippi. According to Mississippi’s website , non-resident filers must;
“Include all income on your Mississippi non-resident return. If you perform services partly in and partly out of the state, only the wages you paid for the services performed in Mississippi are subject to Mississippi income tax. The W-2 forms issued to you from your employer(s) should indicate the state in which the wages were paid, along with the wages you earned in that state.”
Mississippi Income Tax Rates (single filers):
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3% on first $5,000 of income
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4% on income between $5,001 and $10,000
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5% on income over $10,000.
Filing a joint tax return for Mississippi? The rates will remain the same.
Avoid confusion and file with RapidTax
Interstate taxation can get confusing, especially if you live in a state without an income tax, like Florida. The general rule of thumb is that you will have to file a non-resident return in the state you worked in but did not live in and report only the income earned in that state.
If you’re a Florida Resident, you’ll need to file your federal taxes. If you worked in states outside of the Florida lines, don’t forget to file a non-resident return for those states.
Hi I’m about to start working in NYC for three months but my permanent tax home is in Florida. Can I be taxed in my home state of Florida or do I have to be taxed in NY because I’ll be working there for three months?
You shouldn’t be taxed in your home state because Florida does not have State Income Tax. Whether you are taxed in NY depends on whether or not your employer withholds NY taxes (Boxes 15-20 on your W-2).
Hi, I have a FL license and my car is registered in Florida, but I am renting an apartment in Georgia where I physically live (I only go to Florida to see family sometimes) and I work in Georgia as well (for over a year now). I understand that I will file taxes in GA (along with federal taxes), but will I file a nonresident return or file as a Georgia resident? Do I technically have two residencies because of my license and car registration in FL?
Thanks for any help!
If you consider Florida your domicile state and you are only residing in Georgia for work with no intention of moving into the state to become a resident, filing as a non-resident for the state of Georgia is all you will need to do, as the income that you are earning is subjected to their state taxes.
I am a FL resident.
I work from home/FL on Mondays and Fridays(2 days every week), but travel to the company’s office in Virginia from Tuesdays to Thursdays (3 days every week) — I pay my own airfare to VA, but I get reimbursed for hotel charges in VA.
For many days in the year do I need to pay non-resident IT to VA? Shouldn’t it be (3/7)x365=157 days?
Thank you.
Specifically as to how your payroll department is reporting your income earned and taxes withheld and how the state will calculate it, you will need to discuss this with your company. Because they handle your information and the reporting of it, this will affect how the state taxes your income.
If I work for a NY Corp remotely from my condo in FL and I am being paid by the NY Corp do I have to pay NYS taxes?
Generally, if you live in one state and work remotely in another, then you would only file and pay taxes to your resident state. However, if your W-2 form lists NY in box 15, then you’ll need to also file a non-resident tax return for NY.
I just moved to Florida mid-year. I telework from home remotely 100% of the time. For the first 3 months of 2017, I lived and worked in Maryland and had MD tax withheld. Starting now, since I now live and work in Florida — for a a US Government agency headquartered in Maryland — can I submit a new MW507 form telling my federal agency employer to stop withholding MD tax? Will I file a part-year resident tax form this year? Since it is Florida, I have no state form to give to Maryland asking for a 1 for 1 offset reduction, but I should not be taxed for April through December, correct? For 2018, I should not have to file ANY state tax forms — not even a non-resident form to Maryland — right?
Hello Tristan,
You will be required to file a part-year resident tax return for Maryland because you lived and earned income in Maryland. However, you moved to Florida and will not have to file a state tax return for Florida.