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Do I Pay State Taxes If I Live in Texas but Work in a Different State?

Living in a tax-free state doesn’t mean you aren’t responsible for income taxes if you work in a bordering state.

Texas is an income tax-free state. Fantastic, right? It is for residents of Texas who both live and work in the state. For those that live in Texas but work in bordering states such as Louisiana, New Mexico or Oklahoma, there is an income tax to pay.

If you live in Texas but work in a different state, it’s best to learn the income tax details of the state you work in and the importance of  filing a non-resident return for that state.

I Live in Texas but Work in Louisiana

If you work in Texas but travel to Louisiana for work, you will need to file a non-resident state return for Louisiana reporting all income earned from Louisiana sources.

Personal Louisiana Income Tax Rate:

Single Taxpayers:

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What Are the Marginal Tax Rates for California in 2013?

Find out how much money you will owe California when you file state taxes

California is one of the highest taxing states in the country. So it makes sense for Californians to plan ahead and see how much money the state is going to take instead of getting surprised by a big bill next winter.

California’s marginal tax rates for 2013 are as follows. Note that different rates apply to those filing as single and to married couples filing a joint return.

Single Tax Rates

Income Bracket

Tax Rate
$0 – $7,123 1%
$7,124 – $16,889 2%
$16,890 – $26,656 4%
$26,657 – $37,004 6%
$37,005 – $46,765 8%
$46,766 – $999,999 9.3%
$1,000,000+ 10.3%

 

Married Filing Jointly Tax Rates

Income Bracket

Tax Rate
$0 – $14,427 1%
$14,248 – $33,779 2%
$33,780 – $53,313 4%
$53,314 – $74,009 6%
$74,010 – $93,531 8%
$93,532 – $1,999,999 9.3%
$2,000,000+ 10.3%

Like the federal system, each of these rates applies only to your income that falls within that specific bracket. Your top rate does not apply to all of your income.

For example, if you make $40,000, you only have to pay 8% on the $2,995 that falls above that bracket’s $37,005 threshold. You would pay 1% on your first $7,123 of income, 2% on the next $9,765, etc.

California has some of the most complicated state taxes in the nation. Thankfully, when you file with RapidTax, all this math is taken care of for you automatically.

Photo via Mike Behnken on Flickr.

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Who Needs to File New York State Taxes?

Figure out if you need to file a New York return and then take care of it on RapidTax

There are three categories of people who have to file a New York State return: residents, nonresidents, and part-year residents. All three categories have different reasons for filing.

Residents

New York residents are pretty much those people who live permanently in New York State. Officially a resident is anyone whose domicile is in New York or whose domicile is not in NY but who maintained a permanent place of abode in NY for more than 11 months of the year and spent at least 184 days here.

Obviously there are exceptions, but they are relatively few and far between. You can find the definition of a resident and the exceptions here.

Generally New York residents must file Form IT-201 Resident Income Tax Return if they were also required to file a federal return. They must pay tax on ALL of their income no matter where it was earned. Continue reading “Who Needs to File New York State Taxes?”