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Telecommuting Rules by State

The Covid-19 pandemic has disrupted many of our daily routines, often including how and where we work. For those telecommuting (working from home), tax implications can arise when the company you work for is located in a different state than your home. Each state has different rules for this situation, which we break down below. Click the state you live in to jump to that section.

Please Note: “Teleworker” is defined here as a person who lives in one state and works from home, but the company is located in a different state. This information applies to tax year 2021 only.

Alabama

Teleworkers residing in Alabama working for a company in another state due to COVID-19 will not be taxed in Alabama.

Alaska

Alaska does not assess individual income tax.

Arizona

Teleworkers residing in Arizona working for a company in another state due to COVID-19 will not be taxed in Arizona.

Arkansas

Teleworkers residing in Arkansas working for a company in another state due to COVID-19 will be taxed in Arkansas.

California

Teleworkers residing in California working for a company in another state due to COVID-19 will not be taxed in California.

Colorado

Teleworkers residing in Colorado working for a company in another state will be taxed in Colorado.

Connecticut

Any resident who paid income tax to any other state that uses a convenience of the employer rule shall be allowed a credit against such resident’s Connecticut income tax, for the tax paid to such other state on income earned by such resident while working remotely from this state for said taxable year, including while obligated by necessity to work remotely from this state.

Delaware

No official guidance from Delaware.

District of Columbia

Teleworkers residing in the District of Columbia working for a company in another state due to COVID-19 will not be taxed in the District of Columbia.

Georgia

Teleworkers residing in Georgia working for a company in another state due to COVID-19 will not be taxed in Georgia.

Hawaii

No official guidance from Hawaii.

Idaho

Teleworkers residing in Idaho working for a company in another state due to COVID-19 will be taxed in Idaho.

Illinois

No official guidance from Illinois.

Indiana

Teleworkers residing in Indiana working for a company in another state due to COVID-19 will not be taxed in Indiana.

Iowa

Teleworkers residing in Iowa working for a company in another state due to COVID-19 will not be taxed in Iowa.

Kansas

No official guidance from Kansas.

Kentucky

Teleworkers residing in Kentucky working for a company in another state due to COVID-19 will not be taxed in Kentucky if a reciprocal agreement already exists with that state.

Louisiana

Teleworkers residing in Louisiana working for a company in another state due to COVID-19 will not be taxed in Louisiana.

Maine

Teleworkers residing in Maine working for a company in another state due to COVID-19 will not be taxed in Maine.

Maryland

Teleworkers residing in Maryland working for a company in another state due to COVID-19 will not be taxed in Maryland.

Massachusetts

Teleworkers residing in Massachusetts working for a company in another state due to COVID-19 will be taxed in Massachusetts.
Residents who previously worked in another state and are now telecommuting may be eligible for a credit to the extent that they continue to owe tax to that other state.
Non-resident teleworkers who worked in Massachusetts prior to the COVID-19 state of emergency will continue to be taxed in Massachusetts.

Michigan

Teleworkers residing in Michigan working for a company in another state due to COVID-19 will be taxed in Michigan.

Minnesota

Teleworkers residing in Minnesota working for a company in another state due to COVID-19 will not be taxed in Minnesota.

Mississippi

Teleworkers residing in Mississippi working for a company in another state due to COVID-19 will not be taxed in Mississippi.

Missouri

No official guidance from Missouri.

Montana

Teleworkers residing in Montana working for a company in another state due to COVID-19 will be taxed in Montana.

Nebraska

Teleworkers residing in Nebraska working for a company in another state due to COVID-19 will not be taxed in Nebraska.

New Hampshire

No official guidance from Missouri.

New Jersey

Teleworkers residing in New Jersey working for a company in another state due to COVID-19 will not be taxed in New Jersey.

New Mexico

No official guidance from New Mexico.

New York

No official guidance from New York.

North Carolina

North Carolina has not modified their existing laws; therefore, teleworkers or any other employees who perform services in North Carolina will be subject to North Carolina income tax.

North Dakota

Teleworkers residing in North Dakota working for a company in another state due to COVID-19 will not be taxed in North Dakota.

Ohio

Teleworkers residing in Ohio working for a company in another state due to COVID-19 will be taxed in Ohio.

Oklahoma

Teleworkers residing in Oklahoma working for a company in another state due to COVID-19 will not be taxed in Oklahoma.

Oregon

Teleworkers residing in Oregon working for a company in another state due to COVID-19 will be taxed in Oregon.

Pennsylvania

Teleworkers residing in Pennsylvania working for a company in another state due to COVID-19 will not be taxed in Pennsylvania.

Rhode Island

Teleworkers residing in Rhode Island working for a company in another state due to COVID-19 will be subject to RI income tax with a credit allowed for taxes paid to another state.

South Carolina

Teleworkers residing in South Carolina working for a company in another state due to COVID-19 will not be taxed in South Carolina.

Tennessee

No official guidance from Tennessee.

Utah

No official guidance from Utah.

Vermont

Teleworkers residing in Vermont working for a company in another state due to COVID-19 will be taxed in Vermont.

Virginia

Teleworkers residing in Virginia working for a company in another state due to COVID-19 will be taxed in Virginia.

West Virginia

No official guidance from West Virginia.

Wisconsin

Teleworkers residing in Wisconsin working for a company in another state due to COVID-19 will not be taxed in Wisconsin.

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Telecommuting Rules by State