Do I have to pay NY state income tax if I live in another state?

As a resident, you pay state tax (and city tax if a New York City or Yonkers resident) on all your income no matter where it is earned. As a nonresident, you only pay tax on New York source income, which includes earnings from work performed in New York State, and income from real property located in the state.

Does New York tax income earned in other states?

Yes, NY taxes its residents’ income no matter where they earn it. They will, however, give you credit (against your NY tax) for any tax you pay to another state on the same income. There are no adjustments for income earned elsewhere, but there is a credit for taxes paid to other jurisdictions.

Does NY tax out of state workers?

New York issued guidance on this issue in Nov. 2020, clarifying that employees who live out of state, but work for a New York business, are considered New York employees and can be taxed. “They’re subject to New York taxes, no matter where they live, and they could also be subject to their own state’s taxes.”

Do you have to pay NY state tax if you live in Florida?

It depends. Although Florida has no state income tax, New York considers you working in New York if you are working remotely from home. However, if you did not work from home, then you worked outside New York 365 days, and your New York income will be zero. You will get back all of the tax you paid in.

What determines NYC residency?

The basic rule is: if a person is (1) domiciled in the city; (2) has a permanent place of abode there; and (3) spends more than thirty days in the city; then he is a city resident, and all his income worldwide is subject to NYC tax.

Can you legally live in two states?

Yes, it is possible to be a resident of two different states at the same time, though it’s pretty rare. Filing as a resident in two states should be avoided whenever possible. States where you are a resident have the right to tax ALL of your income. This is regardless of where it was earned.