You are on page 1of 6

State Tax: Nonresident Filing Requirement

If you have a small amount of income from another state--say, from a publicly
partnership--do you have to file a return there? If you follow the rules precisely
probably yes. Most states demand a nonresident return from an out-of-stater w
local income. Often there's a break if the taxpayer does not have to file a feder
a handful of states, such as Minnesota and Vermont, have a threshold for local
be helpful for partnership investors.

Standard
ded +
exemption
Highest for
bracket1 $250,000
AGI2

Alabama 5.00 % $7,000


Alaska no tax
Arizona 4.54 14,389
Arkansas 6.90 4,400 t
California 13.30 8,258 t
Colorado 4.63 f
Connecticut 6.99 0
Delaware 6.60 z 6,500 t
District of Columbia no tax r
Florida no tax
Georgia 6.00 10,400
Hawaii 8.25 5,922
Idaho 7.40 f
Illinois 3.75 4,350
Indiana 3.30 2,000
Iowa 8.98 z 4,920 t
Kansas 4.60 12,000
Kentucky 6.00 2,460 t
Louisiana 6.00 z 9,000
Maine 7.15 14,287
Maryland 5.75 4,000
Massachusetts 5.10 8,800
Michigan 4.25 8,000
Minnesota 9.85 f*
Mississippi 5.00 16,600
Missouri 6.00 16,800
Montana 6.90 z 13,680
Nebraska 6.84 12,600 t
Nevada no tax
New Hampshire no tax d
New Jersey 8.97 2,000
New Mexico 4.90 20,700
New York 8.82 15,950
North Carolina 5.75 16,500
North Dakota 2.90 f
Ohio 5.00 3,500
Oklahoma 5.00 14,600
Oregon 9.90 z 4,295 t
Pennsylvania 3.07 0
Rhode Island 5.99 0
South Carolina 7.00 f
South Dakota no tax
Tennessee no tax d
Texas no tax
Utah 5.00 0t
Vermont 8.95 f
Virginia 5.75 7,860
Washington no tax
West Virginia 6.50 4,000
Wisconsin 7.65 1,400
Wyoming no tax

1
Highest bracket may kick in above the $250,000 level assumed elsewhere in
$250,000 of adjusted gross income on a joint return that has no exemptions fo
Since exemptions and deductions will be prorated, the amount in this column m
safe harbor for an out-of-stater.

d Taxes only dividends and interest, making tax irrelevant to partnership units in
f State tax formula starts with federal taxable income, effectively creating a $20
exemption/standard deduction base for our hypothetical couple.
f* State tax formula starts with federal taxable income, but shrinks exemptions fo
g Filing threshold unambiguously described as gross, not net, income from a bus
j Must file if either required to file federally or has Colorado liability.
k Nonresident exempt from filing if there is no state tax liability.
m Nonresident who does not have to file a federal return is exempt from state fili
n Filing threshold unambiguously applies to net income.
p Return required if income exceeds prorated exemptions; number here presume
income and a $250,000 AGI.
t In lieu of exemptions, state allows credits, often ones that phase out with high
v Vermont return required if either gross income exceeds $1,000 or net exceeds
w D.C. doesn't tax nonresidents.
z Federal taxes deducted from state income, effectively reducing state rate.
Sources: Ta
ing Requirements
her state--say, from a publicly traded
f you follow the rules precisely, the answer is
return from an out-of-stater with even a dollar of
er does not have to file a federal return. But only
ont, have a threshold for local income that would

Nonresident must file if income


from state from all
sources AND sources
is at least is at least

$3 p $1

1 11,000
1 1
1 33,197
1j 20,700 m
1 24,000
1 1

1 20,700 m
1 6,080
2,500 1
1k 1
1 2,000
1,000 1
1 1
1 15,930
1 20,700 m
1k 1
1 20,700 m
9p 1
1 1
10,350 g 1
1 1
600 20,700 m
1 8,740
1 20,700 m
1 20,000
1 20,700 m
1 15,950
1 16,500
1 20,700 m
1 1
1,000 1
1 11,805
33 n 1
1 20,700 m
1 20,700 m

1 20,700 m
100 v 20,700 m
1 23,900

1 4,000
2,000 g 1

0 level assumed elsewhere in this table. 2Assumes:


urn that has no exemptions for children, age or blindness.
d, the amount in this column may offer only a few dollars of

elevant to partnership units in operating businesses.


ome, effectively creating a $20,700
thetical couple.
ome, but shrinks exemptions for high-income taxpayers.
ss, not net, income from a business.
Colorado liability.
e tax liability.
return is exempt from state filing.

mptions; number here presumes $250 of nonresident

ones that phase out with high income.


xceeds $1,000 or net exceeds $100.

tively reducing state rate.


Sources: Tax Foundation, state finance departments

You might also like