Do I owe taxes in another state if I work remotely from there in 2025?

Working remotely from a state other than where your employer is located can create tax obligations in multiple states. The rules vary significantly by state.

General rule: Most states tax income earned while physically present in their state. If you work remotely from State B but your employer is in State A, you may owe taxes to both states. Most states offer a credit for taxes paid to other states to prevent full double taxation, but the math does not always work out perfectly.

"Convenience of the employer" states: A few states (notably New York, Connecticut, Delaware, Nebraska, and Pennsylvania) apply the "convenience rule," which taxes remote workers as if they were working in the employer's state unless the remote work is required by the employer (not just permitted). This means a New York-based employer with an employee working from Florida could still trigger NY income tax on that employee.

Key thresholds and safe harbors: Some states have de minimis thresholds. For example, if you travel to a state for fewer than a certain number of days (often 10-30 days), you may not trigger a filing obligation. However, many states have no such threshold.

Practical advice: Track the days you work in each state carefully. If you moved mid-year, you will likely need to file part-year resident returns in both states. If you are an employer, be aware that having employees work remotely can create corporate nexus in new states, potentially triggering business tax obligations. Consult a CPA familiar with multi-state taxation.