If you owe state taxes this year it’s important to pay what’s owed by the filing deadline. Otherwise, your state tax agency could charge you penalties and interest for each day your outstanding balance goes unpaid. That could end up adding to what you owe.

How long do you have to live in a state to owe taxes?

Some states have a “first day” rule, which means if you set foot in a state you don’t live in and work there for one day, you owe that state income tax. Other states have varying periods of time when the nonresident income tax kicks in, ranging from 10 days to 60 days.

Do you have to pay income tax if you work in a state with no income tax?

However, you do need to file a nonresident return if you work in a state that has an income tax. Living in a state without an income tax does not exempt you from paying taxes to other states that do have an income tax. One mistake people in this situation often make is that they have no state taxes withheld from their pay.

Are there any states that have no state income tax?

There are currently seven states in the USA that have no state income tax: 1 Alaska 2 Florida 3 Nevada 4 South Dakota 5 Texas 6 Washington 7 Wyoming

Can you get a tax refund if you work in another state?

States do not issue refunds to residents if the taxes paid to another state are higher than those they would pay to the home state. Working “too long” in a given state could cause a taxpayer to be treated as a resident of that state due to a statutory day count rule.

Do you pay state income tax if you work in New Hampshire?

Two more states: New Hampshire and Tennessee tax only dividend and interest income. If you work in one of these nine states, but live in one of the 41 states (plus the District of Columbia) that do impose state income taxes, you will generally pay only resident state income taxes for the state where you live.