Moving from New York to Texas with RSUs

Texas does not tax wage income at the state level; track NY-sourced wages from before your move.

Rates and rules change. Check the tax year and last-reviewed date on each page, then confirm against IRS or state guidance before you file.

State sourcing rules may depend on facts and timing

Which state taxes RSU income depends on residency, work location, grant terms, and vest date, not just where you live on December 31. Day-count splits and flat-rate estimates on this site are planning tools only, not legal sourcing determinations.

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Texas has no state income tax on wages, so vests earned as a Texas resident generally are not taxed by Texas. New York may still tax compensation connected to New York work or your residency there. The portion New York can claim depends on timing and where services were performed.

Why this happens

Texas does not levy a personal income tax on wages.

New York can tax income tied to in-state work or to your New York residency period.

Equity earned over a period that included New York work may be partly New York-sourced.

Employer may not switch to reflect your move immediately.

What to check

  • Your move date and supporting documentation.
  • dates relative to the residency change.
  • Where you performed work during the relevant periods.
  • Whether a part-year New York return applies.
  • New York guidance or a professional for allocation.

Common mistake

Assuming a Texas move makes all vests state-tax-free going back. Texas adds no state tax, but New York may still tax income connected to your New York time and work.

Example scenario (hypothetical)

Illustration only, not your tax situation.

Example: Avery moves to Texas and vests shares two months later. If part of that award was earned while working in New York, New York's rules may allocate a share of it. The facts determine the split.

When to get help from a tax pro

  • Vests occur near your move date.
  • You worked in New York during the period.
  • You need help with part-year New York filing.
  • Your shows New York wages after the move.

Related calculators

Related pages

For learning, not filing

Grants, employers, and states all differ. Use your own documents and a qualified tax professional before you make decisions from this guide.