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Which state taxes my RSUs when I work remotely?

Remote work can create multi-state tax questions. your home state, employer state, and vest timing all matter.

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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With remote work, more than one state can have an interest in your income, your home state, your employer's state, and any state where you performed work. Which one taxes a given depends on residency, where services were performed, and each state's sourcing rules, not just where your laptop is.

Why this happens

Your home state generally taxes you as a resident on your income.

A state where you physically perform work may tax income for that work, even if you live elsewhere.

Employer payroll withholds based on its setup, which may not match where you actually worked.

Equity earned over a period spanning multiple states may be allocated among them under their rules.

What to check

  • Where you were a resident during each period.
  • Where you physically performed work, with records like a travel log.
  • Which state(s) your employer withheld for.
  • Whether you need resident and nonresident returns and a credit.
  • Each relevant state's guidance or a professional for sourcing.

Common mistake

Assuming the state on your paycheck is automatically the only state that can tax you. Employer is a default, not a determination, where you actually lived and worked can change the answer.

Example scenario (hypothetical)

Illustration only, not your tax situation.

Example: Morgan lives in one state, works remotely for an employer headquartered in another, and spends a few months working from a third. Each state's rules and where Morgan performed services can affect how a is sourced. Records make this far easier to sort out.

When to get help from a tax pro

  • You worked from multiple states during the year.
  • Your employer's state differs from your home state.
  • You moved mid-year with unvested .
  • You are unsure which returns you need to file.

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.