State Tax: Nonresident Filing Requirements

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

Standard Nonresident must file if inc

ded +
from state
exemption
Highest for sources
bracket1 $250,000 is at least
AGI2

Alabama 5.00 % $7,000 $3 p

Alaska no tax
Arizona 4.54 14,389 1
Arkansas 6.90 4,400 t 1
California 13.30 8,258 t 1
Colorado 4.63 f 1j
Connecticut 6.99 0 1
Delaware 6.60 z 6,500 t 1
District of Columbia no tax r
Florida no tax
Georgia 6.00 10,400 1
Hawaii 8.25 5,922 1
Idaho 7.40 f 2,500
Illinois 3.75 4,350 1k
Indiana 3.30 2,000 1
Iowa 8.98 z 4,920 t 1,000
Kansas 4.60 12,000 1
Kentucky 6.00 2,460 t 1
Louisiana 6.00 z 9,000 1
Maine 7.15 14,287 1k
Maryland 5.75 4,000 1
Massachusetts 5.10 8,800 9p
Michigan 4.25 8,000 1
Minnesota 9.85 f* 10,350 g
Mississippi 5.00 16,600 1
Missouri 6.00 16,800 600
Montana 6.90 z 13,680 1
Nebraska 6.84 12,600 t 1
 Nevada no tax
New Hampshire no tax d
New Jersey 8.97 2,000 1
New Mexico 4.90 20,700 1
New York 8.82 15,950 1
North Carolina 5.75 16,500 1
North Dakota 2.90 f 1
Ohio 5.00 3,500 1
Oklahoma 5.00 14,600 1,000
Oregon 9.90 z 4,295 t 1
Pennsylvania 3.07 0 33 n
Rhode Island 5.99 0 1
South Carolina 7.00 f 1
South Dakota no tax
Tennessee no tax d
Texas no tax
Utah 5.00 0t 1
Vermont 8.95 f 100 v
Virginia 5.75 7,860 1
Washington no tax
West Virginia 6.50 4,000 1
Wisconsin 7.65 1,400 2,000 g
Wyoming no tax

1
Highest bracket may kick in above the $250,000 level assumed elsewhere in this table. 2
$250,000 of adjusted gross income on a joint return that has no exemptions for children, a
Since exemptions and deductions will be prorated, the amount in this column may offer on
safe harbor for an out-of-stater.

d Taxes only dividends and interest, making tax irrelevant to partnership units in operating b
f State tax formula starts with federal taxable income, effectively creating a $20,700
exemption/standard deduction base for our hypothetical couple.
f* State tax formula starts with federal taxable income, but shrinks exemptions for high-incom
g Filing threshold unambiguously described as gross, not net, income from a business.
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 filing.
n Filing threshold unambiguously applies to net income.
p Return required if income exceeds prorated exemptions; number here presumes $250 of n
income and a $250,000 AGI.
t In lieu of exemptions, state allows credits, often ones that phase out with high income.
v Vermont return required if either gross income exceeds $1,000 or net exceeds $100.
w D.C. doesn't tax nonresidents.
z Federal taxes deducted from state income, effectively reducing state rate.
Sources: Tax Foundatio
ements
a publicly traded
es precisely, the answer is
-of-stater with even a dollar of
file a federal return. But only
ld for local income that would

sident must file if income

from all
AND sources
is at least

$1

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

20,700 m
6,080
1
1
2,000
1
1
15,930
20,700 m
1
20,700 m
1
1
1
1
20,700 m
8,740
20,700 m
 20,000
20,700 m
15,950
16,500
20,700 m
1
1
11,805
1
20,700 m
20,700 m

20,700 m
20,700 m
23,900

4,000
1

sewhere in this table. 2Assumes:

mptions for children, age or blindness.
is column may offer only a few dollars of

hip units in operating businesses.

ating a $20,700

emptions for high-income taxpayers.

from a business.

m state filing.

re presumes $250 of nonresident

t with high income.

et exceeds $100.
Sources: Tax Foundation, state finance departments