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September 18, 2023
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Does North Carolina Tax Out of state (TX) income?

  • September 18, 2023
  • 1 reply
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Hi, Can someone please help me on this as I am planning to move to North Carolina and will work remotely and my income will be coming from Texas as our headquarter is in Houston, TX.

 

Do I have to pay state income tax in North Carolina as I will be a resident there but my income will be coming from TX?

 

Thanks.

    Best answer by rjs

    Yes, you will have to pay North Carolina tax. All of your income is taxed by the state that you live in, no matter where the income is from.


    As you probably know, Texas has no state income tax, so you don't have to worry about double taxation or filing a Texas tax return.


    For the year that you move you will have to file a part-year resident North Carolina return, and pay tax on any income that you received while you were a North Carolina resident.

     

    1 reply

    rjs
    rjsAnswer
    Employee
    September 18, 2023

    Yes, you will have to pay North Carolina tax. All of your income is taxed by the state that you live in, no matter where the income is from.


    As you probably know, Texas has no state income tax, so you don't have to worry about double taxation or filing a Texas tax return.


    For the year that you move you will have to file a part-year resident North Carolina return, and pay tax on any income that you received while you were a North Carolina resident.