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If I live in Louisiana but my work office is in Texas, do I still pay Louisiana state income taxes?
I live in Southwest Louisiana but my work office is in Southeast Texas. Being there is no state income tax in Texas, am I still obligated to pay state income taxes for Louisiana even though I don't work in the state?
8 Answers
- 1 decade agoFavorite Answer
Yes, you pay LA state income taxes. Since you reside in LA, LA is entitled to tax your world-wide income regardless of where it is earned.
If you want to avoid state income taxes, you'll have to move to TX. Be aware that TX property taxes are sky-high since TX has no income tax. And don't think that renting will avoid that as every landlord with a brain takes property taxes into account when setting rents.
- StephenWeinsteinLv 71 decade ago
Yes. Every state with an income tax charges anyone who lives there for income tax on money made by working in states without state income taxes. Sometimes, they even change income tax on money made working in states with state income taxes. The ONLY two situations in which money you make working is totally free of state income tax are (a) if you both work AND live in a state that has no state income tax, or (b) if you work in one state without a state income tax AND live in another state that also does not have a state income tax. If either state has an income tax, then you must pay state income tax to at least one (sometimes both) states.
- Bostonian In MOLv 71 decade ago
As is usual, "tro" is wrong again. He refuses to correct this gross error and has been repeating it for a couple of years now.
Your tax home is NOT where you work, but where you return to and the END of the work day. Since that is in LA, LA is your tax home and you pay LA state income taxes on all of your income. TX does not have an income tax, so you don't need to worry about having to file two state income tax returns.
- mrreliable3599Lv 71 decade ago
Here's how it works.
You always pay tax on your income in your home state no matter where you work. However, every state has a "credit for tax paid to another state" so you're not going to pay twice on the same income. For example, if you work in a state where you have to pay $5,000 in state tax, you get a $5,000 credit on your home state return.
You would have ended up paying the same amount net in any case, it just would be split up between two states.
Because Texas does not have a state tax, you get no credit for tax paid to another state. You just file and pay LA on all your income.
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- MargaretLv 45 years ago
I live in Texas and I paid property tax. I do pay Oklahoma income tax of royalty for oil/natural gas mineral rights. Not pleased about that since I don't live in OK. Not sure about Texas having the best roads in America.
- Anonymous1 decade ago
You could be liable, if they have a Louisiana Resident Income tax. Each state has it's own laws, gotta check yours.
- MadManLv 71 decade ago
LOL! you pay taxes where you LIVE. So, as you live in LA, you pay taxes there. if you want to avoid the tax, move to TX.
- troLv 71 decade ago
your tax home is where you work, that would be Texas if this is where you actually work
you would file non resident/part time Louisiana