Question about state tax when working in one state and headquartered in another

Factual Questions
1

What happens if:

  1. Your company is headquartered in one state; but
  2. Has branches in other states which can be considered “hubs” for admin and tax purposes for employees working within X miles of those hubs; and
  3. You work for the company near one of the hubs, but live in a different state. I.e., in Vancouver, Washington, which is close to Portland, which is considered one of the company’s branch hubs.

Which state is going to be taxing your income? The state which is home to company headquarters, the state which is home to the branch hub, or the state in which you live?

2

Pretty sure it’s the state where the work is done. I score AP tests and have worked for ETS (NJ) while living in Texas. When we met in Missouri to do the actual scoring, I paid state taxes on that income. When we met in Tampa, I didn’t pay any, as FL has no state income tax.

3

Depends upon your state and its agreements with surrounding States. When I claimed Ohio as my residence I had to pay Ohio taxes for all income earned in say Indiana.

4

I should have made this clearer: This supposes that the person works from his home in Vancouver, rather than at the hub office in Portland, though the hub is his anchor point with the company.

5

In general, it’s the state in which you perform the work. In this case, Washington. But that can be modified by agreement between states or if the company has other arrangements. I worked for 2 decades in NH for a company located in MA, and always paid NH income taxes (ie, none). For people who worked from home or the office in NH some days, and in MA other, they kept track of which days were worked in which states and were taxed accordingly.

6

The company headquarters or offices don’t matter - it’s going to be the state you live in and/or the state the work was done it. I say and/or because some states have provisions where for example, New Jersey and Pennsylvania have an agreement where NJ residents don’t pay PA tax on work performed in PA and vice versa. Or where New Jersey gives its residents credit for NY non-resident income taxes paid for work performed in NY and vice versa.

7

Now that I’m getting a handle on it and know some good search terms, I’ve turned up a couple of articles discussing this topic. I know that I shouldn’t depend on news articles, but it’s a start:

People who work and live in Washington don’t pay income tax.