Discuss these options with your employer. They are responsible for withholding state income tax and will be familiar with your situation.
State tax withholding for remote employees can be very facts and circumstances based, so two situations that may look identical can be different.
Convenience of the employer
New York follows the so-called “convenience of the employer” test. Simply stated, it means you are subject to NY tax is you are working remotely for your convenience and exempt if you are working remotely for your employer’s convenience.
New York is very aggressive about auditing telecommuters. The state began a pre-audit program of holding refunds until targeted taxpayers filled out a sheet showing days worked inside and outside the state.
That said, both options you mention may provide relief.
San Francisco
If your “home office” is no longer New York, you probably would not pay New York tax. However, in order to escape NY tax, you probably would have to report to someone in San Francisco and perform work that is connected with that office.
If you perform work for the New York office and your manager is there, you may still be subject to NY state income tax.
WeWork
New York has a multi-factor test to determine whether remote employees are New York employees. Among the factors are: (1) the home office is a requirement or condition of employment, (2) the employer does not provide the employee with designated office space or other regular accommodations at one of its regular places of business, and (3) employer reimburses expenses for the home office.
The fact that your employer pays for and requires you to go to a WeWork office seems to suggest you are working out of a “bona fide” office in Texas and should not pay NY income tax.
For more information on the so-called “convenience of the employer” tests, see TSB-M-06(5)I : New York Tax Treatment of Nonresidents and Part-Year Residents Application of the Con....
You would owe NY income tax for the days you spent working in NY.
