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New Member
posted Oct 24, 2023 6:17:07 PM

I’m a pilot. Residence in UT. Based and fly out of Houston. Spend more than half of each month there and commute. Which state do I pay state income tax to?

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2 Replies
Level 15
Oct 24, 2023 6:19:50 PM

As a Utah resident you pay Utah tax on all of your income, no matter where the income is from. Texas has no state income tax.

 

Level 15
Oct 26, 2023 8:46:36 AM

An air carrier employee, such as a pilot who performs duties in more than one state, is obligated to pay income tax in the state where he is a resident and the other state where he has earned more than 50 percent of his total income.  According to the, 49 U.S.C. 14503 - 

Reference: https://tfx.tax/pilots-and-flight-crew/articles/what-states-do-pilots-have-to-pay-taxes-in.html

 

The general rule is: If you live in one state and work in another state; that income is subject to taxation by both states. You file a nonresident return for the state you worked in, reporting only the income you earned there.

You report all your income on your resident state return, including the income earned in the other state. Your home state calculates tax on all your income, but gives you a credit, or partial credit, for tax you paid to the other state.

When you worked in a state without an income tax (e.g. Texas), there will be no credit, since there was no TX tax. In other words, having worked in a state without an income tax does not get you out of paying state tax on that income, to your home state.