Moving to WA - which state do I pay taxes in?

[abhaysawhney]

Hi folks,

I live in California and work remotely for a company in Seattle, WA.

Later this summer, I plan to move to Seattle and continue working for the same WA-based company.

Since CA has income tax but WA doesn't, will I end up paying CA taxes for the time I'm here? Also, is there any tax benefit to moving to WA in June (so that I'm spending more than half the year in WA?)

Thank you 🙂

[DanielV01 · Accepted solution]

You will pay California tax as long as you are physically working inside of California, even though you may be telecommuting to another state.  As far as tax benefits are concerned, the sooner you are able to move to Washington, the sooner you will not have to pay California tax on your income earned in Washington.  

If you move before the end of 2021, you will file a California part-year return.  Also, immediately notify your HR department when you physically move so that you are not withheld California tax on income they will no longer tax.

[abhaysawhney]

Thanks Daniel! Really helpful 🙂

[DanielV01]

Happy to assist.  You are welcome.