State taxes on a job sign-on bonus for a no-state income tax resident but for an employer in an income tax state

[JSFranklin]

I currently live in a state with no state income tax. I just accepted a job that pays a sign on bonus in my first paycheck. The job is in a state with state income tax. Will that bonus have state taxes withheld? If I keep my residency address in the state with no-income tax, will I owe taxes on the sign-on bonus in that new state? Would appreciate any insight.

[MinhT · Accepted solution]

If you live in a no-state tax state and your new job is physically situated in a state with state income tax, you are liable for state tax in the state where your job is based as the sign-in bonus and wages are considered as earned in that state, even if you keep residency in the state with no state tax. State taxes should be withheld from your pay checks.