Tool
Multi-State Income Allocation Calculator (2026)
If you work in multiple states — remote, traveling, or multi-location — you owe state income tax everywhere work happens. Apportion correctly to avoid surprises.
Multi-State Income Allocation Calculator
Remote workers, traveling consultants, and multi-location operators owe state income tax in every state where work is performed — not just where they live. Apportion your income by state and see your combined state tax burden, vs sourcing everything to a single state.
Allocate income across states
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Total allocation: 100.0%
| State | Allocation | Income | Top rate | State tax |
|---|---|---|---|---|
| California | 60.0% | $90,000 | 13.3% | $11,970 |
| Texas | 25.0% | $37,500 | 0% | $0 |
| New York | 15.0% | $22,500 | 10.9% | $2,453 |
| Total state tax (apportioned) | $14,423 | |||
Single-state baseline (California @ 13.3%): $19,950
Apportionment saves $5,528 vs sourcing everything to California.
How state allocation actually works
- Personal income tax (this tool): each state taxes the portion of income sourced to that state, generally based on days worked or services performed there.
- Corporate income tax (C-Corps): states use sales / property / payroll factors. Most have moved to single-sales-factor (SSF), where only revenue from in-state customers counts.
- Resident state credit: most resident states give a credit for tax paid to other states — preventing double taxation. The credit is usually limited to the resident state's rate.
- Reciprocal agreements: some neighboring states (e.g., NJ ↔ PA) allow residents to pay only their home-state tax on wages earned in the other state.
- Convenience-of-employer rule: NY, NJ, NE, PA (in some cases) tax remote workers as if they were physically in the employer's state, regardless of where the work actually happens.
- For an LLC's pass-through profits, sourcing follows the LLC's economic nexus rules in each state, not the owner's residence — engage a state-tax CPA when revenue crosses meaningful thresholds.