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Do You Pay Tax in Two States the Year You Move?

Usually yes: a part-year return in each state with an income tax. An $80k NYC renter who moves to Texas on July 1 owes about $3,140 to NY and NYC, not $6,389.

By MoveMath Editorial TeamUpdated October 13, 2026

Usually, yes. In the year you move between two states with income taxes, you file a part-year resident return in each. Each state taxes the income you receive while you live there, plus any income from its sources after you leave. If the new state has no wage tax, you file only in the old one. A single filer earning $80,000 who moves from New York City to Texas on July 1 owes roughly $1,860 in New York State tax and $1,280 in NYC tax, about $3,140 in total. Staying in New York all year would cost $6,389. Start from the full-year figures in the take-home pay calculator.

How New York taxes a part-year resident

New York doesn’t just tax half your salary. On Form IT-203, you first compute a base tax as if you were a full-year resident on all your income. Then you multiply it by an income percentage: New York-source income divided by federal AGI. For a part-year resident, New York-source income is everything received while a resident plus New York-source income after you leave.

Example: $80,000 of wages, $40,000 earned January–June as a NYC resident, $40,000 earned July–December as a Texas resident with a Texas employer.

Step Amount
NY base tax on $80,000 as a full-year resident (2026) $3,723
Income percentage: $40,000 ÷ $80,000 50%
NY State tax for the year ≈ $1,862

New York City tax is computed separately on Form IT-360.1. You take the income received during the NYC resident period, subtract a standard deduction prorated by months of residence, and apply the city rates directly:

Step Amount
NYC resident-period income $40,000
Standard deduction, prorated 6 of 12 months ($8,000 × 0.5) −$4,000
NYC taxable income $36,000
NYC tax ($858 + 3.819% of the amount over $25,000) ≈ $1,278
NY State NYC Total
Move July 1 ≈ $1,862 ≈ $1,278 ≈ $3,140
Stay in NYC all year $3,723 $2,666 $6,389

The move saves about $3,250 that year. Because New York starts from tax on your full income, its bill stays at about half the full-year tax, not the lower tax that $40,000 alone would produce ($1,563). These are estimates from MoveMath’s 2026 rate data. Your return will also reflect credits, other income and the exact dates.

How California taxes a part-year resident

California works the same way in principle. Part-year residents pay tax on all worldwide income received while a California resident and on California-source income while a nonresident (FTB). On Form 540NR, you use Schedule CA (540NR) to compute your income as if you were a full-year resident, and the California share in its column E. The tax is your California taxable income times an effective rate: the tax on your total taxable income divided by that total.

Example: $90,000 of wages, half earned in California before a July 1 move to Texas.

California tax
Full-year resident on $90,000 (2026) $3,981
Part-year: about half, at the full-income effective rate ≈ $1,990

The move saves roughly $1,990 of California income tax that year. SDI is withheld only on California wages, so it falls by half too, from $1,170 to $585.

Other states

  • Illinois: part-year residents file Form IL-1040 with Schedule NR. They include all income received while a resident and Illinois income received while a nonresident (Illinois DOR).
  • Oregon: part-year residents file Form OR-40-P. Tax is figured on full income and multiplied by the Oregon percentage (Oregon DOR).
  • No-wage-tax states (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming): no individual income tax return on wages, whenever you arrive.

Residency traps when leaving New York

Domicile. New York says your New York domicile doesn’t change until you show, by clear and convincing evidence, that you have abandoned it and set up a new one. Filing a certificate of domicile or registering to vote elsewhere is not enough on its own (NY Tax Department).

Statutory residency. Even if you are domiciled elsewhere, you are taxed as a New York resident if you keep a permanent place of abode in the state for substantially all of the year and spend 184 days or more in New York. Any part of a day counts as a day.

Remote work: New York’s convenience rule

If you move away but keep working remotely for a New York office, New York can still tax that pay. In the Tax Department’s words: if you are a nonresident whose primary office is in New York State, your days telecommuting are considered days worked in the state, unless your employer has established a bona fide employer office at your telecommuting location (NY Tax Department). Without that, New York keeps taxing the wages even after you have moved.

Withholding during the move year

Tell payroll your move date so state withholding switches. If the old state keeps withholding after you leave, you claim the excess back on its part-year return. A remote worker whose employer has no presence in the new state may need to make estimated payments there.

Planning the move year

  • Earlier is cheaper. Every month you are a resident of the lower-tax state takes income out of the old state’s share. In New York’s method, though, that share is still taxed at your full-income rate.
  • Watch timing of bonuses and equity. Pay earned for work done in the old state can stay taxable there even if it is paid after you move.
  • Keep records: your lease or closing documents, the date you surrendered your old driver’s license, voter registration, and a log of work days by state.

See New York, California, Texas. Model the full-year budget in each place with the cost-of-living calculator.

Frequently asked questions

Do I file two state tax returns the year I move?+

Usually, if both states tax income. Each state taxes what you receive while a resident, plus its own source income while you are not. Moving to Texas, Florida or another state without a wage tax leaves only the old state's part-year return.

What does 'domicile' mean for state tax purposes?+

Your domicile is your permanent, primary home, the place you intend to return to. You can have several residences but only one domicile. New York says a New York domicile doesn't change until you show clear and convincing evidence that you abandoned it and set up a new one.

Can New York tax me as a resident even if I'm domiciled elsewhere?+

Yes. You are a New York resident for the year if you keep a permanent place of abode in the state for substantially all of the year and spend 184 days or more there. Any part of a day counts.

Should I move before or after year-end?+

The earlier in the year you become a resident of the lower-tax state, the less income the old state taxes. Bonuses and stock that vest after the move can still be taxed by the old state if they were earned for work done there.

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