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//// Career · Tax

Multi-State Tax Estimator

Remote freelancers may owe taxes in multiple states. Enter your home state, total income, and up to 3 source states to see exactly what you owe each state, how credits reduce double taxation, and your true blended state tax rate.

SE Tax Rate15.3%
QBI Deduction20%
Quarterly DeadlinesApr · Jun · Sep · Jan

Total multi-state tax bill

$2,580

2.6% blended state rate · $2,580 extra vs home-state-only

Your situation

$

Source States

States where your clients or work are located
$

Home State Tax

$0

Texas · 0.0% rate

Source State Taxes

$2,580

across 1 taxing state(s)

Credit Applied

$0

reduces home state bill

Net Home State Tax

$0

after credits

Effective Blended Rate

2.6%

total state tax rate

Extra vs Single State

$2,580

multi-state premium

Important: NY & CA Aggressive Sourcing Rules

New York applies the "convenience of the employer" rule — if you work remotely for a NY-based employer or client for your own convenience (not because the employer required it), NY may claim tax on all your income, not just the NY-sourced portion. This estimate uses only your NY-sourced income; your actual NY liability could be higher.

State-by-state breakdown

StateIncomeRateGross TaxCreditFile?
TXTexas(home)
$100,0000%No
NYNew York
$40,0006.5%$2,580Yes
Total$2,580$0
Net multi-state bill after credits$2,580

How multi-state taxation works

As a remote freelancer, your home state taxes your entire income. But if you earn income sourced to another state — by working for a client located there or physically performing work there — that state can also tax that portion of your income. To avoid fully double-taxing you, most states offer a credit for taxes paid to other states, which reduces (but may not eliminate) your home state bill.

Note: "Sourced income" rules vary. Some states use where the work is performed; others use where the client is located. This tool uses the income you assign to each state — consult a CPA for your actual nexus.

1

Total annual income

all freelance income across all states

= $100,000

2

Texas (home state) tax

total income × 0.0%

$100,000 × 0.0%

= $0

Your resident state taxes ALL of your income, regardless of where it was earned.

3

New York (source state) tax

income from NY × 6.5%

$40,000 × 6.5%

= $2,580

You earned income sourced to New York, so New York can tax it.

4

Net home state tax (after credits)

home state tax − credits for out-of-state taxes paid

$0 − $0

= $0

5

Total multi-state tax bill

net home state tax + all source state taxes

$0 + $2,580

= $2,580

6

Effective blended state tax rate

total multi-state tax ÷ total income × 100

$2,580 ÷ $100,000 × 100

= 2.6%

This is your blended state income tax rate across all states you owe.

Key insight

The key insight: your resident state taxes ALL your income, and source states tax only what's earned there. The credit mechanism prevents full double taxation, but you may still pay a bit more than home-state-only — especially if your home state's rate is lower than the source state's.

#ShowYourWork

Estimates only — not tax advice. State sourcing rules are complex and vary by state. This tool uses flat effective rates and a simplified credit model. Consult a CPA or tax professional for your actual multi-state liability.

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