Living in Texas, working for a California employer

California taxes income earned there; Texas taxes you as a resident and gives a credit for taxes paid to California. You file a nonresident California return and a resident Texas return.

Texas has no state income tax, so there's no home-state return and no credit to claim. But California taxes wages sourced to work performed for its employers, and California is not a convenience-rule state. So the pivotal question is where the work physically happens: work performed entirely from Texas limits California-source wages, while days spent working in California are taxable there. Track where you actually sit.

You live in Texas, which has no state income tax. And your employer is in California, which has a graduated income tax up to 13.3%. That combination decides who taxes your wages, and whether a credit keeps you from paying twice. Here's the rule for this specific pair.

The rule for Texas → California

File a nonresident California return

California taxes income earned there; Texas taxes you as a resident and gives a credit for taxes paid to California. You file a nonresident California return and a resident Texas return.
Other state rules may apply

This tool does not attempt to fully model the 'convenience of the employer' rule beyond New York and a small group of clearly identified states. For other jurisdictions, always confirm nonresident wage sourcing directly with the state Department of Revenue or a qualified professional.

What each state would take on $100,000

California tax (work state)	$5,555
Texas tax (home state)	None, no income tax
Double-taxation risk	Low, one state, or a credit applies

Texas has no income tax, so there's no home-state credit to claim. But also no home tax to stack.

Check your own situation

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Questions

Do I pay Texas or California tax if I work remotely?

California taxes income earned there; Texas taxes you as a resident and gives a credit for taxes paid to California. You file a nonresident California return and a resident Texas return. This tool does not attempt to fully model the 'convenience of the employer' rule beyond New York and a small group of clearly identified states. For other jurisdictions, always confirm nonresident wage sourcing directly with the state Department of Revenue or a qualified professional.

Will I be taxed twice living in Texas and working for a California employer?

Usually not. File a nonresident California return; Other state rules may apply, the mechanism here prevents paying full tax to both states, though you may still file two returns.

This maps the rules; it does not file them. Cross-border filing needs a professional. Convenience-rule specifics vary, confirm with the state Department of Revenue. Nothing stored. Not tax or legal advice.