Do Taxes Change When You Move to Another State?

Editor's Note: This article was updated to reflect the IRS 2026 tax season.

Quick Answer: If you moved to another state during the tax year, you will likely need to file taxes in both states. You'll typically file a part-year resident return in each state, reporting only the income earned while living there. However, if you moved to or from a state with no income tax, or if reciprocity agreements exist between your states, your filing requirements may be simplified.

Filing taxes, a daunting but necessary financial task for taxpayers each year, becomes even more complex for those who move to another state. A part-year resident return is a state tax filing used when you lived in a state for only a portion of the tax year, reporting income earned during your residency period in that state. Each state's distinct tax laws mean that without adequate knowledge, taxpayers risk accumulating unpaid tax debt, potentially leading to IRS scrutiny.

Though many might not anticipate moving to another state, the U.S. Census Bureau data suggests it's more common than expected, with approximately 14% of the population moving interstate annually, equating to around 40 million people. Understanding the tax implications of such moves is crucial.

Interstate migration, significantly influenced by state-specific tax policies, sees a considerable number of Americans relocating annually. States like Alaska, Nevada, South Dakota, Texas, Washington, and Wyoming do not impose an income tax, whereas states such as Illinois, California, New Jersey, Michigan, and Pennsylvania, known for their higher income and property taxes, frequently experience outbound migration.

This migration trend is largely driven by the desire for lower taxes and better climates, with people moving from high-tax states in the Northeast and Midwest to more tax-friendly and warmer states in the South and Northwest.

States With No Income Tax (2026)

The following nine states do not impose a state income tax on wages:

• Alaska
• Florida
• Nevada
• South Dakota
• Tennessee
• Texas
• Washington
• Wyoming

If you moved to or from one of these states, you may only need to file a state return in the state that does have an income tax.

Crucial Factors for Tax Filing After Moving States

When moving across state lines, the tax filing process involves several important considerations:

1. Identifying the tax laws of both the origin and destination states – Each state has unique rules for determining residency status, tax rates, and what income is taxable. Research both states' requirements before filing to avoid errors or missed obligations.
2. Determining the source of income – Income is generally taxed by the state where it was earned. If you worked in both states during the year, you'll need to allocate your income accordingly on each part-year return.
3. Understanding state income tax reciprocity agreements – Some states have agreements that allow residents to pay taxes only to their home state, even if they work across state lines. This can significantly simplify your filing requirements.

The 183-Day Residency Rule

Many states use the 183-day rule to determine tax residency status. If you spend 183 days or more in a state during the tax year, that state may consider you a resident for tax purposes, regardless of where you maintain your permanent home. This rule varies by state, so it's important to check the specific residency requirements for both your origin and destination states, as exceeding this threshold could trigger full-year resident tax obligations.

Filing Taxes in Both States

Moving to a new state often requires filing tax returns in both the origin and destination states, depending on their specific tax laws. It's essential to research and understand the residency and income tax rules of both states involved in the move.

Income Source Considerations

Post-move, you may need to file part-year resident returns in both states. The specific filing requirements will depend on where your income was earned, including wages, self-employment income, or property income.

State Income Tax Reciprocity Agreements

Before moving, it's advisable to check for any tax reciprocity agreements between your current and future states, which could exempt your income from state taxes in the non-resident state. These agreements can simplify the tax filing process for people who live in one state but work in another.

What Is A Reciprocity Agreement? Which States Have Tax Reciprocity Agreements?

Tax reciprocity agreements between states allow residents who work across state lines to pay income tax only to their state of residence, not the state where they work. The table below outlines the current states with reciprocity agreements.

Do I Have to File Taxes in Two States if I Moved?

When you move from one state to another during a tax year, you might need to file taxes in both states. Typically, you'll file a part-year resident return in each state, which accounts for the income you earned while you were a resident there. The exact requirements can vary based on the states involved and your income sources during the transition period.

If you earned income in both the state you moved from and the state you moved to, it's likely that both states will require you to file taxes. However, some states have reciprocal agreements that can affect where and how you file. It's vital to check the residency rules and tax laws for both states or consult with a tax professional to ensure you're filing correctly.

Seeking Assistance from Tax Professionals

Incorrectly filing taxes after an interstate move can lead to penalties. If you're facing challenges with the tax implications of relocating or have unresolved tax issues, seeking assistance from professionals like TaxRise can be beneficial.