If I have an SF remote job and live in Texas would I pay California taxes still?

Thinking it could be a good move as a software enginer, as Texas has no income tax and it's rather high and California- though not sure if it would actually work this way..

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  • danxp2
    Lv 6
    1 month ago
    Favourite answer

    This would depend, on if you are actually an employee working remotely... or if you were a signed through a contract hire process. If you are truly a remote employee the CA company would need to have some sort of nexus in Texas to report wages there for any worker’s comp or potential future unemployment claims. If they do not this arraignment is running afoul many state laws. If you are an employee and the company has some sort fo nexus in TX you are ready to go as a Texas based employee.

    If the company does not have any nexus in TX the most likely option is to hire you as a remote IT contractor. If you were signed on as a contractor and paid as a contractor all these state boundaries become meaningless because contractors don’t have things like unemployment insurance benefits, income taxes withheld, etc. I am not up to date with all the CA or SF laws they do... but for all your work based out of Texas they wouldn’t apply and Texas sure has no such protections. 

    In either case what a company is willing to pay for a remote person out of Texas could be less then they are willing to pay for a person onsite in CA. Both because taxes/cost of living is different and the convenience of having someone onsite when needed. 

    It might or might not be a good idea. Facebook has said they aren’t going to be paying San Francisco wages to people remotely working out of low cost of living places like Kansas.

  • ron h
    Lv 7
    1 month ago

    I dunno, but i do know that if you do go to TX, register your cars, register to vote and open a bank account in TX and put your paycheck in that bank.  CA may try to say that you owe CA taxes unless you can prove where you live and work. 

  • 1 month ago

    It depends on where you LEGALLY work. You pay where you work first, regardless of where you live. That said, if you never actually leave Texas, it is possible you legally work in Texas.

  • 1 month ago

    You owe state income tax to the state you are paid in.  In Texas thers is none.

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  • 1 month ago

    If you do not live or work in CA, you wouldn't owe CA taxes.

  • Judy
    Lv 7
    1 month ago

    it doesn't.  You'd still pay CA tax.

  • 1 month ago

    If you move to Texas, then you won't pay CA taxes.

    Texas does not have state sponsored short term disability or paid family leave.  You will either need an emergency fund or purchase an insurance policy to cover this.

    If I lived in SF, I would want to move.

    But overall I'd rather live in CA than TX. 

  • Scott
    Lv 7
    1 month ago

    If you earned the money in TX, you would be subject to TX tax laws, not CA.

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