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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.

Where this fits

This tool lives inside Tax Stack + Going 1099 and is most useful for freelancers and founders.

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.