Do J-1 Visa Holders Pay State Taxes?

Yes. J-1 visa holders generally must pay federal and state income tax on U.S.-source income. State rules differ: some tax any income earned in the state (nonresident sourcing), some tax residents on worldwide income, and a few states have no personal income tax at all. This guide explains how state taxation works for J-1s, shows common traps, and gives practical, source-checked steps so you file correctly.

Must-read before you file: our cornerstone guide — J-1 Visa Taxes: Step-by-step guide to maximize your U.S. tax refund — and run your numbers with our free J1 tax calculator.

The Tax Moves Blog

Oct 3, 2025 | J1 VISA, Learning IRS

Why state tax matters for J-1 holders (federal baseline)

J-1 visa holders are taxed at the federal level on U.S.-source income; whether you file Form 1040NR or Form 1040 depends on your residency status under the Substantial Presence Test and other rules (see IRS Publication 519). Federal wage reporting is done via Form W-2 (or Form 1042-S if treaty/withholding applied). IRS+1

But federal tax is only half the story. States collect income tax on wages earned in their jurisdiction or on residents’ worldwide income — and each state sets its own rules (residency tests, part-year requirements, thresholds). That means two things for J-1s: (1) you may need to file one or more state returns, and (2) even a nonresident who worked in a state typically owes that state income tax on wages earned there. See the New York guidance as an example. NY State Tax Department

Short checklist: when a J-1 probably owes state tax

You worked (received wages reported on a W-2) in a state → likely yes, you owe tax in that state.
You were a resident (or statutory resident) of a state for part of the year → you may owe tax to that state on the portion of income while resident and (in many states) on all income if domiciled.
You lived in a state with no personal income tax (e.g., Florida, Texas, Washington, Wyoming, Alaska, Nevada, South Dakota, Tennessee, New Hampshire) → you generally do not owe state wage tax (but watch dividends/interest rules in some states). Tax Foundation+1

How states generally decide who must file

States use two main tests

Domicile / resident test (state of mind + facts) — the state where you have your permanent home (domicile) may tax you on worldwide income. Many states focus on your “domicile” factors (driver’s license, voter registration, home lease, etc.). Blank Rome

Statutory residency (days-based) — many states treat you as a resident if you spend 183+ days in the state or maintain a permanent place of abode there; other states have variations. Even if you don’t meet the days test, domicile rules can still make you a resident. Always check the specific state rule. Monaeo Blog+1

Practical rule of thumb for J-1s: assume that if you worked in a state and received a W-2 from an employer there, you will have a state filing requirement unless the state has no income tax.

FICA (Social Security & Medicare) — a different tax, usually exempt for many J-1s

Most nonresident students and exchange visitors in F-1, J-1, or M-1 status are exempt from Social Security and Medicare (FICA) taxes for a limited time while they remain nonresident for tax purposes (typically the first 5 calendar years for students and certain short windows for other exchange visitors). If you become a resident alien for tax purposes (Substantial Presence Test), the exemption no longer applies. Check IRS guidance for details and employer reporting rules. IRS+1

Important states & what J-1s need to know (examples — check your state’s website)

Below are short, verified notes on several states that host many J-1s. For every state you worked in, check that state’s revenue department website (links provided where possible).

New York (state + NYC)

Nonresidents who work in New York must file Form IT-203 if they meet income thresholds; NY taxes nonresidents on NY-source income (wages earned in NY). New York City has its own personal income tax for residents only — if you are domiciled in NYC you may owe both. If you lived/worked in NYC briefly, watch the day count/domicle rules carefully. NY State Tax Department+1

California

California taxes residents on worldwide income and nonresidents on California-source income. The FTB’s nonresident guidance and Form 540NR cover how to report income earned while physically working in CA. Residency is a facts-and-circumstances test (domicile important). State of California Franchise Tax Board

Massachusetts

MA taxes nonresidents on MA-source income and uses Form 1-NR/PY for nonresidents/part-year residents; statutes and rules treat source wages earned for MA employment as taxable. Mass.gov+1

New Jersey

Nonresidents who earned wages in New Jersey must file a NJ nonresident return (NJ-1040NR) to report NJ source income; the state publishes clear guidance for commuters and students. NJ.gov+1

Illinois

Illinois taxes residents on all income and nonresidents on Illinois-source income; nonresident aliens should attach the federal 1040NR copy when filing IL returns as required. Illinois Department of Revenue+1

Texas / Florida / Washington / No-income-tax states

Texas, Florida, Washington, Wyoming, Nevada, South Dakota, Alaska, New Hampshire and Tennessee do not impose a general personal income tax on wages (New Hampshire and Tennessee have historically taxed interest/dividends but have phased those out). If you worked only in a no-income-tax state, you typically won’t owe state wage tax — but check local or municipal rules (rare). Use a national list (Tax Foundation / major tax services) to confirm current status. Tax Foundation+1

Action: if you worked in any of the big hubs (NY, CA, NJ, MA, IL), expect state filing. If you worked in Florida or Texas, you likely do not owe state wage tax — but always double-check.

Withholding: your employer should withhold state tax (but mistakes happen)

Employers normally withhold federal and state income tax from wages on the W-2. Check Boxes 16–19 on your W-2 (state wages and state income tax withheld). If state withholding is missing or incorrect, you may still owe tax when you file your state return. If your employer paid you as a contractor (1099) instead of employee (W-2), state filing obligations can be different and potentially more complex. See our W-2 and 1099 explainers for details.
Interlinks: Form W-2, Form 1099.

Part-year residents, leaving the U.S., and multi-state issues

If you moved or left the U.S. mid-year, most states expect part-year filings. Generally:

File a part-year or nonresident return where you have state-source income.
Claim credits on the state return for taxes paid to another state (to avoid double taxation) where allowed.
Keep documentation: DS-2019, passport entry/exit dates, pay stubs, W-2s, and employer addresses. Those items also feed your federal filing (Form 1040NR/8843) and residency assessment. Link: DS-2019 guide. IRS

Scholarships, stipends and the 1042-S — state treatment varies

Scholarships, fellowships, and some grants may be reported on Form 1042-S rather than a W-2. States disagree on whether these items are taxable and how to treat them — many treat scholarship income for services (i.e., work) as taxable wages; others exempt certain qualified scholarships. If you received a 1042-S, check your state rules and our 1042-S page. IRS
Interlink: Form 1042-S guide.

The single most-useful check before you file: IRS wage & income transcripts

Before you file federal or state returns, confirm that your W-2 (and any 1099/1042-S) has been posted to IRS wage & income transcripts. The IRS Wage & Income transcript shows what employers reported and is commonly available in April for the current filing year. Filing before the IRS has the wage information can cause mismatches, processing delays, or notices. See IRS transcript FAQs and ways to request transcripts (online account, Form 4506-T). IRS+1

Interlink: IRS Transcripts guide

Step-by-step: how a J-1 should handle state taxes (practical workflow)

Gather documents: W-2(s), 1042-S (if any), DS-2019, passport, I-94, SSN/ITIN. (If you have questions about SSN/ITIN see SSN vs ITIN

Run the Substantial Presence Test (IRS) to determine federal filing status — this affects state residency in some cases. IRS

Check wage & income transcripts (IRS) to confirm employers’ reporting. IRS

Check the state revenue site(s) where you worked or lived (links in this article: NY, CA, MA, NJ, IL, etc.). If the site lists a filing requirement for nonresidents with earned wages — plan to file. NY State Tax Department+1

File the appropriate state form (nonresident, resident, or part-year). Claim credits for taxes paid to other states where allowed.

If you already filed and find a mismatch, wait until transcripts are updated and file an amended state (and federal) return if necessary — get help from a specialist.

Common mistakes J-1s make (and how to avoid them)

Filing only federal, ignoring state → results in state notices and penalties.
Filing before transcripts update → refund delays or mismatch notices. (Confirm via IRS wage & income transcript.) IRS
Assuming FICA exemptions apply to all years — remember the FICA exemption stops when you become a resident alien for tax purposes. IRS
Misclassifying income type (W-2 vs 1042-S vs 1099) → state treatment differs; verify with employer and check Form boxes. See our W-2 / 1042-S explainers. (links above)

Final checklist (before you submit state returns)
- W-2 present and matched on IRS wage & income transcript. IRS
- DS-2019 and passport entries saved. (Useful for state residency questions.)
- SSN/ITIN verified on employer forms. (If you have a W-2, you should use an SSN.)
- Confirm state withholding in W-2 boxes 16–19.
- Check state rules (resident vs nonresident vs part-year). (Links above.)
- Use credits for taxes paid to other states where allowed.
Why J1 Go Tax emphasises this step (and how we help)

At J1 Go Tax we specialize only in taxes for J-1 visa holders with W-2 income. That focus matters: we check IRS transcripts before filing, verify residency status, and prepare the correct federal and state returns so you don’t get stuck with notices or penalties. If your return shows state withholding, we’ll prepare the relevant state return(s) and make sure you claim credits where appropriate. Start with a free estimate via our J1 tax calculator and read our full procedure in the cornerstone guide.
(If you have scholarship income on Form 1042-S, we also cover how that interacts with state filings — see our 1042-S page.)
Interlinks: Cornerstone, Calculator, Form 1042-S.

Resources & official references (key reads)
- IRS Publication 519, U.S. Tax Guide for Aliens. IRS
- IRS — Taxation of alien individuals by immigration status — J-1. IRS
- IRS — Foreign student liability for Social Security and Medicare (FICA rules). IRS
- IRS — Transcript Services for Individuals (FAQs) & Wage and Income transcripts. IRS+1
- Tax Foundation / state tax lists (states without income tax). Tax Foundation+1
- New York State — Filing information for nonresidents (IT-203). NY State Tax Department
- California FTB — Part-year resident & nonresident guidance. State of California Franchise Tax Board
- Massachusetts DOR — Personal income tax for nonresidents. Mass.gov
Need help now?

If you have a W-2 and want to avoid state filing mistakes, use our free J1 tax calculator to get a realistic refund estimate, then follow the steps above — or let our team (we only file for J-1 holders with W-2) prepare your federal and state returns and double-check transcripts before filing.

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