You’re a J-1 visa holder working in Virginia or Maryland, and you’re wondering whether one state taxes you more heavily than the other. The short answer depends on your residency status under U.S. tax law, your J-1 category, and how long you’ve actually been in the country. Unlike general U.S. citizens, you may qualify for special exemptions that completely change which forms you file and how much you owe. This guide walks you through exactly what Virginia and Maryland require, common mistakes J-1 workers make, and how to figure out your real tax bill.

Do Virginia and Maryland tax J-1 visa holders differently?

Both Virginia and Maryland tax residents on income earned while living in the state. The key word is “resident” — and for J-1 holders, residency is not about where you live, it’s determined by the IRS Substantial Presence Test combined with your J-1 visa category. If you’re a nonresident alien under federal law, neither state can tax you. If you’re a resident alien, both states tax you much like they tax U.S. citizens. Virginia’s top income tax rate is graduated; Maryland’s is also graduated. The exact amount you pay depends on which category applies to you and how long you’ve been in the U.S.

It depends on your J-1 category and prior U.S. time

Your J-1 category — student, teacher, trainee, intern, camp counselor, or specialist — determines how many years you can exclude your U.S. presence from the Substantial Presence Test. Student J-1s can exclude up to 5 calendar years; teacher, trainee, intern, and other non-student categories can exclude only 2 of the last 6 calendar years (extendable to 4 in some cases). Once that exclusion window closes, the Substantial Presence Test measures whether you were physically present in the U.S. for more than 183 days (counting all days as a full day, plus certain partial days weighted at one-third). If you meet the test, you become a resident alien and must file Form 1040 — the standard U.S. return — instead of Form 1040-NR, the nonresident alien return.

If you’re still nonresident, you owe tax only on income earned while physically in the U.S. and tied to a U.S. source. If you become resident, you owe on all worldwide income. In either case, the state you file depends on where you actually worked and where you claim to live — it’s not automatic based on your federal status. Virginia and Maryland both require a state return if you earned income in the state and meet their residency rules, but those rules are separate from the federal test. This is where many J-1 holders get confused: you can be a federal nonresident and still owe state tax, or vice versa.

Common mistakes J-1 workers make about Virginia and Maryland state tax

Mistake 1: Assuming your federal status determines your state tax obligation. Federal residency and state residency are separate. You could be a federal nonresident (still under your J-1 exclusion window) and still owe Virginia or Maryland income tax because you worked there and lived there. Each state has its own residency rules — generally, if you earned wages in-state, you owe state tax, even if you’re a federal nonresident.

Mistake 2: Not checking for FICA withholding mistakes. Many J-1 workers on F-1 and J-1 visas are exempt from Social Security and Medicare taxes (FICA). However, employers sometimes withhold anyway. If your employer deducted FICA from your paychecks and you weren’t supposed to pay it, you’ll need to claim a refund on your return. Both states recognize federal FICA exemptions, but you have to report it correctly.

Mistake 3: Forgetting to file just because you’re nonresident. Even if you’re a federal nonresident, both Virginia and Maryland require you to file a state return if you earned wages in the state. You file Form 1040-NR federally, then file the appropriate state form (Virginia and Maryland both have nonresident schedules). Skipping the state return, even if you think you’ll owe nothing, can trigger penalties and interest.

Frequently Asked Questions

Do Virginia and Maryland have the same income tax rates for J-1 workers?

Both states use graduated income tax rates, meaning the percentage you pay increases as your income rises. Virginia’s tax rates vary by income bracket, as do Maryland’s — they are not identical, so your effective tax rate can differ between the two states. However, the biggest factor isn’t the rate itself, it’s whether you qualify as a resident or nonresident. If you’re nonresident, you may owe only Virginia or Maryland tax on wages earned in that specific state; if you’re resident, you owe tax to both states on all income you earned while there, regardless of which state you currently live in.

Can I claim a Virginia or Maryland income tax exemption as a J-1 visa holder?

Virginia and Maryland do not offer blanket income tax exemptions to J-1 workers. Your exemption — if any — comes from federal law (the Substantial Presence Test and your J-1 category), not state law. Once you’re a federal resident alien, you must file a state return and pay state income tax, just like a U.S. citizen. If you’re still federal nonresident, you file a nonresident state return and typically owe state tax only on income earned in that state. Neither state has a special J-1 visa carve-out.

Do I file a Virginia return, a Maryland return, or both?

You file in whichever state you actually earned income. If you worked in Virginia only, you file a Virginia return. If you worked in Maryland only, you file a Maryland return. If you worked in both states during the year, you typically file in both states, reporting the income earned in each state to each state’s tax authority. If you’re a resident and moved during the year, you may need to file in both states as a partial-year resident, allocating income based on when you worked there.

What form does a J-1 worker file for Virginia or Maryland state taxes?

Both Virginia and Maryland have separate income tax return forms. Virginia uses Form 760 (and schedules for nonresidents); Maryland uses Form 505 (and schedules for nonresidents). Which version you use depends on whether you’re federal resident or nonresident. The calculator on the J1GoTax website will tell you which federal form you need and flag state filing requirements, but you’ll also want to check the Virginia Department of Taxation or Maryland Department of Revenue for their specific forms and instructions.

Can a tax treaty with my home country reduce Virginia or Maryland state taxes?

U.S. tax treaties apply to federal income tax, not state tax. Virginia and Maryland do not recognize tax treaty benefits directly. However, if you claim a treaty benefit on your federal return and reduce your federal taxable income, that reduction may carry through to your state return, since both states generally start with federal adjusted gross income. But you cannot claim a treaty benefit directly on a Virginia or Maryland state form. Any treaty question should be addressed on the federal return and your federal filing strategy.

This is general information, not personalized tax advice. Your exact situation depends on your visa history, which state you actually worked in, and your prior time in the U.S. — use the Substantial Presence Test tool to determine your federal residency status, then consult a qualified tax preparer to confirm your state obligations.

Whether you owe Virginia, Maryland, both, or neither comes down to one calculation: your J-1 category and prior U.S. time determine your federal status, and your federal status combined with the state you worked in determines your state filing requirement. Neither state offers special J-1 exemptions, and both require a return if you earned wages in-state. The fastest way to your real number for your J-1 visa taxes is running your W-2 through our tax calculator and getting a personalized estimate based on your exact paystubs and days in the U.S.

Don’t file blind — answer a few quick questions in the calculator and see your estimated refund in minutes. If you’re still unsure about residency or state requirements, our website also has tools and guides to walk you through every step.

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