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Income tax withholding requirements by state

Get a clear, state‑by‑state overview of income tax withholding rules to ensure accurate payroll compliance for every employee.

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by Brightmine Editorial Team

Managing state income tax withholding is one of the most complex challenges HR and payroll teams face, especially when employees work across multiple states or remotely. Withholding requirements vary significantly by jurisdiction—from states with no income tax to those with detailed reciprocal agreements and nonresident rules—and even small mistakes can lead to costly penalties and time‑consuming payroll corrections.

Our Fifty state chart on Income tax withholding requirements provides HR and payroll leaders with a clear, comprehensive comparison of withholding obligations for resident and nonresident employees. The chart outlines how multi‑state work arrangements affect payroll, when reciprocity or exemptions may apply, and what employers must consider to remain fully compliant.

Designed to support organizations with distributed workforces, this tool helps ensure accurate, consistent withholding no matter where employees live or perform their work.

Screenshot of the Brightmine Fifty State Chart for income tax withholding laws

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Latest updates

Updated to reflect forthcoming short-term service and disaster response employee exemptions in Alabama.

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