State Income Taxation of Military Personnel and United States Citizens Residing Outside of the United States

State Income Taxation of Military Personnel and United States Citizens Residing Outside of the United States

Order Code 95-895 A
CRS Report for Congress
Received through the CRS Web
State Income Taxation of Military Personnel
and United States Citizens
Residing Outside of the United States
Updated July 24, 2003
Kerstin Roper
Law Clerk
John Luckey
Legislative Attorney
American Law Division
Congressional Research Service ˜ The Library of Congress

State Income Taxation of Military Personnel and United
States Citizens Residing Outside of the United States
Summary
This report examines and summarizes the laws of the fifty states and the District
of Columbia respecting taxation of income of citizens domiciled within the state but
residing abroad. It has been prepared biennially for many years.
This report is divided into an introduction and four sections. The introduction
includes a brief summary of pertinent provisions of Federal law, including 1) the
Soldiers' and Sailors' Civil Relief Act (containing special provisions governing the
treatment of members of the military for domicile and state income tax purposes) and
2) Internal Revenue Code provisions governing exclusion of income earned in
foreign countries, which may have an impact upon state treatment of the income of
domiciliaries residing abroad.
Section I discusses the six states (and the District of Columbia) which have no
special credit for foreign taxes paid or some exemption for income earned abroad.
The definitions of domicile and residency, the tax base and the probable income tax
obligation of domiciliaries abroad are addressed. Two of these states do not tax
earned income (Tennessee and New Hampshire). Tennessee taxes only income from
stocks and bonds, and New Hampshire taxes dividends and interest and
unincorporated businesses.
Section II focuses on those eleven states which provide a state income tax credit
for foreign income tax paid. Statutory language is summarized for each of these
states. In a number of cases the statutes provide for a credit for taxes outside the state
( to other states and to foreign countries).
Section III summarizes the provisions of law in those twenty-six states that
exclude some foreign source earned income from state taxation, following federal
law on the subject.
Section IV lists the seven states which have no income tax.

Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
I. States with No Foreign Tax Credit or Exemption Provision . . . . . . . . . . . . . . . 3
Alabama . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
California . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
District of Columbia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Mississippi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
New Hampshire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
New Jersey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Tennessee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
II. States Granting an Income Tax Credit for Foreign Income Tax Paid . . . . . . . . 8
Arizona . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Hawaii . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Indiana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Iowa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Maine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Massachusetts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Montana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
New Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
North Carolina . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Oregon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Pennsylvania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
III. States Exempting Income Earned Abroad to the Same Extent as Federal Law
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Arkansas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Colorado . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Connecticut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Delaware . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Georgia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Idaho . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Kansas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Kentucky . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Louisiana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Maryland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Michigan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Minnesota . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Missouri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Nebraska . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
New York . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
NorthDakota . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Ohio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Oklahoma . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Rhode Island . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
South Carolina . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

Utah . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Vermont . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Virginia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
West Virginia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Wisconsin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
IV. States Having No Income Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Alaska . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Florida . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Nevada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
South Dakota . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Texas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Washington . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Wyoming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

State Income Taxation of Military Personnel
and United States Citizens Residing Outside
of the United States
Introduction
This report examines and summarizes the laws of the fifty states and the District
of Columbia respecting the taxation of income of United States citizens domiciled
within the state but residing abroad. The report is divided into four substantive
sections. Section I discusses the law of states with no foreign tax credit or exemption
provision. Section II analyzes the laws of states which grant an income tax credit for
foreign income tax paid to a foreign country. In many cases, these states merely
permit credit of any taxes paid outside of the state, whether to other states or to
foreign governments. Section III describes the laws of the states which exempt
income earned abroad to the same extent as such income is exempted by federal law.
Section IV lists the seven states which have no income tax. Since no income tax is
imposed, there can really be no substantive discussion of the treatment of United
States citizens domiciled in the state but residing abroad. States which tax only
certain types of income, such as dividends and interest (see discussions of New
Hampshire and Tennessee), are discussed under the general tax provisions in Section
I.
The first three sections are divided into a discussion of the definitions of
domicile and residency for state income tax purposes, the tax base used by the state,
and the probable income tax obligation in each of these states for domiciliaries
residing abroad. In addition, special note is made where state domicile or residency
is determined in whole or in part by voting within the state and where special rules
apply to military personnel.
In regard to the special rules applicable to military personnel, a number of states
merely refer to the tax provisions of the Soldiers' and Sailors' Civil Relief Act of
1940, presently found at 50 U.S.C. App. 574. Generally, this section provides that
for state income tax purposes, an individual does not lose domicile in a specific state
solely "by reason of being absent therefrom in compliance with military or naval
orders . . . . " The same law also provides that, for state income tax purposes, an
individual does not acquire residence or domicile solely because of location under
military orders. The Act further states that, where an individual is not deemed to
reside or be domiciled in a state, military income will be treated by that state as non-
resident income not earned within the state.
Section 911 of the Internal Revenue Code (IRC) permits United States citizens
who reside abroad to exclude from their gross income up to $80,000 of foreign
earned income in tax year 2003 and a certain recognized amount for housing. This

CRS-2
exclusion applies to taxpayers living abroad who were present in a foreign country
or countries for 330 days out of any 12 consecutive months. The housing cost amount
is the excess of the taxpayer's expenses over a base housing amount. The base
housing amount is equal to 16 percent of the salary of a GS-14 government
employee. As of January 1, 2003, this salary is $72,381 so that the current base
housing amount would be $11,580.96. Housing costs provided by an employer may
also be excluded from the gross income of the employee. In line with this, IRC § 119
provides that lodging furnished in an overseas camp may be excluded from the
employee's income. It should be noted that neither exclusion is applicable to wages
paid by the United States government even if the Federal employee is residing
abroad.
Most states, and the District of Columbia, have signed agreements with the
Treasury Department which provide for the withholding of state income taxes from
the pay of service members. The text of the standard agreement may be found at 31
CFR § 215.6 - 13 (2001). The following states do not have standard agreements with
the Treasury Department to withhold state income taxes from the pay of members of
the armed services: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and
Wyoming.
The information contained in this report is accurate through the end of the 2002
legislative session of each state.

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I. States with No Foreign Tax Credit or Exemption Provision
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Alabama
Domicile, maintaining a permanent place of abode within
The entire net income of domiciliaries
Residents -- Subject to State
the State, or spending in the aggregate more than seven
and residents as defined by the statute.
income tax on all income.
months of the year within the State. Ala. Code tit. 40, § 18-
Ala. Code tit. 40, § 18-2.
2(7).
Non-residents -- Taxable on
Non-residents taxable on income from
income from property owned
Voting in Alabama is a factor considered by the courts in
property owned or business transacted
or
business
transacted
in
determining whether an individual is domiciled in Alabama
in Alabama. Ala. Code tit. 40, § 18-
Alabama.
for tax purposes. State ex rel. Rabren v. Baxter, 46 Ala.
2(6).
App. 134, 239 So. 2d 206 (1970).
Resident military personnel --
Resident military personnel taxable on
Subject to State income tax on
The Alabama Tax Regulations state that military personnel
entire net income except income
all income except income
domiciled in Alabama continue to be domiciliaries
received for active combat duty. Ala.
received for active combat
irrespective of their period of absence or actual place of
Code tit. 40, § 18-3.
duty.
residence until proof of change of domicile or residence has
been made. If domicile has changed, the burden of proof is
Non-resident military personnel are
N o n - r e s i d e n t
m i l i t a r y
on the taxpayer though he owns no property, earns no
not taxed on military pay received
personnel -- Subject to State
income, and has no place of abode in Alabama. Ala. Tax.
while stationed in Alabama.
income tax on non-military
Regs.,§ 810-3-2-.01.
income earned within the
Wives of military personnel taxable on
State.
income earned
within the State.
Military personnel taxable on non-
Wives of military personnel --
military income earned within the
Taxable on income earned
State.
within the State.
All military retirement payments are
exempt from state income taxation.
Ala. Code tit. 40, § 18-20

CRS-4
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
California
Residents -- The term “resident” for income tax purposes
The entire taxable income of a resident
Residents -- Subject to state
includes: (a) every individual who is in the state for other
of the state. Cal. Rev. & Tax Code §
income tax on all taxable
than a temporary or transitory purpose, and (b) every
17041(a). The entire taxable income
income.
Non-residents
--
individual domiciled in the state who is outside the state for
of a non-resident of the state which is
Subject to state income tax on
a temporary or transitory purpose. If such person is absent
derived from sources within the state.
all taxable income derived
for at least 18 months under an employment dated contract
Cal. Rev. & Tax Code § 17041(b).
from sources within the state.
they are not considered to be outside the state for a
temporary or transitory purposes (This exception does not
Non-resident military personnel are
Resident military personnel --
apply to those who receive over $200,000 in unearned
not taxed on military income received
Subject to state income tax on
income in a tax year). Any individual who is a resident of
while stationed in California. Spouses
all taxable income.
the state continues to be a resident even though temporarily
of military personnel taxable on
absent from the state. An individual domiciled in California
income derived from sources within
N o n - r e s i d e n t
m i l i t a r y
is absent from the state for a temporary purpose if such
the state.
personnel -- Subject to state
absence is by reason of (1) holding an elected or appointed
tax on non-military taxable
office in the Federal Government or (2) working on the staff
Gross
income
shall
not
include
income derived from sources
of an elected officer of the legislative branch of the U.S.
compensation for military service
within the state.
Government. Cal. Rev. & Tax Code § 17014.
performed by a non-resident and
attributable to a resident spouse solely
Wives of military personnel --
Every individual who spends in the aggregate more than
by application of any community
Subject to state income tax on
nine months of the taxable year within the state is presumed
property law or rule. Cal. Rev. & Tax
all taxable income derived
to be a resident. Cal. Rev. & Tax Code § 17016
Code § 17140.5.
from sources within the state.
Military hazardous duty pay which is
exempt under IRC § 112 is specifically
exempt from the state income tax.
Cal. Rev. & Tax Code § 17142.5

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PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
District of
Residents -- The term “resident” is defined as every
The entire net income of residents.
Residents -- Subject to D.C.
Columbia
individual domiciled within the District on the last day of
D.C. Code § 47-1806.1.
income tax on net income.
the taxable year, and every other individual who maintains
a place of abode within the District for more than 183 days
The District of Columbia is precluded
Non-residents -- Not subject
of the taxable year, whether domiciled in the District or not.
from levying a non-resident income
to the income tax.
D.C. Code tit. 47, § 1801.4. Under an earlier District of
tax by Public Law 93-198, 602(a), 87
Columbia tax law, the Supreme Court held that whether or
Stat. 813; D.C. Code § 1-233(a)(5); §
Military personnel -- Not
not a person votes where he claims domicile is highly
47-1801.4.
subject to income tax on
relevant, but by no means controlling on the question
pensions or annuities up to
whether he is domiciled in the District of Columbia, nor is
See IRC § 104(a)(4).
$3000. D.C. Code § 47-1803.2
failure to vote elsewhere conclusive that domicile is in the
District. District of Columbia v. Murphy, 314 U.S. 441
(1941); see also District of Columbia v. Woods, 465 A.2d
385 (1983).
See Soldiers' and Sailors' Civil Relief Act.
Mississippi
Residents and non-residents --
The term “resident” is
The entire net income of residents.
Residents -- Subject to tax on
defined as any person domiciled in the state and any other
Miss. Code § 27-7-5. The entire net
their entire net income.
person who maintains a legal or actual residence within the
income of non-residents from sources
state. Miss. Code § 27-7-3(e).
within Mississippi. Miss. Code § 27-
Non-residents -- Subject to tax
7-15(3).
on their entire net income
The term “non-resident” is defined as any natural person
f r o m
s o u r c e s
w i t h i n
whose domicile and place of abode is without the state.
Mississippi
excludes
from
gross
Mississippi.
Miss Code § 27-7-3(f). The Mississippi Tax Regulations
income: (1) the first $500 per month
define “legal resident” as one who maintains a place of
received as compensation for active
Military personnel -- Not
abode in Mississippi or who exercises legal rights such as
service in a combat zone or during
subject to income tax on: (1)
voting.
One can be a legal resident though domiciled
hospitalization as a result of such
the first $500 per month
elsewhere.
Miss. Tax Reg.
1.27-7-3(5)(c); State Tax
service and; (2) hazardous duty combat
compensation
for
active
Commission of the State of Mississippi v. Earnest, 627
pay to members of the armed forces.
service in a combat zone or
So.2d 313 (1993).
Miss. Code § 27-7-15(4)(j), (n).
during hospitalization as a
result of such service and (2)
hazardous duty combat pay.

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PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Mississippi
The Mississippi Tax Regulations state that members of the
The entire income of spouses of
Spouses of military personnel
(Continued)
armed forces who claim Mississippi as their state of legal
military personnel of non-military pay
-- Subject to tax on non-
residence/domicile are liable for Mississippi income tax on
from sources within Mississippi is
military pay from sources
their income. Non-resident members of the armed forces
taxable. Miss. Tax Regs. § 1.27-7-
within Mississippi.
stationed in Mississippi who realize income from non-
15(34).
military sources within the state must file a non-resident
Individual Income Tax Return. Miss. Tax Regs. § 1.27-7-
15(34).
New
Taxes inhabitants or residents on interest and dividend
Interest and dividend income over
Inhabitants or residents --
Hampshire
income. N.H. Rev. Stat. Ann. § 77:3.
$2,400 per year. N.H. Rev. Stat. Ann.
Subject to tax on interest and
§ 77:5.
dividends over $2,400.
No mention is made of military
personnel.
New Jersey Residents -- “Residents” means (1) domiciliaries unless Residents -- New Jersey gross income Resident -- Subject to tax on
they maintain no permanent place of abode in the state,
as defined by statute. N.J. Stat. Ann. §
their entire New Jersey gross
maintain a permanent place of abode elsewhere, and spend
54A:5-1.
income.
an aggregate of not more than 30 days in the state or (2)
persons not domiciled in New Jersey who maintain a
Non-residents -- Specified categories
Non-residents -- Subject to tax
permanent place of abode in the state and spend an
of New Jersey gross income to the
on the specified categories of
aggregate of more than 183 days in the state, unless such
extent they are earned, received or
New Jersey gross income
individual is in the armed forces of the United States. N.J.
acquired from New Jersey sources.
from New Jersey sources.
Stat. Ann.§ 54A:1-2(m).
N.J. Stat. Ann. § 54A:5-8.
Military personnel -- Resident
- subject to tax on entire
income.

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PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
New Jersey
Non-residents -- “Non-resident” means a taxpayer who is
New Jersey excludes from gross
Non-resident -- not subject to
(Continued)
not a resident. N.J. Stat. Ann.§ 54A:1-2(n).
income: (1) pensions and annuities for
tax
on
military
income.
personal injuries or sickness resulting
Subject to tax on specified
from active service in the armed forces
New Jersey gross income
of the United States; (2) compensation
from New Jersey sources.
for service in the armed forces of the
United States to an individual not
domiciled
in
New
Jersey;
(3)
mustering-out payments to members of
the armed forces of the United States;
and military pensions and survivor
benefit payments. N.J. Stat. Ann. §§
54A:6-6, 6-7, and 6-26.
Tennessee
Persons in the state -- The term “person” is defined as every
(1) The income of persons in the State
Persons in the state -- Subject
natural person, inhabitant, resident (any person who has a
from dividends on stock and interest
to tax on dividends from stock
legal domicile in Tennessee), and every person who
on bonds. Tenn. Code Ann. § 67-2-
and interest on bonds.
maintains a place of residence for more than six months in
102.
the tax year (regardless of what place such person may
Resident military -- Subject to
claim as legal domicile). Tenn. Code § 67-2-101(5).
No interest or penalties may be
tax on dividends from stock
assessed
against
service
member
and interest on bonds.
serving in combat zone or hospitalized
as result of injury in a combat zone.
Tenn. Code § 67-2-114(a).

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II. States Granting an Income Tax Credit for Foreign Income Tax Paid
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Arizona
Residents and certain non-residents -- The term “resident”
The entire taxable income of every
Residents -- Subject to tax on
includes: (1) every individual who is in the state for other
resident and the entire taxable income
entire net income with §§ 911-
than a temporary or transitory purpose, and (2) every
of every non-resident which is derived
912 and § 112 exclusions and
individual domiciled in the state who is outside the state
from sources within the state. Ariz.
the possibility of receiving a
for a temporary or transitory purpose. Every individual
Rev. Stat. Ann. § 43-1011.
Since
credit for foreign taxes paid.
who spends in the aggregate more than nine months of the
Arizona computes its own taxable
taxable year within the state is presumed to be a resident.
income from federal adjusted gross
Non-residents -- Subject to tax
Ariz. Rev. Stat. Ann. §§ 43-104(14), 43-104(19).
income, the exclusions under §§ 911-
on net income derived from
912 of the IRC for income from
sources within Arizona with
See Soldiers' and Sailors' Civil Relief Act. 50 U.S.C.
sources without the United States are
the possibility of receiving a
App. § 574.
apparently adopted by
into the
credit for foreign taxes paid on
computation
of
Arizona
taxable
such income.
income. Any combat pay not already
excluded by § 112 of the IRC is
specifically excluded . Ariz. Rev. Stat.
Ann. § 43-1022(19).
Residents are allowed a credit only for
taxes paid to the other state or country
on income derived from sources within
that state or country which is taxable
under the foreign laws without regard
to the residence or domicile of the
recipient. No credit is allowed if the
other state or country allows residents
of Arizona a credit against taxes
imposed by that state or country for
taxes paid to Arizona. Ariz. Rev. Stat.
Ann. § 43-1071.

CRS-9
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Arizona
Non-residents are allowed a credit
(Continued)
against Arizona taxes on income
derived from sources within Arizona
only if (1) the foreign country does not
tax income of residents of Arizona
derived from sources within that
country or (2) allows residents of
Arizona credit against taxes imposed
by that country on such income for
taxes paid to Arizona. Ariz. Rev. Stat.
Ann. § 43-1096.
Hawaii
Residents and certain non-residents -- A “resident” is
The entire income of all residents. The
Residents -- Subject to tax on
defined as every individual who resides in the state for
income received or derived from
all income with § 911 and §
other than a temporary or transitory purpose.
Every
property owned, personal services
112 exclusions, and with the
individual who is in the state more than 200 days of the
performed, trade or business carried
possibility of a credit for
taxable year in the aggregate is presumed to be a resident.
on, and any and every other source in
foreign taxes paid.
This presumption may be overcome by evidence
the state by a non-resident. Haw. Rev.
satisfactory to the Department of Taxation that the
Stat. § 235-4(a), (b). Because Hawaii
Non-residents -- Subject to tax
individual maintains a permanent place of abode outside
computes its own taxable income from
on
income
derived
from
of the state and is in the state for a temporary or transitory
federal adjusted gross income, the
sources within Hawaii, with
purpose. No person shall be deemed to have gained or
exclusions under § 911 of the IRC for
the possibility of a credit for
lost a residence simply because of his presence or absence
income from sources without the
foreign taxes paid.
in compliance with military or naval orders. Haw. Rev.
United States are apparently adopted
Stat. § 235-1.
into the computation of Hawaii taxable
Military personnel -- Subject
income. Section 912 exclusions are
t o
t a x
o n
m i l i t a r y
specifically added back into Hawaii
compensation
with
the
adjusted gross income. Haw. Rev. Stat.
exclusion of combat pay.
§ 235-7(b).

CRS-10
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Hawaii
Residents are allowed a credit for taxes
(Continued)
paid to an other state or country, which
are paid on income derived from
sources outside the state. The credit is
not allowed for taxes paid on income
excluded under § 911. Haw. Rev.
Stat. § 235-55(a).
Because Hawaii computes its own
taxable income from federal adjusted
gross income, the exclusion under §
112 of the IRC for compensation
received for active service as a
member of the armed forces of the
United States for any month during
which such member served in a
combat zone or was hospitalized as a
result of an injury incurred in such
service is apparently incorporated into
the computation of Hawaii taxable
income.
The first $1,750 of income to members
of the armed forces reserves is also
excluded from gross income. Haw.
Rev. Stat. § 235-7(a)(7)

CRS-11
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Indiana
Residents and non-residents -- The term “resident” is
The entire federal adjusted income of
Residents -- Subject to tax on
defined as any individual who was domiciled in the state
residents, with adjustments not herein
federal adjusted gross income
during the taxable year, or any individual who maintains
relevant. Ind. Stat. § 6-2.1-2-2.
(above the exclusions under
a permanent place of residence in the state and spends
§§ 911-912 of the IRC) with
more than 183 days of the taxable year within the state.
Since Indiana computes its own
the possibility of a credit for
Ind. Stat. § 6-3-1-12.
taxable income from federal adjusted
foreign taxes paid.
gross income, the exclusions under §§
The term “non-resident” is defined as any person who is
911-912 of the IRC for income from
Non-residents -- Subject to tax
not a resident of Indiana. Ind. Stat. § 6-3-1-13.
sources without the United States are
on federal adjusted gross
apparently
adopted
into
the
income derived from sources
See Soldiers' and Sailors' Civil Relief Act.
computation
of
Indiana
taxable
within
Indiana,
with
the
income. Ind. Stat.§ 6-2.1-2-2. The
possibility of a credit for
federal adjusted gross income of non-
foreign taxes paid.
residents derived from sources within
Indiana. Ind. Stat. § 6-2.1-2-2.
Military
personnel
and
merchant marine -- Subject to
Indiana also gives its residents and
tax on military compensation
non-residents a credit against Indiana
with stated exclusions.
income tax for taxes paid to another
state or foreign country on income
subject to tax in Indiana. Ind. Stat. §§
6-3-3-3, 6-3-1-25.
Indiana allows a deduction of $2,000
per year from adjusted gross income
for individuals who are members of
the
United
States
armed
forces.
Military retirees over 60 years of age
may deduct $2,000 in retirement or
survivors' benefits. Ind. Stat. § 6-3-2-
4.

CRS-12
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Iowa
Residents and non-residents -- The term “resident” is
The entire income of the residents
Residents -- Subject to tax on
defined as any individual domiciled in the state, and any
defined as federal adjusted gross
federal adjusted gross income
other individual who maintains a permanent place of
income, with certain adjustments not
(above the exclusions under
abode with the state. Iowa Code § 422.4(15). The term
herein relevant. Iowa Code § 422.7.
§§ 911-912 of the IRC) with
“non-resident” includes all individuals who are not
Since Iowa computes its own net
the possibility of a credit for
residents. Iowa Code § 422.4(10).
income from federal adjusted gross
foreign taxes paid.
income, the exclusions under §§ 911-
The Iowa tax regulations state that unless there is
912 of the IRC for income from
Non-residents -- Subject to tax
evidence to the contrary, one will be presumed to be
sources without the United States are
on federal adjusted gross
domiciled in the state if he or she exercises the right to
apparently
adopted
into
the
income derived from sources
vote, uses homestead credit or military exemption, or
computation of Iowa net income.
within
Iowa,
with
the
otherwise exercises his or her rights to suffrage. Iowa
possibility of a credit for
Tax Regs. subrule 38.1(9); In the Matter of Fox, 1996
The net income of non-residents
foreign taxes paid.
Iowa Tax LEXIS 1996.
derived from sources within Iowa.
Iowa Code §§ 422.5(j); 422.8(2).
Military personnel -- Subject
See Soldiers' and Sailors' Civil Relief Act.
t o
t a x
o n
m i l i t a r y
Iowa also provides a credit against
compensation
with
stated
Iowa tax for taxes paid to another state
exclusions.
or foreign country on income subject
to tax in Iowa. Iowa Code § 422.8(1).
Since Iowa computes its own taxable
income from federal adjusted gross
income, the exclusion under § 112 of
the IRC for compensation received for
active service as a member of the
armed forces of the United States for
any month during which such member
served in a combat zone or was
hospitalized as a result of an injury
incurred in such service is apparently
adopted
into computation of Iowa
taxable income. Iowa Code § 422.7

CRS-13
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Maine
Residents and non-residents -- The term “resident” is
The taxable income of residents is
Residents -- Subject to tax on
defined as an individual who is domiciled in Maine; or
defined as federal adjusted gross
taxable income in excess of
who is not domiciled in Maine, but maintains a permanent
income allocated to state sources with
the exclusions under §§ 911-
place of abode in Maine and spends in the aggregate more
certain
modifications
not
herein
912 of the IRC with the
than 183 days of the taxable year in this state, unless he is
relevant. Since Maine computes its
possibility of a reduction of
in the armed forces of the United States. Me. Rev. Stat.
own taxable income from federal
taxes for taxes paid to another
tit. 36 § 5102.
adjusted gross income, the exclusions
jurisdiction.
under §§ 911-912 of the IRC for
The term “non-resident” is defined as an individual who
income from sources without the
Non-residents -- Subject to tax
is not a resident. Me. Rev. Stat. tit. 36 § 5102.
United States are apparently adopted
on the portion of federal
into the computation of Maine taxable
adjusted gross income derived
See Soldiers' and Sailors' Civil Relief Act.
income. Me. Rev. Stat. tit. 36 § 5121.
from sources within Maine
with the possibility of a
The portion of federal adjusted gross
reduction in taxes for taxes
income of non-residents derived from
paid to another jurisdiction.
sources within the state.
Me. Rev.
Stat. tit. 36 § 5142.
Military personnel -- Subject
t o
t a x
o n
m i l i t a r y
A resident is allowed a tax credit for
compensation
with
stated
taxes paid to another state or foreign
exclusions.
country.
Me. Rev. Stat. tit. 36 §
5217A.
If a taxpayer is regarded as a resident
of Maine and another jurisdiction for
the
purpose
of
personal
income
taxation, the tax assessor shall reduce
the tax on that portion of the taxpayer's
income which is subjected to tax in
both jurisdictions, provided that the
other taxing jurisdiction allows a
similar reduction. Me. Rev. Stat. tit.
36 § 5128.
Since Maine computes its own taxable
income from federal adjusted gross

CRS-14
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Maine
the IRC for compensation received for
(Continued)
active service as a member of the
armed forces of the United States for
any month during which such member
served in a combat zone or was
hospitalized as a result of an injury
incurred in such service is apparently
adopted
into the computation of
Maine taxable income. Me. Rev. Stat.
tit. 36 § 5121.

CRS-15
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Massa-
Residents and certain non-residents -- The term “resident”
The taxable income of residents
Residents -- Subject to tax on
chusetts
or inhabitant is defined as (1) any natural person
defined as federal adjusted gross
federal adjusted gross income
domiciled in the Commonwealth or (2) a non-domiciled
income. However, Massachusetts does
without the exclusion under §
natural person who has a permanent place of abode and
not allow the exclusion of income
911 of the IRC for income
spends over one hundred and eighty three days in the
from sources without the United States
derived from sources without
Commonwealth. The term “non-resident” is defined as
in the computation of Massachusetts
the United States. A credit for
any natural person whose domicile is outside the
taxable income. Mass. Gen. L. Ann.
taxes paid to other states or
Commonwealth. Mass. Gen. L. Ann. ch. 62, § 1(f).
ch. 62 § 2(a)(1)(C).
Massachusetts
Canada or its provinces is
allows a credit for taxes paid to other
allowed.
The Massachusetts Board of Tax Appeals has ruled that
states or the Dominion of Canada or
change of domicile from the Commonwealth to a foreign
any of its provinces, with certain
Non-residents -- Subject to tax
country requires greater proof of intent to abandon
limitations. Mass. Gen. L. Ann. ch. 62
on the portion of federal
domicile than a change of domicile between states of the
§ 6(a).
adjusted gross income derived
United States. Farr v. Commissioner, 1 Mass. B.T.A. 467
f r o m
s o u r c e s
w i t h i n
(1932).
The portion of federal adjusted gross
Massachusetts.
income of non-residents derived from
See Soldiers' and Sailors' Civil Relief Act.
sources within Massachusetts. Mass.
M i l i t a r y
p e r s o n n e l - -
Gen. L. Ann. ch. 62 § 5A(a).
Compensation paid to military
personnel for active duty shall
The compensation paid to military
be deemed to be from sources
personnel for active duty shall be
other than sources within the
deemed to be from sources other than
Commonwealth.
sources within the Commonwealth.
Mass. Gen. L. Ann. ch. 62 § 5A(c).

CRS-16
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Montana
Residents and non-residents -- The term “resident” is
(1) The entire adjusted gross income of
Residents -- Subject to tax on
defined as any natural person domiciled in the state or
residents defined as federal adjusted
federal adjusted gross income
who maintains a permanent place of abode within the
g r o s s
i n c o m e
w i t h
c e r t a i n
above the exclusion of §§ 911-
state even though temporarily absent from the state and
modifications not herein relevant.
912 of the IRC. Foreign credit
who has not established a residence elsewhere. Mont.
Since Montana defines its adjusted
is allowed.
Code tit. 15 § 30-101(16).
gross income in terms of federal
adjusted gross income, the exclusions
Non-residents -- Subject to tax
See Soldiers' and Sailors' Civil Relief Act.
under §§ 911-912 of the IRC for
on net income derived from
income from sources without the
sources within Montana.
United States are apparently adopted
into the computation of Montana
Military personnel -- Not
adjusted gross income. Mont. Code tit.
subject to tax on military
15 § 30-111.
compensation.
(2) The entire earned income of non-
residents derived from sources within
Montana. Mont. Code tit. 15 § 30-131.
(3) Montana excludes remuneration
paid for active service as a member of
the armed forces of the United States
from the definition of taxable wages
for residents. Mont. Code tit. 15 § 30-
116(2).
Residents are allowed a credit for taxes
paid
to
other
states
or
foreign
countries. Mont. Code tit. 15 § 30-
124.

CRS-17
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
New Mexico
Residents and non-residents -- The term “resident” is
(1) The net income of every resident
Residents -- Subject to tax on
defined as an individual who is domiciled in the state
defined in terms of federal taxable
net
income
above
the
during any part of the taxable year. Any person who, on
income with certain modifications not
exclusions under §§ 911-912
or before the last day of the taxable year, changes his
herein relevant. Since New Mexico
of the IRC with the possibility
place of abode to a place without the state with the bona
defines its tax base in terms of federal
of a credit for taxes paid to
fide intention of continuing actually to abide permanently
taxable income, the exclusions under
another state.
without the state is not a resident. N. Mex. Stat.§ 7-2-
§§ 911-912 of the IRC for income
2(S).
derived from sources without the
Non-residents -- Subject to tax
United States are apparently adopted.
on net income derived from
The term “non-resident” is defined as every individual not
N. Mex. Stat. § 7-2-3.
sources within New Mexico.
a resident of the state. N. Mex. Stat.§ 7-2-2(Q).
(2) The net income of every non-
Military personnel -- Subject
See Soldiers' and Sailors' Civil Relief Act.
resident derived from sources within
t o
t a x
o n
m i l i t a r y
New Mexico. N. Mex. Stat. § 7-2-3.
compensation
with
stated
New Mexico defines “state” to include
exclusions.
foreign country. N. Mex. Stat. § 7-2-
2(U).
(3) New Mexico also allows residents
a credit for taxes paid to another state.
N. Mex. Stat. § 7-2-13.
Since New Mexico computes its own
taxable income from federal adjusted
gross income, the exclusion under §
112 of the IRC for compensation
received for active service as a
member of the armed forces of the
United States for any month during
which such member served in a
combat zone or was hospitalized as a
result of an injury incurred in such
service is apparently adopted into the
computation of New Mexico taxable
income. N. Mex. Stat. § 7-2-2.

CRS-18
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
North
Residents and non-residents -- The term “resident” is
(1) The net income of residents as
Residents -- Subject to tax on
Carolina
defined as an individual who is domiciled in the state for
defined under N.C. Gen. Stat. § 105-
net income with the possibility
other than a temporary or transitory purpose. Absent
134.5(a). Because North Carolina
of a tax credit for taxes paid to
other evidence, residence in the state for over 183 days of
defines its adjusted gross income in
another
state
or
foreign
the taxable year raises the presumption that the individual
terms of federal adjusted gross income,
country.
is a resident. N.C. Gen. Stat. § 105-134.1(12).
the exclusions under §§ 911-912 of the
IRC for income from sources without
Non-residents -- Subject to tax
The term “non-resident” is defined as any individual who
the United States are apparently
on net income derived from
is not a resident. N.C. Gen. Stat. § 105-134.1(9).
adopted into the computation of North
sources within North Carolina.
Carolina adjusted gross income
See Soldiers' and Sailors' Civil Relief Act.
Military personnel -- Subject
(2) The net income of non-residents
t o
t a x
o n
m i l i t a r y
for income derived from sources
compensation.
within North Carolina. N.C. Gen. Stat.
§ 105-134.5(b).
North Carolina allows its residents a
credit against taxes paid to another
state or foreign a country in certain
instances. N.C. Gen. Stat. § 105-151.

CRS-19
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Oregon
Residents and non-residents -- The term “resident” is
(1) The entire taxable income of
Residents -- Subject to tax on
defined as: (1) an individual who is domiciled in this state
residents defined as federal taxable
federal taxable income above
unless he (A) maintains no permanent place of abode in
income with certain modifications not
the exclusions under § 911-
this state, (B) does maintain a permanent place of abode
herein relevant. Since Oregon defines
912 of the IRC and with the
elsewhere, and (C) spends in the aggregate not more than
its own taxable income in terms of
possibility of a credit for
30 days in the taxable year in this state; or (2) an
federal taxable income, the exclusions
foreign taxes paid.
individual who is not domiciled in this state, but
under §§ 911-912 of the IRC for
maintains a permanent place of abode in this state and
income from sources without the
Non-residents -- Subject to tax
spends in the aggregate more than 200 days of the taxable
United
States
are
apparently
on federal taxable income
year in this state, unless he proves that he is in the state
incorporated into the computation of
derived from sources within
only for a temporary or transitory purpose. Ore. Rev.
Oregon taxable income.
Ore. Rev.
Oregon.
Stat. § 316.027(1)(a), (b).
Stat. §§ 316.007, 316.037.
Military personnel -- Subject
A non-resident is an individual who is not a resident. Ore.
(2) The taxable income of non-
t o
t a x
o n
m i l i t a r y
Rev. Stat. § 316.022(4).
residents derived from sources within
compensation above the first
Oregon. Ore. Rev. Stat. §§ 316.117,
$3,000.
316.127.
Oregon also gives to residents a credit
against Oregon income taxes for taxes
imposed on the taxpayer by another
state. Ore. Rev. Stat. § 316.082.
A modified foreign tax credit is
allowed. Ore. Rev. Stat. § 316.690.
(3) Oregon subtracts from federal
taxable income the first $3,000 of
income compensation (other than
pension or retirement pay) for active
service in the Armed Forces of the
United States. All compensation for
the initial and concluding years of
active service in the Armed Forces of
the United States is deducted from
adjusted gross income. Ore. Rev.

CRS-20
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Pennsylvania Residents and non-residents -- The term “resident” is (1) The entire income of residents Residents -- Subject to tax on
defined to include both (1) domiciliaries, unless the
defined under Pa. Stat. tit. 72 § 7303.
income with a credit for taxes
domiciliary maintains no permanent place of abode
paid to another state or foreign
within the Commonwealth, maintains a permanent place
(2) The income of non-residents
country
on
income
also
of abode outside the Commonwealth and resides within
derived
from
sources
within
subject to tax in Pennsylvania.
the Commonwealth for less than thirty days of the taxable
Pennsylvania. Pa. Stat. tit. 72 § 7303.
year, and (2) non-domiciliaries maintaining a permanent
Non-residents -- Subject to tax
place of abode within the Commonwealth for more than
Pennsylvania allows residents a credit
on
income
from
sources
183 days of the taxable year. Pa. Stat. tit. 72 § 7301(p).
for taxes paid to another state or
within Pennsylvania.
foreign country on income also subject
“Non-resident” is defined as any individual who is not a
to tax in Pennsylvania. Pa. Stat. tit. 72
Military personnel -- Subject
resident. Pa. Stat. tit. 72 7301(m).
§§ 7301(t), 7314.
to tax on military income
except for compensation for
See Soldiers' and Sailors' Civil Relief Act.
Military compensation for active duty
active duty performed outside
performed outside of Pennsylvania is
of Pennsylvania.
exempt from taxation. Pa. Stat. tit. 72
§ 7303(a)(1).

CRS-21
III. States Exempting Income Earned Abroad to the Same Extent as Federal Law
(Sections 911 - 912 of the IRC)
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Arkansas
Residents and non-residents -- The term “resident” is
The entire income of every resident as
Residents-- Subject to state
defined to include any natural person domiciled in the state
defined by the statute. Ark. Code Ann.
income taxation on federal
and any natural person who maintains a permanent place of
§ 26-51-201(a).
adjusted gross income (above
abode in the state and spends in the aggregate more than six
the exclusions under §§ 911-
months of the taxable year within the state. Ark. Code Ann.
The exclusion and allowance of IRC
912 of the IRC).
§ 26-51-102(9).
§§ 911 & 912 as they were in effect on
January 1, 1989 are specifically
Non-residents -- Subject to
The Arkansas Tax Regulations state that a domicile does
adopted for purposes of computing
state income tax on all net
not end by physical absence alone and is presumed to
Arkansas income tax. Ark. Code Ann.
income from sources within
continue until a new domicile is legally established. The
§ 26-51-310.
the state as previously defined.
regulations contain a fact sheet listing the various factors to
be taken into consideration in determining whether a new
The entire net income of non-residents
Resident military personnel --
domicile has been established. The elements of a new
from all property owned, and from
Subject to state income tax on
domicile on the fact sheet include: voter registration and
every business, trade or occupation
entire income except for the
exercise of suffrage during the last three elections, domicile
carried on in Arkansas.
Ark. Code
first $6,000 of service pay.
of birth, physical presence, expressed intention, family
Ann. § 26-51-202(a).
Combat pay is exempt and all
residence, duty causing absence from Arkansas, state
income in the year of death in
licenses, location of substantial real and property holdings,
Resident military personnel taxable on
combat is exempt.
community affiliations, business interests, bulk or necessary
all income except for the first $6,000
purchases, utility or telephone deposits, and local taxes and
of service pay. Ark. Code Ann. § 26-
licenses.
Ark. Tax. Reg., Art. 1.84-2002(10).
The
51-306(a)(1). Non-resident military
Arkansas Tax Regulations state that any resident member of
personnel taxable on net income from
the armed forces who at the time of the induction into such
non-military sources earned within the
service was a resident of this state, continues to be a
state. Ark. Code Ann. § 26-51-306(b).
resident of this state, even though he or she has been
inducted into the armed service outside of the state and does
IRC §§ 112 and 692, concerning
not return to the state until after such service is ended. A
taxation of combat pay and pay of
member of the armed service who at the time of induction
military personnel for the year they die
was a resident in any state other than Arkansas is for
in combat, are adopted and these types
income tax purposes a non-resident even though he was
of income are not included in the
inducted into the service within Arkansas and he remains in
$6,000 exemption. Ark. Code Ann. §

CRS-22
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
the service within Arkansas. Ark. Tax. Reg., Art. 1.84-
26-51-306(a)(4).
2010.
Colorado
Resident individuals and non-residents -- The term
The entire federal adjusted gross
Resident individuals -- Subject
“resident” individual means a natural person who maintains
income of resident individuals, with
to state income taxation on
a permanent place of abode within the state and who spends
certain
modifications
not
herein
federal adjusted gross income
in the aggregate more than six months of the taxable year
relevant. Colo. Rev. Stat. § 39-22-104.
(above the exclusions under
within the state. A “non-resident” individual means an
Since Colorado computes its own
§§ 911-912 of the IRC).
individual other than a resident individual. Colo. Rev. Stat.
taxable income from federal adjusted
§ 39-22-103(8).
gross income, the exclusions under §§
Non-resident individuals --
911-912 of the IRC for income from
Subject to state income tax on
The Colorado Tax Regulations state that domicile is a
sources without the United States and
federal adjusted gross income
factual matter and that the individual's intent controls. The
the exclusion under § 112 of the IRC
attributable to sources within
Regulations also state that domicile, once established, is not
for compensation received for active
Colorado.
lost until a new domicile is established. Colo. Rev. Stat. §
service as a member of the armed
39-22-103(8).
forces of the United States for any
Military personnel -- Subject
month during which such member
to tax on military pay with
See Soldiers' and Sailors' Civil Relief Act.
served in a combat zone are apparently
stated exclusions.
adopted into the computation of
Colorado taxable income. Colo. Rev.
Stat. § 39-22-104.
The entire federal adjusted gross
income of non-resident individuals
derived from sources within Colorado.
Colo. Rev. Stat. § 39-22-109.
For purposes of determining income
tax liability, Colorado disregards the
time period during which an individual
is a member of the armed forces of the
United States:

CRS-23
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Colorado
(1) commencing with a declaration of
(Continued)
war by Congress and ending twelve
months after the termination of the
war; and (2) when an individual is
serving in an area designated as a
combat zone and a period of one
hundred and eighty days after such
service. Colo. Rev. Stat. § 39-22-610.
Colorado subtracts retirement pay,
pensions and annuities of members of
the armed forces to the extent included
in federal adjusted gross income not
to exceed $24,000 in any one taxable
year. Colo. Rev. Stat. § 39-22-104(f).

CRS-24
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Connecticut Residents -- “Resident” means (1) domiciliaries unless they The entire federal adjusted gross Resident individuals -- Subject
maintain no permanent place of abode in the state, maintain
income of resident individuals, with
to state income taxation on
a permanent place of abode elsewhere and spend in the
certain
modifications
not
herein
federal adjusted gross income
aggregate not more than 30 days of the taxable year in the
relevant. Conn. Gen. Stat. Ann. §§ 12-
(above the exclusions under
state and (2) non-domiciliaries who maintain a permanent
700 and 701(a)(19) & (20).
§§ 911-912 of the IRC).
place of abode in the state and are in the state for an
aggregate of more than 183 days. Conn. Gen. Stat. Ann. §
Since Connecticut computes its own
Non-resident individuals --
12-701(a)(1).
taxable income from federal adjusted
Subject to state income tax on
gross income, the exclusions under §§
federal adjusted gross income
“Non-resident” is defined as any individual who is not a
911-912 of the IRC for income from
attributable to sources within
resident. Conn. Gen. Stat. Ann. § 12-701(a)(2).
sources without the United States and
Connecticut.
the exclusion under § 112 of the IRC
See Soldiers' and Sailors' Civil Relief Act.
for compensation received for active
Military personnel -- Subject
service as a member of the armed
to tax on military pay with
forces of the United States for any
stated exclusions.
month during which such member
served in a combat zone are apparently
adopted into the computation of
Connecticut taxable income.
Conn.
Gen. Stat. Ann. § 12-700.
The entire federal adjusted gross
income of non-resident individuals
derived
from
sources
within
Connecticut. Conn. Gen. Stat. Ann. §
12-700.

CRS-25
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Delaware
Resident individuals and non-resident individuals.
A
The entire taxable income of every
Resident
individuals
--
“resident individual” is defined as one who is domiciled in
resident individual defined as such
Subject
to
state
income
the state for any part of the taxable year to the extent of the
individual's federal adjusted gross
taxation on federal adjusted
period of such domicile; or maintains a place of abode in
income with certain modifications not
gross
income
(above
the
the state and spends more than 183 days of the taxable year
herein relevant. Del. Code Ann. §§
exclusions under §§ 911-912
in the state. Del. Code Ann. § 30-1103.
30-1102 and 30-1105.
of the IRC).
A “non-resident individual” is defined as one who is not a
Since Delaware computes its own
Non-resident individuals --
resident individual of the state. Del. Code Ann. § 30-1104.
taxable income from federal adjusted
Subject to state income tax on
gross income, the exclusions under §§
federal adjusted gross income
The Delaware Superior Court has held that an individual
911-912 of the IRC for income from
attributable to sources within
who had moved to Washington, D.C. to take employment,
sources without the United States and
Delaware.
but who continued to vote in Delaware had abandoned his
the exclusion under § 112 of the IRC
Delaware domicile. The court found that the voting, which
for compensation received for active
Military personnel -- Subject
it termed "illegal," did not prove Delaware domicile.
service as a member of the armed
t o
t a x
o n
m i l i t a r y
Mitchell v. Delaware State Tax Commissioner, 42 A.2d 19
forces of the United States for any
compensation
with
stated
(Del. Supr. Ct. 1945).
month during which such member
exclusions.
served in a combat zone are apparently
See Soldiers' and Sailors' Civil Relief Act.
adopted into the computation of
Delaware taxable income.
The taxable income of a non-resident
individual defined as that part of his
federal adjusted gross income derived
from sources within the State. Del.
Code Ann. § 30-1102(a).

CRS-26
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Georgia
Residents and taxable non-residents -- The term “resident”
The taxable net income of all residents
Residents -- Subject to tax on
is defined to include "legal residents" of the state on
defined as federal adjusted gross
federal adjusted gross income
December 31 of the taxable year in question, persons
income less items not herein relevant.
(above the exclusions under
residing in the state on a "more or less regular basis" on
Since Georgia computes its own
§§ 911-912 of the IRC).
December 31 of the taxable year under consideration, and
taxable net income on the basis of
persons residing in the state in the aggregate for 183 days or
federal adjusted gross income, the
Taxable
non-residents
--
part-days for the taxable year. Ga. Code § 48-7-1(10).
exclusions under §§ 911-912 of the
Subject to tax on net taxable
IRC for income from sources without
income derived from certain
“Taxable non-residents” are defined to include the
the United States are apparently
specified
activities
within
following: (1) every individual who is not otherwise a
adopted into the computation of
Georgia.
resident of Georgia for income tax purposes and who
Georgia taxable net income. Ga. Code
regularly, and not casually or intermittently, engages within
§ 48-7-27.
Military personnel -- Subject
Georgia, himself or by means of employees, agents or
to tax as residents on federal
partners, in employment, trade, business, professional, or
The federal exclusion under § 112 of
adjusted gross income less
other activity for financial gain or profit, including the
the IRC for compensation received for
specified items.
rental of real or personal property located within Georgia or
active service as a member of the
for use within Georgia; and (2) every individual who is not
armed forces of the United States for
otherwise a resident of Georgia for income tax purposes and
any month during which such member
who sells, exchanges or otherwise disposes of tangible
served in a combat zone or was
property which at that time has a taxable situs within
hospitalized as a result of an injury
Georgia, or of intangible property which has acquired at the
incurred in such service is specifically
time a business or commercial situs within Georgia.
adopted into the computation of
"Taxable non-resident" as defined herein does not include
Georgia taxable income. Ga. Code §
a legal resident of another state whose only activity for
48-7-36.
financial gain or profit in Georgia consists of performing
services in Georgia for an employer where the remuneration
for such services does not exceed five percent of the income
received by such person for performing services in all
places during any taxable year; Ga. Code § 48-7-1(11)(A)
& (B).
See Soldiers' and Sailors' Civil Relief Act.

CRS-27
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Idaho
Residents, and part-year resident. The term “resident” is
Taxable income of residents defined as
Residents -- Subject to tax on
defined as any individual who during the taxable year has
taxable income under § 63 of the IRC.
federal taxable income (above
been domiciled in Idaho or has maintained an abode in
Since Idaho computes its taxable
the exclusions under §§ 911-
Idaho for the entire tax year and spent more than 270 days
income from federal taxable income,
912 of the IRC).
of that year in the state.
An individual will not be
§§ 911-912 of the IRC for income
considered a resident if during a 15 month period he is
from sources without the United States
Non-residents and part-year
absent from the state for at least 445 days, is not present in
are
apparently
adopted
into
the
residents -- Subject to tax on
the state for more than 60 days, did not maintain an abode
computation of Idaho taxable income.
federal
taxable
income
for his family in the state, was not absent to serve as an
Ida. Code 63-3022.
attributable to certain sources
elected official, and did not claim Idaho as his tax home for
within Idaho.
federal income tax purposes. Ida. Code § 63-3013.
The taxable income of non-residents
and part-year residents to the extent it
Military personnel -- Not
The term “part-year resident” is defined as an individual
is attributable to certain specified
subject to tax on active duty
who has changed his domicile either to or from Idaho and
activities within Idaho. Ida. Code §
compensation
for
services
who has resided in Idaho for over a day. Ida. Code § 63-
63-3026A.
performed outside of the state.
3013A .
Not subject to tax on active duty
The term “non-resident” is defined as any individual who is
compensation for services performed
not a resident or part-year resident. Ida. Code § 63-3014.
outside of the state, Ida. Code § 63-
3022(h), or retirement benefits, Ida.
See Soldiers' and Sailors' Civil Relief Act.
Code § 63-3022A(4).

CRS-28
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Illinois
Residents, part-year residents -- The term “resident” is
The entire federal adjusted gross
Residents -- Subject to tax on
defined as any individual who is in the state for other than
income of residents, with certain
federal adjusted gross income
a temporary or transitory purpose during the taxable year or
modifications not herein relevant.
(above the exclusions under
who is domiciled in the state, but is absent from the state for
Since Illinois computes its own base
§§ 911-912 of the IRC).
a temporary or transitory purpose during the taxable year.
income from federal adjusted gross
35 ILCS § 5/1501(20).
income, the exclusions under §§ 911-
Non-residents and part year
912 of the IRC for income from
residents -- Subject to tax on
The term “part-year resident” is defined as an individual
sources without the United States are
all income attributable to
who became a resident during the taxable year or ceased to
apparently
adopt ed
into
the
certain
activities
within
be a resident during the taxable year. 35 ILCS § 5/1501
computation of Illinois base income.
Illinois.
(17).
35 ILCS § 5/203.
Military personnel -- Illinois
The term “non-resident” is defined as a person who is not
All income of part-year residents and
deducts from gross income
a resident. 35 ILCS § 5/1501 (14).
non-residents attributable to certain
any compensation paid to a
activities within Illinois. 35 ILCS §§
resident who is a member of
See Soldiers' and Sailors' Civil Relief Act.
5/301, 304.
the armed forces while on
active duty.
Illinois deducts from gross income any
compensation paid to a resident who is
Military retirees are not taxed
a member of the armed forces of the
on retirement or disability
United States while on active duty. 35
income.
ILCS § 5/203(a)(2)(E). Compensation
received by any resident under any
governmental retirement or disability
plan is also deducted from gross
income. 35 ILCS § 5/203(a)(2)(F).

CRS-29
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Kansas
Resident individuals and non-residents -- A“resident
(1) The taxable income of a resident
Residents -- Subject to tax on
individual” is defined as a natural person who is domiciled
individual defined as such individual's
federal adjusted gross income
in the state. A natural person who spends in the aggregate
federal adjusted gross income for the
above the exclusions under §§
more than six months of the taxable year within the state is
t a x a b l e
y e a r ,
w i t h
c e r t a i n
911-912 of the IRC.
presumed to be a resident. Kan. Stat. Ann. § 79-32, 109(b).
modifications not herein relevant.
Kan. Stat. Ann. § 79-32, 110.
Non-residents -- Subject to tax
The term “non-resident” is defined as an individual other
on that portion of federal
than a resident individual. Kan. Stat. Ann. § 79-32, 109(b).
(2) The taxable income of non-resident
adjusted gross income derived
individuals defined as that portion of
from sources within Kansas.
The Kansas tax regulations state that voting is prima facie
federal adjusted gross income derived
evidence of domicile in Kansas. Kan. Tax Reg. 92-12-4.
from sources within Kansas.
Kan.
Military personnel -- Subject
Stat. Ann. § 79-32, 110.
t o
t a x
o n
m i l i t a r y
See Soldiers' and Sailors' Civil Relief Act.
compensation
with
stated
Since Kansas computes its own taxable
exclusions.
income from federal adjusted gross
income, the exclusions under §§ 911-
912 of the IRC for income from
sources with the United States and the
exclusion under § 112 of the IRC for
compensation
received
for
active
service as a member of the armed
forces of the United States for any
month during which such member
served in a combat zone or was
hospitalized as a result of an injury
incurred in such service are apparently
adopted
into the computation of
Kansas taxable income.

CRS-30
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Kentucky
Residents and non-residents -- The term “resident” is
(1) The entire net income of every
Residents -- Subject to tax on
defined as an individual domiciled within the state or an
resident individual defined as such
federal adjusted gross income
individual who is not domiciled in the state, but maintains
individual's federal adjusted gross
(above the exclusions under
a place of abode in the state and spends in the aggregate
income with certain modifications not
§§ 911-912 of the IRC).
more than 183 days of the taxable year within the state. Ky.
herein relevant.
Ky. Rev. Stat. §
Rev. Stat.§ 141.010(17).
141.020(1).
Non-residents -- Subject to tax
on federal adjusted gross
The term “non-resident” is defined as any individual who is
(2) That portion of federal adjusted
income derived from sources
not a resident of the state. Ky. Rev. Stat. § 141.010(18).
gross income of non-residents derived
within Kentucky.
The Kentucky tax regulations specify that an individual
from sources within Kentucky. Ky.
who is permitted to file a federal income tax return as a
Rev. Stat. § 141.020(4).
Military personnel -- Subject
non-resident citizen, and who immediately prior to residing
t o
t a x
o n
m i l i t a r y
in a foreign country was domiciled in Kentucky, is
Since Kentucky computes its own
compensation
with
stated
considered a Kentucky resident and must file a resident
taxable income from federal adjusted
exclusions.
individual income tax return. Ky. Tax Reg. 103 KAR
gross income, the exclusions under §§
17:010.
See also, the following two opinions of the
911-912 of the IRC for income from
Kentucky Attorney General relating to this subject: Op.
sources without the United States and
Atty. Gen. Ky. (July 12, 1939); Op. Atty. Gen. Ky. (May
the exclusion under § 112 of the IRC
12, 1960).
for compensation received for active
service as a member of the armed
See Soldiers' and Sailors' Civil Relief Act.
forces of the United States for any
month during which such member
served in a combat zone or was
hospitalized as a result of an injury
incurred in such service are apparently
adopted into the computation of
Kentucky taxable income. Ky. Rev.
Stat. § 141.020.

CRS-31
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Louisiana
Residents and non-residents -- The term “resident” is
The entire federal adjusted gross
Residents -- Subject to tax on
defined as every natural person domiciled in the state, and
income of resident individuals, with
federal adjusted gross income
every other natural person who maintains a permanent place
certain
modifications
not
herein
above the exclusions under §§
of abode within the state or who spends in the aggregate
relevant. La. Rev. Stat.§ 47-293.
911-912 of the IRC.
more than six months of the taxable year within the state.
La. Rev. Stat. § 47-31.
Since Louisiana computes its own
Non-residents -- Subject to tax
taxable income from federal adjusted
on net income derived from
The Louisiana Tax Regulations state that domicile is a
gross income, the exclusions under §§
sources within Louisiana.
factual determination of intent to remain in or return to
911-912 of the IRC for income from
Louisiana. Examples in the Regulations indicate that an
sources without the United States are
Resident military personnel --
individual may spend large portions of his or her time
apparentl y
adopted
into
the
Subject to tax on military
outside of Louisiana without relinquishing domicile. La.
computation of Louisiana taxable
compensation
except
for
Inc. Tax Regs. 31.2.
income. La. Rev. Stat. § 47-293(6).
pensions
or
annuities
for
personal injuries or sickness
See Soldiers' and Sailors' Civil Relief Act.
incurred in the armed forces.
The net income of non-residents
earned or derived from sources within
N o n - r e s i d e n t
m i l i t a r y
the state. La. Rev. Stat. §§ 47-241,
personnel -- Subject to tax on
and 47-293(7).
non-military pay from sources
within Louisiana.
The
gross
income
of
military
personnel does not include pensions or
annuities for sickness incurred in the
armed forces.
La. Rev. Stat. § 47-
46(4).
Military
pay
of
non-resident
servicemen stationed within Louisiana
is not taxable by Louisiana.
See
Soldiers' and Sailors' Relief Act,
supra.

CRS-32
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Maryland
Residents and non-residents -- The term “resident” is
(1) The taxable net income of residents
Residents -- Subject to tax on
defined as any individual domiciled in the state on the last
defined as federal adjusted gross
federal adjusted gross income
day of the taxable year, and every other individual who, for
income with certain modifications not
above the exclusions under §§
more than six months of the taxable year, maintains a place
herein relevant.
Since Maryland
911-912 of the IRC.
of abode within the state, whether domiciled in the state or
defines its taxable net income in terms
not. Md. Tax & Rev. Code Ann. § 10-101(h).
of federal adjusted gross income, the
Non-residents -- Subject to tax
exclusions under §§ 911-912 of the
on the portion of federal
The term “non-resident” means an individual who is not a
IRC for income from sources without
adjusted gross income derived
resident. Md. Tax & Rev. Code Ann. § 10-101(g).
the United States are apparently
f r o m
s o u r c e s
w i t h i n
adopted into Maryland taxable income.
Maryland.
Evidence that a person has registered to vote in Maryland is
Md. Tax & Rev. Code Ann. §§ 10-206,
ordinarily persuasive evidence that such person is domiciled
10-401.
Military personnel -- Subject
in Maryland. Comptroller of the Treasury v. Lenderking,
t o
t a x
o n
m i l i t a r y
268 Md. 613, 303 A.2d 402 (1973); Roberts v. Lakin, 340
(2) The portion of a non-resident's
compensation
with
stated
Md. 147, 665 A.2d 1024 (1995).
federal adjusted gross income derived
exclusions.
from sources within and without the
See Soldiers' and Sailors' Civil Relief Act.
state. Md. Tax & Rev. Code Ann. §
10-401.
Since Maryland computes its own
taxable income from federal adjusted
gross income, the exclusion under §
112 of the IRC for compensation
received for active service as a
member of the armed forces of the
United States for any month during
which such member served in a
combat zone or was hospitalized as a
result of an injury incurred in such
service is apparently adopted into the
computation of Maryland taxable
income. Md. Tax & Rev. Code Ann.§
10-401

CRS-33
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Maryland
Military residents may deduct the first
(Continued)
$15,000 of military pay attributable to
military service outside the United
States.
This deduction is reduced
dollar-for-dollar for each dollar earned
over $15,000. Md. Tax & Rev. Code
Ann.§ 10-207(p).
Military retirees with federal adjusted
gross income under $22,500 may
deduct $2,500 from taxable income
subject to certain conditions. Md. Tax
& Rev. Code Ann. 10-207(q).

CRS-34
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Michigan
Residents and non-residents -- The term “resident” is
(1) The taxable income of residents
Residents -- Subject to tax on
defined as an individual domiciled in the state. “Domicile”
defined as taxable income for federal
federal adjusted gross income
is defined as the place where a person has his true, fixed,
income tax purposes.
However,
allocable to sources within
and permanent home and principal establishment to which,
Michigan generally taxes only income
M i c h i g a n
a b o v e
t h e
whenever absent therefrom, he intends to return, and
allocable to certain activities and
exclusions of §§ 911-912 of
domicile continues until another permanent establishment
sources within Michigan. Also, since
the IRC.
is established. If an individual lives in the state for at least
Michigan defines its taxable income
183 days during the taxable year or more than ½ the days
for federal income tax purposes, the
Non-residents -- Subject to tax
during the taxable year of less than 12 months, he is deemed
exclusions for income earned without
on taxable income allocable to
a resident individual domiciled in the state. Mich. Comp.
the United States under §§ 911-912 of
sources within Michigan.
L. Ann. § 206.18.
the IRC would apply. Mich. Comp. L.
Ann. §§ 206.30, 206.110.
M i l i t a r y
p e r s o n n e l
- -
Non-resident -- The term “non-resident” is defined as any
Michigan does not tax military
individual who is not a resident. Mich. Comp. L. Ann. §
(2) The taxable income of non-
compensation or retirement
206.14.
residents to the extent allocable to
income from service in the
sources within Michigan.
Mich.
armed forces.
See Soldiers' and Sailors' Civil Relief Act.
Comp. L. Ann.§§ 206.51, 206.110.
Michigan allows the deduction, to the
extent included in federal adjusted
gross
income,
of
compensation,
including retirement benefits, received
for services in the armed forces of the
United States. Mich. Comp. L. Ann.§
206.30(e).

CRS-35
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Minnesota
Residents and non-residents -- The term “resident” is
The gross income of residents defined
Residents -- Subject to tax on
defined as an individual domiciled in the state or any
as federal adjusted gross income with
federal adjusted gross income
individual maintaining a place of abode within the state and
certain
modifications
not
herein
above the exclusion under §§
who spends over half of the tax year in Minnesota. An
relevant. Since Minnesota defines its
911-912 of the IRC.
individual is not a resident for the period of time that the
gross income in terms of federal
individual is qualified under § 911(d)(1) of the IRC. Minn.
adjusted gross income, the exclusions
Non-residents -- Subject to tax
Stat. § 290.01(7).
under §§ 911-912 of the IRC for
on federal adjusted gross
income from sources without the
income allocable to sources
The Minnesota Tax Regulations state that voting in
United States are apparently adopted
within Minnesota.
Minnesota is presumptive evidence of residence, but may
into the computation of Minnesota
be overcome by facts contrary to the presumption of
gross
income.
Minn.
Stat.
§§
Military personnel -- Subject
residence. Minn. Tax. Reg. 1.6001;
290.01(19) et seq.
t o
t a x
o n
m i l i t a r y
compensation
with
stated
See Soldiers' and Sailors' Civil Relief Act.
The net income of non-residents
exclusions.
allocable to sources within Minnesota.
Min.
Stat.
§§
290.01(22)(2);
290.06(2c)(e).
Since Minnesota computes its own
taxable income from federal adjusted
gross income, the exclusion under §
112 of the IRC for compensation
received for active service as a
member of the armed forces of the
United States for any month during
which such member served in a
combat zone or was hospitalized as a
result of an injury incurred in such
service is apparently adopted
into
computation of Minnesota taxable
income. Minn. Stat. § 290.01

CRS-36
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Missouri
Residents and non-residents -- The term “resident” is
The Missouri taxable income of
Residents -- Subject to tax on
defined as an individual who is domiciled in this state,
residents calculated on the basis of
Missouri
taxable
income,
unless he (1) maintains no permanent place of abode in this
federal adjusted gross income with
which excludes income from
state, (2) does maintain a permanent place of abode
modifications.
Since
Missouri
sources without the United
elsewhere, and (3) spends in the aggregate not more than
computes its taxable income from
States in the same manner as
thirty days of the taxable year in this state, or who is not
federal adjusted gross income, the
§§ 911-912 of the IRC.
domiciled in this state, but maintains a permanent place of
exclusions under §§ 911-912 of the
abode in this state and spends the in the aggregate more
IRC for income from sources without
Non-residents -- Subject to tax
than 183 days of the taxable year in this state. Mo. Stat. §
the United States are apparently
on
income
derived
from
143.101.
adopted into the computation of
sources within Missouri.
Missouri taxable income. Mo. Stat. §
The term “non-resident” is defined as an individual who is
143.121.
Military personnel -- Subject
not a resident of this state. Mo. Stat. §. 143.101.
to tax on payments for service
The income of non-residents derived
in the armed services with
See Soldiers' and Sailors' Civil Relief Act.
from sources within Missouri. Mo.
stated exclusions.
Stat. § 143.181(1).
Since Missouri computes its own
taxable income from federal adjusted
gross income, the exclusion under §
112 of the IRC for compensation
received for active service as a
member of the armed forces of the
United States for any month during
which such member served in a
combat zone or was hospitalized as a
result of an injury incurred in such
service is apparently adopted
into
computation
of
Missouri
taxable
income. Mo. Stat. § 143.121

CRS-37
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Nebraska
Residents and non-residents -- The term “resident” is
(1) The entire taxable income of
Residents -- Subject to tax on
defined as an individual who is domiciled in the state or
residents defined as federal taxable
federal adjusted gross income
who maintains a permanent place of abode within the state
income with certain modifications not
above the exclusions under §§
and spends in the aggregate more than six months of the
herein relevant. Neb. Rev. Stat. § 77-
911-912 of the IRC.
taxable year within the state.
Neb. Rev. Stat. § 77-
2716. Since Nebraska computes its tax
2714.01(7).
base in terms of federal adjusted gross
Non-residents -- Subject to tax
income, the exclusions under §§ 911-
on federal adjusted gross
The term “non-resident” is defined as an individual who is
912 of the IRC are apparently adopted.
income derived from sources
not a resident of this state. Neb. Rev. Stat.§ 77-2714.01(4).
within Nebraska.
(2) The federal adjusted gross income
See Soldiers' and Sailors' Civil Relief Act.
of non-residents derived from sources
Military personnel -- Subject
within Nebraska. Neb. Rev. Stat. § 77-
t o
t a x
o n
m i l i t a r y
2733.
compensation
with
stated
exclusions.
The federal exclusion under § 112 of
the IRC for compensation received for
active service as a member of the
armed forces of the United States for
any month during which such member
served in a combat zone or was
hospitalized as a result of an injury
incurred in such service is adopted
specifically into the computation of
Nebraska taxable income. Neb. Rev.
Stat. § 77-27,123.

CRS-38
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
New York
Residents and non-residents -- The term “resident” is
(1) The adjusted gross income of
Residents -- Subject to tax on
defined as: (1) an individual who is domiciled in the state
residents is defined as federal adjusted
federal adjusted gross income
unless he maintains no permanent place of abode in the
g r o s s
i n c o m e
w i t h
c e r t a i n
above the exclusion under §§
state and spends not over 30 days of the taxable year within
modifications not herein relevant.
911-912 of the IRC.
the state, or he is present in a foreign country for at least
Since New York defines its own
450 days of a 548 day period, and during such 548 day
adjusted gross income in terms of
Non-residents -- Subject to tax
period he is not in the state for more than 90 days and does
federal adjusted gross income, the
on federal adjusted gross
not maintain a permanent place of abode in the state where
exclusions for income earned from
income derived from sources
his spouse or minor children are present for 90 days or
sources without the United States are
within New York.
more, and other conditions, or (2) an individual who is not
apparently
adopted
into
the
domiciled in the state, but maintains a permanent place of
computation of New York adjusted
Military personnel -- Subject
abode within the state and spends in the aggregate more
gross income. N.Y. Tax Law. § 612.
t o
t a x
o n
m i l i t a r y
than 183 days of the taxable year within the state, unless
compensation
with
stated
such individual is in active service in the armed forces of
(2) The federal adjusted gross income
exclusions.
the United States. N.Y. Tax Law § 605(b)(1).
of non-residents derived from sources
within New York. N.Y. Tax Law §
The term “non-resident” is defined as an individual who is
631.
not a resident. N.Y. Tax Law § 605(b)(2).
Military compensation of one not
See Soldiers' and Sailors' Civil Relief Act.
domiciled in New York is not to be
considered income derived from New
York sources.
N.Y. Tax Law §
631(e).
Since New York computes its own
taxable income from federal adjusted
gross income, the exclusion under §
112 of the IRC for compensation
received for active service as a
member of the armed forces of the
United States for any month during
which such member served in a
combat zone or was hospitalized as a
result of an injury incurred in such
service is apparently adopted into the
computation of New York taxable

CRS-39
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
North
Residents and non-residents -- The term “resident” is
(1) The taxable income of residents
Residents -- Subject to tax on
Dakota
defined as any natural person domiciled in the state and any
defined in terms of federal taxable
federal taxable income above
other natural person who maintains a permanent place of
income with certain modifications not
the exclusions under §§ 911-
abode within the State and spends in the aggregate more
herein relevant. Since North Dakota
912 of the IRC.
than seven months of the income year within the state. A
defines its own taxable income in
full-time active duty member of the armed forces assigned
terms of federal taxable income, the
Non-resident -- Subject to tax
to a military installation in this state, or the spouse of such
exclusions under §§ 911-912 of the
on net income from sources
a person, is not a resident simply by reason of voting in an
IRC for income from sources without
within North Dakota.
election in the state. N.D. Code § 57-38-01(6).
the United States are apparently
adopted into the computation of North
Military personnel -- Taxable
See Soldiers' and Sailors' Civil Relief Act.
Dakota taxable income. N.D. Code §
income is reduced by: (a) any
57-38-01.2.
amount up to $1,000, received
by any person as payment for
Taxable income is reduced by: (a) an
services performed while on
amount up to $1,000, received as
active duty in the armed forces
payment for services performed while
of the United States, or as
on active duty in the armed forces of
payment for attending military
the United States, as payment for
meetings as a member of the
attending military meetings as a
National
Guard,
or
of
a
member of the National Guard, or of a
reserve unit; and (b) any
reserve unit; and (b) any amount up to
amount up to $5,000 received
$5,000 received by any person fifty
by any person fifty years or
years or older as retired military pay
older as retired military pay
for service in the United States armed
for service in the United States
forces or reserve components thereof,
armed
forces
or
reserve
reduced by any amount received
components thereof, reduced
pursuant to the Federal Social Security
by
any
amount
received
Act. N.D. Code § 57-38-01.2(l).
pursuant to the Federal Social
Security Act.
The net income of non-residents
derived from sources within North
Dakota. N.D. Code § 57-38-03.

CRS-40
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
North Dakota
Also, persons serving in the armed
Also, persons serving in the
(Continued)
forces, except field grade and general
armed forces, except field
officers who are stationed outside of
grade and general officers,
any state or the District of Columbia
who are stationed outside of
for not less than thirty days during the
any state or the District of
tax year, shall be allowed an additional
Columbia for not less than
reduction of up to $300 per month for
thirty days during the taxable
services performed while on active
year, shall be allowed an
duty at such location. N.D. Code § 57-
additional reduction of up to
38-01.2(1)(k);.
$300 per month for services
performed while on active
duty at each location.
Ohio
Residents and non-residents -- The term “resident” is
The adjusted gross income of residents
Residents -- Subject to tax on
defined as an individual who is domiciled in this state.
defined as federal adjusted gross
federal adjusted gross income
Ohio Code tit. 57 § 5747.01(I). One is presumed domiciled
income with certain modifications not
above the exclusions under §§
in the state if one spent over 183 nights in the state during
herein relevant. Since Ohio defines its
911-912 of the IRC.
12 consecutive months. One is presumed not domiciled if
own adjusted gross income in terms of
one spent less than 120 nights in the state during 12
federal adjusted gross income, the
Non-residents -- Subject to tax
consecutive months.. Ohio Code tit. 57 § 5747.24.
exclusions under §§ 911-912 of the
on adjusted gross income
IRC for income from sources without
derived from sources within
The term “non-resident” is defined as an individual who is
the United States are apparently
Ohio.
not a resident. Ohio Code tit. 57 § 5747.01(J).
adopted into the computation of Ohio
adjusted gross income. Ohio Code tit.
Military personnel -- Subject
See Soldiers' and Sailors' Civil Relief Act.
57 § 5747.01(A).
t o
t a x
o n
m i l i t a r y
compensation
with
stated
exclusions.

CRS-41
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Ohio
The adjusted gross income on non-
(Continued)
residents derived from sources within
Ohio. Ohio Code tit. 57 § 5747.01.
The federal exclusion under § 112 of
the IRC for compensation received for
active service as a member of the
armed forces of the United States for
any month during which such member
served in a combat zone or was
hospitalized as a result of an injury
incurred in such service is adopted
specifically into the computation of
Ohio taxable income. Ohio Code tit.
57 § 5747.02.4.
Oklahoma
Residents and non-residents -- The term “resident” is
(1) The taxable income of residents
Residents -- Subject to tax on
defined as any individual who is domiciled in the state.
defined on the basis of federal adjusted
taxable income above the
Any individual who spends in the aggregate more than
g r o s s
i n c o m e
w i t h
c e r t a i n
exclusions under §§ 911-912
seven months of the taxable year within the state shall be
modifications not herein relevant.
of the IRC.
presumed a resident. Okla. Stat. tit. 68 § 2353(4).
Since Oklahoma bases its taxable
income on federal adjusted gross
Non-residents -- Subject to tax
income, the exclusions under §§ 911-
on taxable income derived
912 of the IRC for income from
f r o m
s o u r c e s
w i t h i n
sources without the United States are
Oklahoma.
appar ently
adopted
into
the
computation of Oklahoma taxable
Military personnel -- Subject
income. Okla. Stat. tit. 68 §§ 2353(3),
t o
t a x
o n
m i l i t a r y
2355.
compensation above the first
$1,500.

CRS-42
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Oklahoma
The term “non-resident individual” is defined as an
(2) The federal adjusted gross income
(Continued)
individual, other than a resident individual with special
of non-residents derived from sources
provisions for foreign earned income. Okla. Stat. tit. 68 §
within Oklahoma. Okla. Stat. tit. 68 §
2353(4).
2362.
See Soldiers' and Sailors' Civil Relief Act.
(3) In any taxable year the first $1,500
received by any person from the
Uni t e d
St a t e s
as
salary
or
compensation in any form (other than
a pension) as a member of any
component of the armed forces of the
United States shall be deducted from
taxable income. Okla. Stat. tit. 68 §
2358(D)(5).

CRS-43
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
R h o d e Residents and non-residents -- The term “resident” is (1) The Rhode Island income of Residents -- Subject to tax on
Island
defined to include both (1) domiciliaries, and (2) non-
residents is defined as federal adjusted
taxable income above the
domiciliaries who maintain a permanent place of abode
g r o s s
i n c o m e
w i t h
c e r t a i n
exclusions under §§ 911-912
within the state and reside in the state for more than 183
modifications not herein relevant.
of the IRC.
days of the taxable year other than as a member of the
Since Rhode Island defines its own
armed forces of the United States. R.I. Gen. Laws § 44-30-
taxable income in terms of federal
Non-residents -- Subject to tax
5(a).
adjusted gross income, the exclusions
on taxable income derived
under
§§ 911-912 of the IRC are
from sources within Rhode
The term non-resident is defined as an individual who is
apparently
adopt ed
into
the
Island.
not a resident. R.I. Gen. Laws § 44-30-5(b).
computation of Rhode Island taxable
income.
R.I. Gen. Laws § 44-30-
Military personnel -- Subject
See Soldiers' and Sailors' Civil Relief Act.
12(a).
t o
t a x
o n
m i l i t a r y
compensation
with
stated
(2) The taxable income on non-
exclusions.
residents derived from sources within
Rhode Island. R.I. Gen. Laws § 44-
30-32(a).
Since Rhode Island computes its own
taxable income from federal adjusted
gross income, the exclusions under §
112 of the IRC for compensation
received for active service as a
member of the armed forces of the
United States for any month during
which such member served in a
combat zone or was hospitalized as a
result of an injury incurred in such
service is apparently adopted into the
computation of Rhode Island taxable
income. R.I. Gen. Laws § 44-30-12.

CRS-44
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
South
Resident and non-resident -- The term “resident” means
Resident - the entire taxable income on
Residents -- Subject to tax on
Carolina
any individual who is domiciled in the state. The term
the basis of federal adjusted gross
taxable income above the
“non-resident” means an individual other than a resident or
income with certain modifications,
exclusion under § 911 of the
part year resident. S.C. Code § 12-6-30(2).
S.C. Code § 12-6-560. No exclusion
IRC.
under § 912 is allowed. S.C. Code §
12-6-1120(5). Non-resident - subject
Non-residents -- Subject to tax
to tax on property owned or business
on taxable income derived
carried on in South Carolina.
S.C.
from sources within South
Code § 12-6-1720.
Carolina.
Retirees may deduct up to $3,000 of
Military personnel -- Subject
retirement income that is taxable by
t o
t a x
o n
m i l i t a r y
South Carolina or irrevocably choose
compensation
with
stated
to defer annual retirement income
exclusions.
deduction until the year the taxpayer
reaches sixty-five years of age. S.C.
Code § 12-6-1170(1).
Since South Carolina computes its own
taxable income from federal adjusted
gross income, the exclusions under §
112 of the IRC for compensation
received for active service as a
member of the armed forces of the
United States for any month during
which such member served in a
combat zone or was hospitalized as a
result of an injury incurred in such
service is apparently adopted into the
computation of South Carolina taxable
income. S.C. Code § 12-6-560.

CRS-45
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Utah
Residents and non-residents -- The term “resident” is
(1) The taxable income of residents is
Residents -- Subject to tax on
defined to include domiciliaries, and individuals not
defined in terms of federal taxable
taxable income above the
domiciled in the state and residing within the state in the
income with certain modifications not
exclusions under §§ 911-912
aggregate for over 183 days of the taxable year. Utah Code
herein relevant. Since Utah defines its
of the IRC.
§ 59-10-103(j).
own taxable income in terms of federal
taxable income, the exclusions under
Non-residents -- Subject to tax
The term non-resident is defined as an individual who is
§§ 911-912 of the IRC for income
on taxable income derived
not a resident of the state. Utah Code § 59-10-103(g).
from sources without the United States
from sources within Utah.
are apparently adopted
into Utah
See Soldiers' and Sailors' Civil Relief Act.
taxable income. Utah Code §§ 59-10-
Military personnel -- Subject
104 & 112.
to tax on military pay with
stated exclusions.
Since Utah computes its own taxable
income from federal taxable income,
the exclusion under § 112 of the IRC
for compensation received for active
service as a member of the armed
forces of the United States for any
month during which such member
served in a combat zone or was
hospitalized as a result of an injury
incurred in such service is apparently
adopted into the computation of Utah
taxable income. Utah Code §§ 59-10-
104 & 116.

CRS-46
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Vermont
Residents -- The term “resident” is defined to include both
(1) The adjusted gross income of
Residents -- Subject to tax on
(1) domiciliaries, and (2) non-domiciliaries who maintain
residents is defined as federal adjusted
federal adjusted gross income
a permanent place of abode within the state and reside
gross income. Since Vermont defines
above the exclusions under §§
within the state for more than 183 days of the taxable year.
its adjusted gross income in terms of
911-912 of the IRC.
Vt. Stat. tit. 32 § 5811(11)(A)(i), (ii).
federal adjusted gross income, the
exclusions under §§ 911-912 of the
Non-residents -- Subject to tax
Non-resident -- anyone not a resident. Vt. Stat. tit. 32 §
IRC for income from sources without
on federal adjusted gross
5811(9).
the United States are apparently
income derived from sources
adopted into the computation of
within Vermont.
See Soldiers' and Sailors' Civil Relief Act.
Vermont adjusted gross income. Vt.
Stat. tit. 32, §§ 5811(1), 5822, 5823.
Military personnel --
Not
subject to tax on military pay
for
full-time
active
duty
service performed outside of
the state.
(2) The adjusted gross income of non-
residents derived from sources within
Vermont. Vt. Stat. tit. 32, § 5823.
(3) Adjusted gross income does not
include military pay for full-time
active duty with the armed services
outside of the state. Vt. Stat. tit. 32 §
5823(a)(2).

CRS-47
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Virginia
Residents and non-residents -- The term “resident” is
(1) The taxable income of residents
Residents -- Subject to tax on
defined as an individual domiciled in the Commonwealth
defined in terms of federal adjusted
federal adjusted gross income
and a person who maintains an abode in the state for more
g r o s s
i n c o m e
w i t h
c e r t a i n
above the exclusion under §§
than 183 days of the taxable year. Va. Code § 58.1-302.
modifications not herein relevant.
911-912 of the IRC.
Since Virginia defines its taxable
Persons in the armed forces of the United States stationed
income in terms of federal adjusted
Non-residents -- Subject to tax
on military or naval reservations within Virginia who are
gross income, the exclusion under §§
on taxable income derived
not domiciled in Virginia and who maintain no place of
911-912 of the IRC are apparently
from sources within the state.
abode in Virginia shall not be held liable to income taxation
adopted
into the computation of
for compensation received from military or naval service.
Virginia taxable income.
The first
Military personnel -- Subject
Va. Code § 58.1-321(B).
$15,000 of military pay is excluded
to tax on military pay with
from income, with a dollar for dollar
stated exclusions.
reduction in the exclusion for income
over $15,000. Va. Code § 58-1-322.
(2) The taxable income of non-
residents derived from sources within
the state. Va. Code § 58-1-325.
The federal exclusion under § 112 of
the IRC for compensation received for
active service as a member of the
armed forces of the United States for
any month during which such member
served in a combat zone or was
hospitalized as a result of an injury
incurred in such service is specifically
adopted into the computation of
Virginia taxable income. Va. Code §
58-1-322.
Virginia grants a tax credit for taxes
paid to a foreign country on retirement
income. Va. Code § 58-1-332.1.

CRS-48
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
West
Residents and non-residents -- The term “resident” is
(1) The taxable income of residents
Residents -- Subject to tax on
Virginia
defined to include: (1) domiciliaries, unless they maintain
defined in terms of federal adjusted
taxable income above the
no permanent place of abode within the state, maintain a
gross income with modifications not
exclusions under 911-912 of
permanent place of abode outside the state, and spend not
herein relevant. Since West Virginia
the IRC.
more than 30 days of the taxable year in the state, and (2)
defines its own taxable income in
non-domiciliaries who maintain a permanent place of abode
terms of federal adjusted gross income,
Non-residents -- Subject to tax
within the state and reside within the state for more than
the exclusions under §§ 911-912 of the
on taxable income derived
183 days of the taxable year. W. Va. Code § 11-21-7(a).
IRC for income from sources outside
from sources within West
the United States are apparently
Virginia.
“Non-resident” is defined to mean an individual who is not
incorporated
into the definition of
a resident. W. Va. Code § 11-21-7(b).
West Virginia taxable income. W. Va.
Military personnel -- Subject
Code §§ 11-21-11(a), 12.
to tax on such compensation
See Soldiers' and Sailors' Civil Relief Act.
with stated exclusions.
(2) The taxable income of non-
residents derived from sources within
West Virginia. W. Va. Code §§ 11-21-
30, 32.
Since West Virginia computes its own
taxable income from federal adjusted
gross income, the exclusion under
Section § 112 of the IRC for
compensation
received
for
active
service as a member of the armed
forces of the United States for any
month during which such member
served in a combat zone or was
hospitalized as a result of an injury
incurred in such service is apparently
adopted
into computation of West
Virginia taxable income. W. Va. Code
§ 11-21-11

CRS-49
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Wisconsin
Residents and non-residents -- The term “resident” is
(1) The taxable income of residents
Residents -- Subject to tax on
defined as a domiciliary. Wis. Stat. § 71.02(1).
defined in terms of federal adjusted
taxable income above the
g r o s s
i n c o m e
w i t h
c e r t a i n
exclusions under §§ 911-912
See Soldiers' and Sailors' Civil Relief Act.
modifications not herein relevant.
of the IRC.
Since Wisconsin defines its own
taxable income in terms of federal
Non-residents -- Subject to tax
adjusted gross income, the exclusions
on taxable income derived
under §§ 911-912 of the IRC for
f r o m
s o u r c e s
w i t h i n
income from sources without the
Wisconsin.
United States are apparently adopted
into the computation of Wisconsin
Military personnel -- Subject
taxable income.
Wis. Stat.
§§
t o
t a x
o n
m i l i t a r y
71.01(13) & 71.05.
compensation
with
stated
exemption.
(2) The taxable income of non-
residents derived from sources within
Wisconsin. Wis. Stat. §§ 71.01 &
71.02.
Non-residents
domiciled
without Wisconsin who derive income
from performing personal services
within Wisconsin shall be excluded
from having to pay Wisconsin tax to
the extent that the home domicile taxes
the income. Wis. Stat. § 71.05(2).

CRS-50
PROBABLE TAX
STATE
INCOME TAX COVERAGE
TAX BASE
OBLIGATION
Wisconsin
Since Wisconsin computes its own
(Continued)
taxable income from federal adjusted
gross income, the exclusion under §
112 of the IRC for compensation
received for active service as a
member of the armed forces of the
United States for any month during
which such member served in a
combat zone or was hospitalized as a
result of an injury incurred in such
service is
apparently adopted into
computation of Wisconsin taxable
income. Wis. Stat. § 71.05.
IV. States Having No Income Tax
STATES:
Alaska
Florida
Nevada
South Dakota
Texas
Washington
Wyoming