Commuter taxes 2026

Live in Vermont, work in New York

Without wage reciprocity, the work state may tax wages earned there. Your home state generally offers a limited credit for eligible tax paid on the same income. Filing requirements, credit limits and local taxes need a separate check.

By Abu HasnatPage updated Nov 7, 2026Data: Vermont and New York revenue departments (methodology)

Official tax guidance for both states

Check withholding, filing requirements and current forms with each state's tax agency.

Vermont: Vermont Department of Taxes (opens in new tab)
New York: Department of Taxation and Finance (opens in new tab)

Agency directory checked 2026-10-01 against the IRS state-government directory. This verifies the agency links, not an individual tax result. Use forms for the year you are filing.

Before you use this estimate

This model assumes a full-year resident of Vermont, ordinary employee wages and all workdays physically in New York. Check exemption eligibility before treating a work-state amount of $0 as your own result. Withholding is a prepayment, not final tax liability. Other income, a move during the year, remote work and separate local taxes or credits can change the result.

Work-state remote-work guidance checked 2026-11-02. The calculator's full-year and physical-work assumptions still apply.

I live inI work inAnnual wages ($)Filing status

State income tax: $4,860 a year

Modeled annual state income tax for living in Vermont and working in New York: about $4,860 on $100,000 of wages, $720 more than if you worked in Vermont.

Tax guide and official sources: live in Vermont, work in New York

Official agency starting points: Vermont tax agency (opens in new tab) · New York tax agency (opens in new tab). These directory links identify the selected states' agencies, not your filing obligations. Check their individual-tax guidance and forms for the year you are filing.

Tax to New York

$4,860

nonresident

Tax to Vermont

resident, after credit

Total state tax

$4,860

Typical state returns

This is the usual filing pattern, not a determination that you must file. Filing thresholds, age or dependent status, other income and withholding refunds can change which returns you need.

How this $100,000 estimate adds up

These steps follow the selected home, work state, salary and filing status. They reconcile the model's annual liability, not the amounts withheld from your paycheck.

Modeled state income tax for Vermont residence and New York work
Step	New York work state	Vermont home state
Tax before the modeled other-state credit	$4,860	$4,140
Modeled other-state credit subtracted	$0	$4,140
Tax after that credit	$4,860	$0

Total: $4,860 + $0 = $4,860 a year. Amounts are rounded for display. Work-state wage exemptions, when applicable, are already reflected in the first row; they are not an other-state credit.

The modeled credit is applied in Vermont, the home state. Actual eligibility and credit limits require the state instructions. Included county components stay in these amounts; excluded local taxes and credits stay excluded. Federal income tax, payroll programs and refund eligibility are outside this reconciliation.

State tax at different salaries

Wages	To NY	To VT	Modeled total	If you worked in VT
$50,000	$2,103	$0	$2,103	$1,241
$75,000	$3,453	$0	$3,453	$2,490
$100,000	$4,860	$0	$4,860	$4,140
$150,000	$8,291	$0	$8,291	$7,613
$250,000	$15,772	$0	$15,772	$15,213

Single filer, all wages earned in New York, 2026 state tax rules, standard deductions. Local income taxes not included.

What to do

Ask your employer to withhold New York tax. If Vermont's tax is higher, withhold the difference for Vermont too (or make estimated payments) to avoid an underpayment penalty.
File the New York nonresident return first, then claim the credit for taxes paid to another state on your Vermont resident return.
Keep a record of the days you work in each state, especially if you sometimes work from home.

Working from home for a New York employer

New York has a "convenience of the employer" rule. For a nonresident employee whose assigned or primary office is in New York, ordinary out-of-state telework may remain New York-source under the convenience rule. Check employer necessity and the bona fide employer-office conditions in TSB-M-06(5)I. The employer's New York address alone does not determine the allocation. The calculator does not allocate hybrid workdays.

Local income taxes

New York: NYC personal income tax applies to NYC residents only (about 3.078%-3.876%); nonresidents commuting into NYC pay no city income tax. Yonkers: resident surcharge (16.75% of NY state tax) and 0.5% nonresident earnings tax on wages earned in Yonkers. Self-employed in the MTA district pay MCTMT.

Special credit rules

NY: NY does not credit other states' tax on income NY treats as NY-sourced. Main double-tax risk is for nonresidents working remotely for NY employers (convenience rule) whose home state will not credit NY tax on days physically worked at home. NJ and CT generally allow the credit; other states may not.

Frequently asked questions

Do I pay New York income tax if I live in Vermont?

Yes. New York taxes wages earned there by nonresidents. On $100,000 that's about $4,860.

Do I have to file taxes in both Vermont and New York?

Usually yes: a nonresident return in New York and a resident return in Vermont, where you claim a credit for the tax paid to New York. File the New York return first.

Will I be taxed twice?

The modeled state credit reduces overlap on eligible wages; separate local taxes or sourcing differences can still leave additional tax. Vermont credits the tax you pay New York, so your total is about $4,860 on $100,000, compared with $4,140 if you also worked in Vermont. Local city or county taxes may still apply.

Rules reviewed 2026-09-24 from state revenue departments and the Tax Foundation. Estimates only; confirm with each state's revenue department.