Quick Answer
Yes, in most cases you'll file part-year resident returns in both your old and new states if both have income taxes. About 7 states have no income tax, but the other 43 states generally require part-year returns when you move, covering income earned while living there.
Best Answer
Robert Kim, Tax Return Analyst
People who moved between two states that both have income taxes
When do you file part-year returns in both states?
Yes, when you move between two states that both have income taxes, you'll typically file part-year resident returns in both states. This means filing your federal return plus two state returns — one for each state covering the period you lived there.
How part-year resident status works
Each state taxes you on income earned while you were a resident of that state. For example, if you lived in Virginia from January through June and then moved to North Carolina for July through December:
Example: $80,000 salary with mid-year move
Say you earned $80,000 working in Virginia, then got a new job in North Carolina paying the same amount. You moved July 1st:
Key factors that determine your filing requirements
Special situations that complicate dual filing
Remote work: If you worked remotely for a company in your old state after moving, that income might still be taxable to the old state depending on where you physically performed the work.
Investment income: Dividends, interest, and capital gains are typically taxed by your state of residence when received, not where the investment account is held.
Retirement distributions: Pensions and 401(k) withdrawals are usually taxed by your state of residence when distributed, not where you worked when earning the money.
What you should do
1. Gather all tax documents from both states — W-2s, 1099s, state withholding statements
2. Use tax software that handles multi-state returns — most major programs do this automatically
3. Keep detailed moving records including your exact move date and address changes
4. File both state returns even if you owe nothing — you likely have withholdings to recover
Check your state returns for missed deductions — each state has different deduction rules, and you might qualify for moving expense deductions or other state-specific breaks.
Key takeaway: Moving between two income tax states typically requires filing part-year returns in both states, but proper planning can often reduce your total state tax burden compared to staying put.
*Sources: [IRS Publication 521](https://www.irs.gov/pub/irs-pdf/p521.pdf) (Moving Expenses), state tax agency guidelines*
Key Takeaway: Most interstate moves require dual state filings, but you'll only pay tax on income earned while residing in each state, often resulting in lower total taxes than staying in one high-tax state.
State filing requirements when moving mid-year
| Scenario | Old State Filing | New State Filing | Total Returns |
|---|---|---|---|
| Both states have income tax | Part-year resident | Part-year resident | Federal + 2 state |
| Move to no-tax state | Part-year resident | None required | Federal + 1 state |
| Move from no-tax state | None required | Part-year resident | Federal + 1 state |
| Income in 3rd state too | Part-year resident | Part-year resident | Federal + 3+ state |
More Perspectives
Michelle Woodard, Tax Policy Analyst
People who moved between a state with income tax and one of the 7 states with no income tax
Moving to or from a no-tax state simplifies things
If you moved between a state with income tax and one of the 7 states with no income tax (Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Wyoming), you'll only file one state return.
Example: Moving from California to Texas
Say you lived in California through May earning $50,000, then moved to Texas earning $30,000 for the rest of the year:
Watch out for these complications
California's aggressive residency rules: California may still claim you as a resident if you maintain significant ties there — vacation home, business interests, family. They audit high earners who claim to have moved away.
New Hampshire dividend/interest tax: Though NH has no wage tax, they tax dividends and interest over $2,400 for residents.
Temporary moves: If your move to a no-tax state is temporary (less than a year), your original state might still claim full residency.
Key takeaway: Moving to a no-tax state eliminates future state tax filings but may trigger extra scrutiny from your former high-tax state, especially California or New York.
Key Takeaway: Moving to a no-tax state means filing only one part-year state return, but be prepared for potential residency audits from high-tax states like California.
Robert Kim, Tax Return Analyst
People who moved mid-year but also had income sources in other states
Multiple income sources complicate multi-state moves
If you moved between states AND had income from additional states (rental property, consulting work, etc.), you might need to file in 3+ states as a combination of part-year resident and non-resident.
Example: Complex three-state situation
You lived in Illinois (Jan-June), moved to Colorado (July-Dec), but also owned rental property in Florida:
Credit for taxes paid to other states
Most states offer a credit for taxes paid to other states on the same income, preventing true double taxation. However, the credit calculations can be complex with multiple states involved.
Priority order matters: Your resident state (where you live December 31st) gets first claim on all income, then gives credits for taxes paid to other states as a non-resident.
Professional help recommended
With 3+ state returns involving part-year residency, the complexity often justifies hiring a CPA who specializes in multi-state taxation. The potential for errors and missed optimization opportunities increases significantly.
Key takeaway: Multiple income sources across state lines during a move year often require 3+ tax returns and professional guidance to optimize your tax situation and avoid double taxation.
Key Takeaway: Income from multiple states during a move year typically requires several returns but proper credits prevent double taxation — though professional help is often worthwhile for complex situations.
Sources
- IRS Publication 521 — Moving Expenses and Tax Implications
Related Questions
Reviewed by Robert Kim, Tax Return Analyst on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.