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Daria B.
  • Rental Property Investor
  • Gainesville, FL
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Out of state tax obligation

Daria B.
  • Rental Property Investor
  • Gainesville, FL
Posted
I live in Florida - a no income tax state. I have a rental in MD that I have to file a state tax form for at tax time. My question#1 is for those investing in a state that is a no income tax state (Florida, Texas,etc) but do not live in those states, what obligations are there, if any, to pay on the income earned from your rental properties to that state. My question#2 is opposite of #1. Living in Florida as I do, if I buy in Texas that does not have a state income tax, what obligations are there for reporting the income I would have earned on rental property in Texas. Thanks

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Mark Creason
  • Real Estate Lender and Broker
  • Dallas, TX
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Mark Creason
  • Real Estate Lender and Broker
  • Dallas, TX
Replied
Originally posted by @Daria B.:

I live in Florida - a no income tax state. I have a rental in MD that I have to file a state tax form for at tax time.

My question#1 is for those investing in a state that is a no income tax state (Florida, Texas,etc) but do not live in those states, what obligations are there, if any, to pay on the income earned from your rental properties to that state.

My question#2 is opposite of #1. Living in Florida as I do, if I buy in Texas that does not have a state income tax, what obligations are there for reporting the income I would have earned on rental property in Texas.

Thanks

In Texas, there is no income tax, so you would not be obligated to pay income tax or file a return. 

Mark

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