Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
If I have rentals in Washington State (State Tax Free) and live in a state like Hawaii or California with a State tax, do I need to pay state tax? How will it work?
You would still just pay tax in HI or CA, based on the income there. The HI or CA forms you prepare will start with the Federal numbers (which include the rentals) and then have a way to separate what came from your home state and the other state.