It’s now been two years since the rise of remote work enabled people to start moving out of the big cities, transforming the geographic demography of the United States. And while the initial beneficiaries were vacation destinations in the mountains and by the water, that growth model isn’t likely to last. Housing costs and labor shortages are limiting how many wealthy migrants can move to places like Montana or Lake Tahoe.
For remote-work destinations to be sustainable, they need to accommodate both well-off migrants and the working-class population already in those communities. That adds up to an opportunity for many college towns. The smaller municipalities often are desirable places to live and already have stable local economies driven by higher education activities. But at the same time, many haven’t had the kinds of employment opportunities for college graduates that larger cities do.
So how does the tax situation work for remote workers? If you’re working for Amazon, and you move to Knoxville, do you only pay Tennessee taxes? What if you’re workinig for a company that only has a California presence?
You’d only pay Tennessee taxes, and they don’t tax W-2 income. The states without income tax are going to see even higher population growth from people migrating.
I believe California is the only messed up state that will tax someone who works there even if they don’t live there. Most states only tax residents who live in the state. Pro athletes actually have to file CA income tax for game solved in CA.