Live in Colorado, Work Remotely for a Nevada Employer: Who Taxes You?
Answer
Colorado gets all of it. Because Nevada does not tax wage income, no Nevada withholding exists and no Nevada return is required — but Colorado taxes residents on worldwide income, so every dollar earned in Nevada still belongs on your Colorado resident return.
Last verified
Crossing into a state with no income tax does not lower your tax bill, because your home state is not taxing you on where you work — it is taxing you on where you live. Colorado reaches all of a resident's income, and Nevada adds nothing on top.
What you file
- 1Resident return · Colorado
File a Colorado resident return reporting all of your income.
The two states, side by side
| Colorado | Nevada | |
|---|---|---|
| Taxes wages | Yes — flat | No |
| Reciprocity partners | None | None |
| Convenience rule | No | No |
| Nonresident return | Form DR 0104 with Schedule DR 0104PN | Not applicable |
| Credit for other-state tax | Form DR 0104CR | No income tax |
| Nonresident safe harbour | None published | Not applicable |
| Local income tax | Yes | No |
| Revenue department | Colorado Department of Revenue — Taxation Division | Nevada Department of Taxation |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Nevada and working in Colorado gives:No state income tax on your wages.
Same two states, different situation
The withholding answer turns on how you are paid and where the work happens, not only on which two states are involved.
- W-2 commuter: Colorado → NevadaHome state only
- 1099 contractor: Colorado → NevadaHome state only — estimated payments
- Moved mid-year: Colorado → NevadaOne part-year return — the state you left
Other Colorado pairs
Questions people actually ask
I live in Colorado and work remotely for a Nevada employer. Which state do I pay?
Colorado gets all of it. Because Nevada does not tax wage income, no Nevada withholding exists and no Nevada return is required — but Colorado taxes residents on worldwide income, so every dollar earned in Nevada still belongs on your Colorado resident return.
Which state should my employer be withholding for?
Colorado. Your employer should withhold Colorado tax rather than Nevada tax on these wages. If a Nevada line is showing on your pay stub, raise it with payroll now rather than at filing time.
How current is this?
The Colorado and Nevada rules on this page were last checked against Colorado Department of Revenue — Taxation Division and Nevada Department of Taxation on 2026-08-07. We re-check the full grid every December after state legislative sessions close, and re-check the convenience-of-the-employer states quarterly because that is where the rules move fastest.
Sources
Every fact above comes from the revenue department that publishes the rule. We do not cite secondary summaries, and we do not restate a figure we could not find at source.
- Colorado Department of Revenue — Taxation Division — individual income taxaccessed 2026-08-07
- Nevada Department of Taxation — individual income taxaccessed 2026-08-07