Live in Idaho, Work Remotely for a California Employer: Who Taxes You?
Answer
Only Idaho taxes you. California levies no personal income tax on wages, so nothing is withheld there and you file no California return. Idaho taxes its residents on all income wherever earned, which means your California earnings go on a Idaho resident return in full.
Last verified
The instinct that working in a no-tax state means paying no tax is the single most expensive misunderstanding in this niche. California takes nothing, but Idaho still taxes residents on income earned anywhere, so the full amount lands on your Idaho return.
What you file
- 1Resident return · Idaho
File a Idaho resident return reporting all of your income.
The two states, side by side
| Idaho | California | |
|---|---|---|
| Taxes wages | Yes — flat | Yes — graduated |
| Reciprocity partners | None | None |
| Convenience rule | No | No |
| Nonresident return | Form 43 | Form 540NR |
| Credit for other-state tax | Form 39NR | Schedule S |
| Nonresident safe harbour | None published | None published |
| Local income tax | No | No |
| Revenue department | Idaho State Tax Commission | California Franchise Tax Board |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in California and working in Idaho gives:Home state only.
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: Idaho → CaliforniaBoth states — credit offsets the double tax
- 1099 contractor: Idaho → CaliforniaHome state, plus the client state if you work there
- Moved mid-year: Idaho → CaliforniaTwo part-year returns
Other Idaho pairs
Questions people actually ask
I live in Idaho and work remotely for a California employer. Which state do I pay?
Only Idaho taxes you. California levies no personal income tax on wages, so nothing is withheld there and you file no California return. Idaho taxes its residents on all income wherever earned, which means your California earnings go on a Idaho resident return in full.
Which state should my employer be withholding for?
Idaho. Your employer should withhold Idaho tax rather than California tax on these wages. If a California line is showing on your pay stub, raise it with payroll now rather than at filing time.
Does my California employer's location alone create a California tax obligation?
No. California sources wages to the place where the work is physically performed, and it does not apply a convenience-of-the-employer rule that would override that. Days you actually spend working inside California are a different matter — those are California-source income and can require a nonresident return.
How current is this?
The Idaho and California rules on this page were last checked against Idaho State Tax Commission and California Franchise Tax Board 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.
- Idaho State Tax Commission — individual income taxaccessed 2026-08-07
- California Franchise Tax Board — individual income taxaccessed 2026-08-07