Live in Maine, Work Remotely for a New York Employer: Who Taxes You?
Answer
Remote does not mean untaxed here. New York applies a convenience-of-the-employer test, so unless your employer can show the remote arrangement is a necessity rather than your preference, New York taxes the income. Maine taxes it too as resident income and gives a credit against its own tax.
Last verified
A handful of states refuse to accept the ordinary sourcing rule for their own employers' remote staff. New York is one of them, and its convenience-of-the-employer rule is the reason this page does not end with "only your home state taxes you".
New York runs the oldest and most aggressive convenience-of-the-employer rule. A nonresident employee of a New York employer is taxed on every workday performed at home unless the home office meets New York's bona fide employer office test, which is deliberately hard to satisfy. Working remotely because you prefer to is convenience; working remotely because the job cannot be done in New York is necessity.
The rule is not an administrative preference. New York applies it under 20 NYCRR §132.18(a); TSB-M-06(5)I, and the burden of showing that remote work is an employer necessity rather than an employee convenience falls on you and your employer, not on New York State Department of Taxation and Finance.
A Maine resident taxed by another state on the same income claims the credit for taxes paid to other states on Form 1040ME Schedule A. The credit is capped at the Maine tax on that income, so it removes the double tax but never refunds the excess when the other state charges more.
New York also has a layer below the state one, and it is the layer that survives every agreement: New York City levies a resident income tax, and Yonkers levies both a resident tax and a small nonresident earnings tax. New York City has not taxed nonresident commuters since the commuter tax was repealed in 1999 — a New Jersey or Connecticut resident working in Manhattan owes New York State but not New York City.
What you file
- 1Nonresident return · New YorkForm IT-203
File the New York nonresident return FIRST — you need the New York tax figure before you can complete Maine.
- 2Resident return · MaineForm 1040ME Schedule A
File a Maine resident return reporting all income, then claim the credit for tax paid to New York. The credit is capped at what Maine would have charged on that same income, so if New York taxes it at a higher rate the difference is not refunded.
The two states, side by side
| Maine | New York | |
|---|---|---|
| Taxes wages | Yes — graduated | Yes — graduated |
| Reciprocity partners | None | None |
| Convenience rule | No | Yes — general rule |
| Nonresident return | Form 1040ME with Schedule NR | Form IT-203 |
| Credit for other-state tax | Form 1040ME Schedule A | Form IT-112-R |
| Nonresident safe harbour | 12 days or a dollar floor | None published |
| Local income tax | No | Yes |
| Revenue department | Maine Revenue Services | New York State Department of Taxation and Finance |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in New York and working in Maine 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: Maine → New YorkBoth states — credit offsets the double tax
- 1099 contractor: Maine → New YorkHome state, plus the client state if you work there
- Moved mid-year: Maine → New YorkTwo part-year returns
Other Maine pairs
Questions people actually ask
I live in Maine and work remotely for a New York employer. Which state do I pay?
Remote does not mean untaxed here. New York applies a convenience-of-the-employer test, so unless your employer can show the remote arrangement is a necessity rather than your preference, New York taxes the income. Maine taxes it too as resident income and gives a credit against its own tax.
Which state should my employer be withholding for?
Both, potentially — and that is the problem. New York expects withholding because it claims the income, while Maine taxes you as a resident. Many employers withhold only for New York, which leaves a Maine balance due at filing unless you make estimated payments during the year.
Will I end up paying tax twice on the same income?
Not twice over, but you will pay the higher of the two rates. Maine gives residents a credit for tax paid to New York on the same income, claimed on Form 1040ME Schedule A. The credit is capped at the Maine tax on that income, so if New York taxes it more heavily the excess is not refunded by either state.
How current is this?
The Maine and New York rules on this page were last checked against Maine Revenue Services and New York State Department of Taxation and Finance 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.
- Maine Revenue Services — individual income taxaccessed 2026-08-07
- New York State Department of Taxation and Finance — individual income taxaccessed 2026-08-07