Live in Nebraska, Work Remotely for a Maryland Employer: Who Taxes You?
Answer
Only Nebraska taxes you. Maryland levies no personal income tax on wages, so nothing is withheld there and you file no Maryland return. Nebraska taxes its residents on all income wherever earned, which means your Maryland earnings go on a Nebraska 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. Maryland takes nothing, but Nebraska still taxes residents on income earned anywhere, so the full amount lands on your Nebraska return.
Maryland also has a layer below the state one, and it is the layer that survives every agreement: Every Maryland county and Baltimore City levies its own income tax, collected on the state return. A reciprocity agreement exempts wages from the Maryland state tax only — it never reaches the county tax. Nonresidents who are not covered by an agreement pay a special nonresident rate in place of the county tax. Pennsylvania carries one further condition: a Pennsylvania resident exempt from the Maryland state tax remains liable for the Maryland local tax unless their own Pennsylvania jurisdiction imposes no earnings tax on Maryland residents.
What you file
- 1Resident return · Nebraska
File a Nebraska resident return reporting all of your income.
The two states, side by side
| Nebraska | Maryland | |
|---|---|---|
| Taxes wages | Yes — graduated | Yes — graduated |
| Reciprocity partners | None | 4 (Form MW507) |
| Convenience rule | Yes — general rule | No |
| Nonresident return | Form 1040N with Schedule III | Form 505 with Form 505NR |
| Credit for other-state tax | Form 1040N Schedule II | Form 502CR |
| Nonresident safe harbour | None published | None published |
| Local income tax | No | Yes |
| Revenue department | Nebraska Department of Revenue | Comptroller of Maryland |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Maryland and working in Nebraska gives:Convenience-of-the-employer rule — both states tax you.
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: Nebraska → MarylandBoth states — credit offsets the double tax
- 1099 contractor: Nebraska → MarylandHome state, plus the client state if you work there
- Moved mid-year: Nebraska → MarylandTwo part-year returns
Other Nebraska pairs
Questions people actually ask
I live in Nebraska and work remotely for a Maryland employer. Which state do I pay?
Only Nebraska taxes you. Maryland levies no personal income tax on wages, so nothing is withheld there and you file no Maryland return. Nebraska taxes its residents on all income wherever earned, which means your Maryland earnings go on a Nebraska resident return in full.
Which state should my employer be withholding for?
Nebraska. Your employer should withhold Nebraska tax rather than Maryland tax on these wages. If a Maryland line is showing on your pay stub, raise it with payroll now rather than at filing time.
Does my Maryland employer's location alone create a Maryland tax obligation?
No. Maryland 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 Maryland are a different matter — those are Maryland-source income and can require a nonresident return.
How current is this?
The Nebraska and Maryland rules on this page were last checked against Nebraska Department of Revenue and Comptroller of Maryland 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.
- Nebraska Department of Revenue — individual income taxaccessed 2026-08-07
- Comptroller of Maryland — individual income taxaccessed 2026-08-07
- Maryland — Form MW507accessed 2026-08-07