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Live in New Mexico, Work Remotely for a Kansas Employer: Who Taxes You?

Home state onlyNew Mexico withholds

Answer

Only New Mexico taxes you. Kansas levies no personal income tax on wages, so nothing is withheld there and you file no Kansas return. New Mexico taxes its residents on all income wherever earned, which means your Kansas earnings go on a New Mexico 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. Kansas takes nothing, but New Mexico still taxes residents on income earned anywhere, so the full amount lands on your New Mexico return.

What you file

  1. 1Resident return · New Mexico

    File a New Mexico resident return reporting all of your income.

The two states, side by side

 New MexicoKansas
Taxes wagesYes — graduatedYes — graduated
Reciprocity partnersNoneNone
Convenience ruleNoNo
Nonresident returnForm PIT-1 with Schedule PIT-BForm K-40 with Schedule S Part B
Credit for other-state taxForm PIT-1 (credit for taxes paid to another state)Form K-40 (credit for taxes paid to other states)
Nonresident safe harbourNone publishedNone published
Local income taxNoNo
Revenue departmentNew Mexico Taxation and Revenue DepartmentKansas Department of Revenue
Last verified

The other direction

Reversing the commute does not always reverse the answer. Living in Kansas and working in New Mexico gives:Home state only.

Kansas to New Mexico →

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.

Other New Mexico pairs

Questions people actually ask

I live in New Mexico and work remotely for a Kansas employer. Which state do I pay?

Only New Mexico taxes you. Kansas levies no personal income tax on wages, so nothing is withheld there and you file no Kansas return. New Mexico taxes its residents on all income wherever earned, which means your Kansas earnings go on a New Mexico resident return in full.

Which state should my employer be withholding for?

New Mexico. Your employer should withhold New Mexico tax rather than Kansas tax on these wages. If a Kansas line is showing on your pay stub, raise it with payroll now rather than at filing time.

Does my Kansas employer's location alone create a Kansas tax obligation?

No. Kansas 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 Kansas are a different matter — those are Kansas-source income and can require a nonresident return.

How current is this?

The New Mexico and Kansas rules on this page were last checked against New Mexico Taxation and Revenue Department and Kansas Department of Revenue 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.