Live in Texas, Work Remotely for a Tennessee Employer: Who Taxes You?
Answer
No state income tax applies at all. Tennessee does not tax wages and neither does Texas, which makes this one of the small number of state pairs where the whole question disappears: no withholding, no nonresident return, no resident return, no credit to claim.
Last verified
Most of the difficulty in multi-state wage tax comes from two states claiming the same income. Here neither one claims it. Texas and Tennessee both sit outside the state income tax system, so there is no competition to resolve.
What you file
There is nothing to file in either Texas or Tennessee on these wages. Your federal return is unaffected — the federal government taxes the income whatever the states do.
The two states, side by side
| Texas | Tennessee | |
|---|---|---|
| Taxes wages | No | No |
| Reciprocity partners | None | None |
| Convenience rule | No | No |
| Nonresident return | Not applicable | Not applicable |
| Credit for other-state tax | No income tax | No income tax |
| Nonresident safe harbour | Not applicable | Not applicable |
| Local income tax | No | No |
| Revenue department | Texas Comptroller of Public Accounts | Tennessee Department of Revenue |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Tennessee and working in Texas gives:No state income tax either side.
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: Texas → TennesseeNo state income tax either side
- 1099 contractor: Texas → TennesseeNo state income tax either side
- Moved mid-year: Texas → TennesseeNo state return either side
Other Texas pairs
Questions people actually ask
I live in Texas and work remotely for a Tennessee employer. Which state do I pay?
No state income tax applies at all. Tennessee does not tax wages and neither does Texas, which makes this one of the small number of state pairs where the whole question disappears: no withholding, no nonresident return, no resident return, no credit to claim.
Which state should my employer be withholding for?
Neither. There is no state income tax to withhold on either side of this pairing, so a state line on your pay stub for Texas or Tennessee is an error worth querying.
How current is this?
The Texas and Tennessee rules on this page were last checked against Texas Comptroller of Public Accounts and Tennessee 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.
- Texas Comptroller of Public Accounts — individual income taxaccessed 2026-08-07
- Tennessee Department of Revenue — individual income taxaccessed 2026-08-07