Skip to main content
April 6, 2024
Question

If i have a rental property outside of pa, do i need to pay state tax on the rental income earned in other state?

  • April 6, 2024
  • 1 reply
  • 0 views
do I need to pay PA state tax on the rental income earned in other state?

1 reply

April 6, 2024

Both states will tax you but PA will give you a credit for the rental income taxed in the non-resident state. Complete the non-resident tax return first, then your resident state so everything flows through as it should. 

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
taxcircleAuthor
April 6, 2024

Thank you for your reply! if the state where the rental property located is income tax free state, I don't need to file non-resident in that state? All of the rental income received from the other state will be fully taxed in PA? thank you.

April 7, 2024

Yes, that is correct. In your case, all rental income will be taxed on your resident state tax return regardless of the property's state income tax free location.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"