Yes, international students may be required to pay state taxes in addition to federal taxes, depending on the state where they live and work. However, the requirements and rules vary by state, so it’s important to understand the specific tax rules for the state in which you're residing. Here's a general breakdown:

1. State Taxes vs. Federal Taxes

• Federal Taxes: All international students who earn income in the U.S. are required to file federal taxes with the IRS (U.S. Internal Revenue Service) using Form 1040-NR (for nonresident aliens) or Form 1040 (for resident aliens, if applicable). Federal taxes apply to your U.S.-sourced income (wages, scholarships, etc.) and are governed by the IRS.

• State Taxes: States in the U.S. have their own tax systems, and each state determines whether you are required to file a state income tax return. State taxes generally apply to your income earned within the state, such as wages from an on-campus job or other employment.

2. Do All States Have State Income Taxes?

• No, not all states have a state income tax. There are 9 states that do not impose an income tax on wages or salary:

  1. Alaska

  2. Florida

  3. Nevada

  4. South Dakota

  5. Texas

  6. Washington

  7. Wyoming

  8. Tennessee (Note: Tennessee only taxes interest and dividends, not wages)

  9. New Hampshire (also taxes interest and dividends, not wages)

If you live in one of these states, you will not need to pay state income taxes on your wages or other earned income, although you may still be subject to other types of state taxes (such as sales tax, property tax, or state-specific fees).

3. State Tax Filing Requirements for International Students

• If you live in a state with a state income tax, you will generally be required to file a state tax return in addition to your federal tax return.

• Just like with federal taxes, the specific rules for whether you need to file, how much you owe, and any potential exemptions or tax credits can vary by state. For example:

  • California: California requires that all residents and those earning income within the state file a state tax return. Even if you’re a nonresident alien (such as an F-1 student), you may be required to file.

  • New York: Similar to California, New York requires nonresidents earning income within the state to file a state tax return.

• Residency Status for State Taxes: For state tax purposes, residency definitions can vary. While you may be considered a nonresident alien for federal tax purposes, you could be considered a resident or nonresident for state tax purposes depending on how much time you spend in the state, whether you have a job there, or if you have a permanent address. Some states follow the federal definition of residency, while others have their own rules.

4. Tax Treaties and State Taxes

• If your home country has a tax treaty with the U.S., you might be exempt from some U.S. federal taxes on income (e.g., wages, scholarships), but tax treaties typically do not apply to state taxes. This means that even if you’re exempt from federal tax on certain income due to a treaty, you might still be required to pay state taxes on the same income.

• For example, if a tax treaty exempts you from paying federal tax on income from on-campus employment, you could still be liable for state taxes in the state where you work.

5. State Income Tax Rates

• The state income tax rates and rules vary widely across the U.S. Some states have a flat tax rate (the same rate for all income levels), while others have graduated tax rates (where the rate increases as your income rises). For example:

  • California has a progressive tax system with tax rates ranging from 1% to 13.3% depending on your income.

  • New York has a progressive tax system as well, ranging from 4% to 8.82% depending on your income level.

6. Other State Taxes

• Even if you're not required to pay state income tax, you might still be subject to other types of state taxes, such as:

  • Sales tax: Applied to goods and services purchased in the state.

  • Property tax: If you own property (e.g., a car or real estate).

  • State-specific fees or taxes.

7. What If You Don’t File State Taxes?

• Penalties: If you fail to file your state taxes when required, you may be subject to penalties and interest charges on any unpaid tax. These penalties can add up over time, similar to the federal tax penalties for failing to file.

• Missed Refunds: Just like with federal taxes, if you’re due a state tax refund and don’t file, you may forfeit your ability to claim that refund.

• Immigration Implications: While failure to file state taxes typically won’t directly affect your immigration status, noncompliance with U.S. tax laws in general can raise red flags during future visa applications or renewals, as tax filing compliance is an important factor in maintaining good standing with U.S. immigration authorities.

Summary of Key Points:

• Federal taxes: Required if you earn income in the U.S., filed with the IRS.

• State taxes: Required in most states with income tax, and the rules vary by state.

• Some states have no income tax (e.g., Florida, Texas, Washington).

• You may still need to file state taxes even if exempt from federal taxes under a tax treaty.

• Failing to file state taxes can result in penalties, missed refunds, and other legal issues.

Steps to Take:

1. Check if your state has an income tax: Find out if your state imposes state income taxes.

2. Determine your filing requirements: Check whether you're required to file a state return based on your income and residency status in that state.

3. File your state return: File your state tax return by the state’s deadline to avoid penalties.

Would you like help with understanding your specific state tax obligations, or have questions about a particular state’s tax rules?