State Guide · South Dakota Resident / California Employer
Living in South Dakota,
Working for a California Company
Your tax situation changes significantly depending on whether you work from home or commute to California. Here's exactly what applies to you.
🏠 If You Work From Home in South Dakota (Fully Remote)
Withholding
Your employer should NOT withhold California taxes. Since you work remotely from South Dakota which has no income tax, you owe $0 in state income tax. Verify California taxes are not being withheld.
Filing
No state income tax returns required in either state.
🏢 If You Commute to California (In-Office)
Withholding
Your employer will typically withhold California state taxes for days you physically work there.
Filing
File a Nonresident Return with California to report income earned there. Then file a Resident Return in South Dakota and claim a credit for taxes paid to California — so you are not double-taxed.
Because tax situations — especially surrounding remote work — can be complex, verify your specific W-2 reporting by consulting a tax professional or your employer's HR payroll system.
Ready to file?
Multi-state returns can be complex. TurboTax handles both states in one workflow, or connect with a CPA who specializes in remote workers.
File Accurately — Recommended Tools
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