Originally Posted by
IBE8720
how does the tax system work in the U.S? Universal federal tax rate or do individual states have their own tax system?
If my employer is based in New York, and I am based in Greenboro Alabama, do I pay New York or Alabama tax?
It’s a bit of both. You’ll pay federal tax on your wages and then state tax, based on your state of residence. There are some states that will require additional but fairly small taxes, if you are based there. So, for example you work for a company headquartered in New York but lived in Florida and you were based in New Jersey. You’d pay federal taxes, no state tax for Florida (FL doesn’t do state taxes) and a small amount of taxes for NJ that covers things like parental leave.
It’s been a while, so I forget the specifics but you should get the idea and remember…NEVER take financial or monetary advice from a pilot.