The pay of an air carrier employee who has regularly assigned duties on an aircraft in at least two states (for example, a pilot or flight attendant) is subject to income taxation by their state of residence and any state in which the employee earns more than 50% of the pay received.
Just so, are state taxes based on gross income?
Most states start with federal adjusted gross income but a few start with federal taxable income. And most states, but not all, require taxpayers who itemize their federal tax deductions and claim deductions for state and local income taxes to add back this deduction on their state income tax return.
Secondly, do pilots make 300k? There are some test pilots and ATPs who are flying corporate/private jets who make around $300,000 but few and far in between as far as I know. When a company like Gulfstream or Dassault hire test pilots they may advertise salaries higher than most senior airline captains. At most airlines they'll never make that much.
In this manner, what determines your state income tax?
State income tax is a direct tax levied by a state on your income. Income is what you earned in or from the state. In your state of residence it may mean all your income everywhere. Like federal tax, state income tax is self-assessed, which means taxpayers file required state tax returns.
Which states do not have state income tax deducted from employee pay?
As of 2020, seven states—Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming—levy no state income tax. 1? Two others, New Hampshire and Tennessee, don't tax earned wages. They do currently tax investment income and interest, but both are set to eliminate those taxes soon.
