multi-state taxation

Multi-state taxation refers to the process where individuals or businesses pay taxes to more than one state because they earn income or have a presence in multiple states. Each state has its own tax laws and rates, so if you work, own property, or generate income across different states, you may need to file multiple state tax returns. To prevent double taxation, states often provide credits for taxes paid to other states. This system ensures that the income is taxed fairly based on where it was earned, while avoiding being taxed multiple times for the same income.