State Income Tax for International Students: What You Owe Beyond Your Federal Return

State and federal tax returns are separate filings

The IRS decides your federal tax return. A different agency, your state department of revenue, decides whether you owe state income tax. The two systems use different rules, different forms, and different deadlines, so a federal answer does not settle your state question.

If you earned wages, a taxable scholarship, or other US-source income while studying in a state that collects income tax, you likely need to file a state return too. Some universities' free access to Sprintax covers the federal return only, so check whether your state return needs separate software or a paper form.

A federal tax treaty exemption does not automatically apply at the state level

The United States signs tax treaties at the federal level, described in IRS treaty guidance , and those treaties bind the federal government, not individual states. Many states build their tax code on top of federal taxable income, but a state is free to tax income that came off your federal return under a treaty article you claimed on your 1040-NR.

Wages or a stipend exempted federally under a treaty can still count as taxable income on your state return. Check your specific state's guidance for nonresident aliens before assuming your treaty benefit carries over, since the rule differs state by state.

State residency status is its own test

Your federal nonresident alien status comes from the substantial presence test and the student exemption built into it. States do not use this test. Most states look at where you live and how long you were physically present in that state during the year, regardless of your immigration status or federal nonresident classification.

A state can treat you as a full-year resident for state tax purposes even while the IRS treats you as a nonresident alien federally. That changes your standard deduction, your filing form, and which income the state taxes.

States with no income tax at all

If your school sits in one of these states, wage and scholarship income skips the state income tax question entirely.

Source: Tax Foundation state income tax data . Every other state, plus Washington DC, taxes at least some income and expects a return from nonresidents who earned money there.

State tax withholding on your paycheck

Your employer may withhold state tax from each paycheck the same way it withholds federal tax, based on a state withholding form similar to the W-4. If you claim exempt status incorrectly on that state form, you risk owing a larger bill when you file, since not enough was set aside during the year. If your total income stays under your state's filing threshold, you can often reclaim withheld state tax as a refund after filing a return.

If you move between states mid-year

Transferring schools, doing an internship in another state, or starting OPT in a new state usually means you owe a part-year or nonresident return in each state where you earned income that year. Keep pay records organized by state so you can split your income correctly when you file multiple state returns for the same year.

How to find your state's actual rules

• Search "[your state] department of revenue nonresident alien" or "[your state] department of revenue international student."

• Look for a state filing threshold, often lower than the federal threshold and sometimes with no minimum at all for nonresidents.

• Check whether your state has its own version of Form 8843 or a state-specific nonresident form.

• Ask your school's international student office which state software they recommend, since many partner with Sprintax or a similar nonresident-focused provider for state returns.

Situations that trip up students

• You do CPT or OPT work in a different state than your school. You may owe a part-year or nonresident return in that second state.

• Your on-campus job withheld state tax, but your income falls under your state's filing threshold. You may be able to file for a refund of that withholding.

• You received a fellowship stipend with no state withholding at all. You still owe the tax if your state taxes it, even without a withholding record.

What this means for your filing season

Finish your federal 1040-NR and Form 8843 first, since your state return often pulls numbers from the federal one. Then check your state's specific page for nonresident aliens rather than assuming the treaty exemption or nonresident status you established federally applies again. If you worked in more than one state during the year, you likely owe a return in each state where you earned income.