| Part of a series on Taxation |
| Taxation in the United States |
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| Federal taxation |
| Authority · History Internal Revenue Service (Court • Forms • Code • Revenue) Taxpayer standing Income tax · Payroll tax Alternative Minimum Tax Estate tax · Excise tax Gift tax · Corporate tax Capital gains tax |
| State and local taxation |
| State income tax State tax levels Sales tax · Use tax Property tax Land value tax |
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Taxation by country
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U.S. State Nonresident Withholding Tax is a mandatory prepayment of tax of individuals or entities that are not resident in the State. A common example of this is the taxation of oil and natural gas royalty interest revenue. In order to ensure that the State receives a portion of the revenue from oil and gas leases within the State, any payments made to an address outside of the State require that a tax be withheld and paid directly to the State.
States that have enacted such laws include, but are not limited to:
A majority of states with income taxes impose similar requirements on partnerships (including LLCs) and S corporations with nonresident partners or shareholders. All states with income taxes impose a similar withholding obligation on wages paid to nonresidents by businesses operating within the state.[1]
The taxes withheld must be treated as prepaid taxes, with final taxes imposed at the same rate and under the same computations for residents and nonresidents.