- Two requirements the federal process does not trigger
- Table A: state backup withholding
- The TIN problem: where matching before payment prevents the withholding
- Table B: withholding on non-wage payments to nonresidents
- Pass-through entity withholding is a different topic
- State by state
- Building it into the W-9 process
- Questions people ask
- Sources and method
Two requirements the federal process does not trigger
An AP team that collects a W-9, runs IRS TIN matching, works the CP2100 and starts 24 percent backup withholding on the 30th business day has done everything federal law asks. None of it tells the team that a state wants a cut of the same payment. State withholding on non-wage payments comes in two kinds, and both live outside the federal loop.
State backup withholding is the state counterpart of IRC 3406. Three states (California, Maine and Vermont) key it to the federal trigger: if you must apply federal backup withholding to a payment, you withhold for the state as well. Five others (Colorado, Georgia, Minnesota, North Carolina and South Carolina) wrote their own trigger: a missing TIN, a TIN the state or the IRS says is wrong, or an ITIN on a payment for services, each with its own rate and in some cases its own threshold. Those five apply whether or not the federal rule is in play, and three of them (Colorado, Georgia and South Carolina) treat an ITIN itself as the trigger, which the federal rule never does.
Nonresident non-wage withholding is a prepayment of the payee’s state income tax, taken because the payee lives somewhere else and the state has no other hold on the money. Who it reaches varies a great deal: every California-source contractor over $1,500; nonresident entertainers in five states; unregistered construction contractors in three; mineral royalty owners in five; and film loan-out companies in a growing list. A TIN that matches does nothing to stop it. What stops it is an exemption certificate, a waiver, a registration, or the payee being a resident.
The two tables below cover all 50 states and the District of Columbia. A state that does not appear in the required rows appears in one of three lower groups: the statute or department says the withholding is not required; no provision was found in the wage withholding statute or employer guide (an inference, labelled as such); or the state has no individual income tax. Pass-through entity withholding on distributions to nonresident owners, and real estate withholding on nonresident sellers, are different regimes and are only noted.
Table A: state backup withholding
State tax withheld because of a TIN problem, or because federal backup withholding applies. The rate is a percentage of the payment unless the row says otherwise. Statute and agency citations are as checked on November 1, 2026; the state links go to the detail sections below.
| State | Rate | Trigger | Forms | Statute |
|---|---|---|---|---|
| Required (8 states) | ||||
| California | 7% | Federal backup withholding applies to the payment (R&TC 18664 conforms to IRC 3406); not interest, dividends, loan fund releases or real estate | Form 592 and 592-V by period; Form 592-B to the payee by January 31 | R&TC 18664; 18 CCR 18662-0 to 18662-8 |
| Colorado | Colorado individual rate (4.40% in the 2023 statute printout; temporary reductions under 39-22-627 may apply) | Payment for services to a natural person reported on any Form 1099 when the payee fails to provide a validated TIN (an SSN or ITIN confirmed through IRS TIN matching or an approved equivalent) or provides an ITIN; unreported service payments without a validated TIN | Reported as employer wage withholding (39-22-604(18)(d)); the statute names no separate form | C.R.S. 39-22-604(18) |
| Georgia | 6% | 1099-NEC compensation for labor services physically performed in Georgia paid to an individual with no TIN, an incorrect TIN (IRC 3406 standard) or an ITIN | Form G-7 quarterly; Form G-1003 with the 1099-NECs by January 31 | O.C.G.A. 48-7-101(i); 2026 Employer’s Tax Guide |
| Maine | 5% flat | The payer must withhold federal tax on the non-wage payment, including IRC 3406 backup withholding | Form 941ME quarterly; Form W-3ME by February 28; 1099 to the payee | 36 M.R.S. 5255-B; MRS Rule 803 |
| Minnesota | 9.85% | Reportable payment for personal services when the payee gives no SSN or TIN, is subject to federal 3406 withholding, or the Commissioner says the number is wrong | Regular Minnesota withholding deposits and the annual return; 1099-NEC or MISC to the payee | Minn. Stat. 290.92, subd. 26 |
| North Carolina | 4% | Non-wage compensation over $1,500 a year for services performed in North Carolina paid to a person who gives no TIN or one the Secretary says is invalid; ITIN contractors | NC-5 series; Form NC-3 by January 31; Form NC-1099M or 1099-NEC/MISC | G.S. 105-163.1(9a), 105-163.3 |
| South Carolina | Maximum SC individual income tax rate (a flat 7% before 2024 Act 215) | Compensation reported on Form 1099 paid to an individual who gives no TIN or SSN, an incorrect one, or an ITIN | Deposited with the agent’s withholding; WH-1605 and WH-1606; 1099 copies with WH-1612 | S.C. Code 12-8-595 |
| Vermont | Prescribed by the Commissioner; GB-1210 says non-periodic payments can be estimated at 30% of the federal withholding (7.2% of the payment at the 24% federal rate) | Payment subject to federal withholding and to Vermont income tax; banks are exempt for payments subject to federal backup withholding | Form WHT-436 quarterly; Form WHT-434 by January 31; 1099 to the payee | 32 V.S.A. 5841(a); GB-1210 (2026) |
| Confirmed not required: the statute or the department says so (7) | ||||
| Illinois | Publication 130 lists payments subject to withholding under IRC 3405 or 3406 as not subject to Illinois withholding | |||
| Iowa | Iowa Code 422.16(2)(c) ties non-wage withholding to IRC 3402(o), (p), (s) and 3405 payments to residents; 3406 is not referenced | |||
| Kansas | K.S.A. 79-3295(h) defines payments other than wages as a closed list; 3406 payments are not on it | |||
| Massachusetts | 830 CMR 62B.2.1 cites IRC 3406 only for gambling winnings | |||
| Michigan | MCL 206.703 covers wages, pensions, gambling winnings and production company payments; no 3406 reference | |||
| Nebraska | Neb. Rev. Stat. 77-2753(6) excludes payments subject to 26 U.S.C. 3406; Circular EN says backup withholding on interest and dividends is not required | |||
| New York | Tax Law 671 covers wages and listed non-wage items; 3406 is not referenced | |||
| Not required, inferred (27): the withholding statute or employer guide has no backup withholding provision | ||||
| Alabama | Inferred from the wage withholding statute or employer guide: no provision found in Ala. Code 40-18-70 et seq.; DOR withholding guide | |||
| Arizona | Inferred from the wage withholding statute or employer guide: no provision found in A.R.S. 43-401, 43-404 | |||
| Arkansas | Inferred from the wage withholding statute or employer guide: no provision found in DFA Withholding Tax Instructions | |||
| Connecticut | Inferred from the wage withholding statute or employer guide: no provision found in Conn. Gen. Stat. 12-705; DRS nonpayroll withholding page | |||
| Delaware | Inferred from the wage withholding statute or employer guide: no provision found in 30 Del. C. 1151 | |||
| District of Columbia | Inferred from the wage withholding statute or employer guide: no provision found in D.C. Code 47-1812.08 | |||
| Hawaii | Inferred from the wage withholding statute or employer guide: no provision found in HRS 235-61; Booklet A | |||
| Idaho | Inferred from the wage withholding statute or employer guide: no provision found in Idaho Code 63-3035 | |||
| Indiana | Inferred from the wage withholding statute or employer guide: no provision found in IC 6-3-4-8; Departmental Notice 1 | |||
| Kentucky | Inferred from the wage withholding statute or employer guide: no provision found in KRS 141.310 | |||
| Louisiana | Inferred from the wage withholding statute or employer guide: no provision found in La. R.S. 47:111 | |||
| Maryland | Inferred from the wage withholding statute or employer guide: no provision found in Md. Code, Tax-Gen. 10-906 | |||
| Mississippi | Inferred from the wage withholding statute or employer guide: no provision found in Pub. 89-700 (rev. 1/2026) | |||
| Missouri | Inferred from the wage withholding statute or employer guide: no provision found in RSMo 143.191 et seq.; DOR withholding pages | |||
| Montana | Inferred from the wage withholding statute or employer guide: no provision found in MCA 15-30-2501 et seq.; DOR guides | |||
| New Jersey | Inferred from the wage withholding statute or employer guide: no provision found in N.J.S.A. 54A:7-1; NJ-WT (Sept. 2025) | |||
| New Mexico | Inferred from the wage withholding statute or employer guide: no provision found in NMSA 1978 ch. 7, art. 3; TRD program pages | |||
| North Dakota | Inferred from the wage withholding statute or employer guide: no provision found in N.D.C.C. 57-38-59; withholding guideline | |||
| Ohio | Inferred from the wage withholding statute or employer guide: no provision found in ORC 5747.06 | |||
| Oklahoma | Inferred from the wage withholding statute or employer guide: no provision found in 68 O.S. 2385.1 et seq.; OTC withholding page | |||
| Oregon | Inferred from the wage withholding statute or employer guide: no provision found in ORS 316.167 | |||
| Pennsylvania | Inferred from the wage withholding statute or employer guide: no provision found in 72 P.S. 7316 et seq.; DOR withholding pages | |||
| Rhode Island | Inferred from the wage withholding statute or employer guide: no provision found in R.I. Gen. Laws 44-30-71 | |||
| Utah | Inferred from the wage withholding statute or employer guide: no provision found in Utah Code 59-10-402 | |||
| Virginia | Inferred from the wage withholding statute or employer guide: no provision found in Va. Code 58.1-461 | |||
| West Virginia | Inferred from the wage withholding statute or employer guide: no provision found in W. Va. Code 11-21-71 | |||
| Wisconsin | Inferred from the wage withholding statute or employer guide: no provision found in Wis. Stat. 71.63 to 71.67; Publication W-166 | |||
| No individual income tax (9) | ||||
| Alaska | No individual income tax (Department of Revenue tax program list) | |||
| Florida | No individual income tax (Fla. Const. art. VII, s. 5 (the Department’s FAQ page returned no text; no saved source text)) | |||
| Nevada | No individual income tax (Department of Taxation) | |||
| New Hampshire | No tax on this income. Interest and Dividends Tax (repealed). No saved primary source; the Department’s site blocked automated retrieval | |||
| South Dakota | No individual income tax (Department of Revenue tax list) | |||
| Tennessee | No tax on this income. Hall Income Tax (repealed). No saved primary source; the Department’s site blocked automated retrieval | |||
| Texas | No individual income tax (Tex. Const. art. VIII, s. 24-a; Comptroller tax list) | |||
| Washington | No individual income tax (Department of Revenue: “Washington does not currently have an individual income tax”) | |||
| Wyoming | No individual income tax (Department of Revenue) | |||
Vermont: the statute sets the duty and leaves the rate to the Commissioner; the figure shown is the Department’s guidance for non-periodic payments, not a stated backup withholding rate. South Carolina and Colorado: the rate is set by reference to the top individual rate and the statute does not state a percentage. See each state’s page.
The TIN problem: where matching before payment prevents the withholding
In Colorado, Georgia, Minnesota, North Carolina and South Carolina the state withholding starts because of the payee’s TIN, not because of residence. Minnesota withholds 9.85 percent on personal service payments when the worker gives no SSN or TIN or the number is wrong; North Carolina withholds 4 percent on services performed in the state when the payee gives no TIN or one the Secretary has declared invalid; Georgia withholds 6 percent on 1099-NEC labor services when the individual gives no TIN, an incorrect TIN or an ITIN; South Carolina withholds at its top individual rate on Form 1099 compensation on the same three triggers; and Colorado withholds at its individual rate on any 1099 service payment to a natural person whose SSN or ITIN the payer has not confirmed through the IRS TIN matching program, a definition that names the program outright. These are the direct state counterparts of federal backup withholding, and they are the one place on this page where TIN matching before the first payment prevents the withholding entirely: a payee whose name and TIN match IRS records before the first check has given the state what it asks for, and in Colorado the match record is the statute’s own definition of a validated number. California, Maine and Vermont follow the federal trigger instead, so a match that keeps federal backup withholding off keeps theirs off too.
The ITIN trigger deserves a separate line. An ITIN is a valid TIN for federal purposes: a payee with an ITIN who certifies it on a W-9 is not subject to federal backup withholding, and it passes IRS TIN matching. Colorado, Georgia and South Carolina withhold on 1099 service payments to such a payee anyway, and North Carolina treats ITIN contractors as a class of their own. A payer that treats “TIN matches” as the end of the question in those states will under-withhold. The ITIN guide explains how to recognise one (the 9xx-7x to 9xx-99 ranges).
Table B: withholding on non-wage payments to nonresidents
Grouped by what the rule reaches. Rhode Island’s contractor holdback is included because an AP team meets it in the same place, though it is a tax security deposit rather than income tax withholding, and the mineral regimes in Montana and Utah apply to residents as well. The film loan-out rows in Illinois and Michigan come from the general withholding statutes and were not surveyed in detail; the rows say so.
| State | Applies to | Threshold | Rate | Forms | Statute |
|---|---|---|---|---|---|
| General nonresident payments | |||||
| California | Nonresident individuals; corporations, partnerships and LLCs not qualified with the Secretary of State and without a permanent California place of business; services in California, rents, royalties, entertainers and athletes | Over $1,500 a year | 7% | Form 592 and 592-V; Form 590 exemption; Forms 588 (waiver) and 589 (reduction); Form 592-B by January 31 | R&TC 18662; 18 CCR 18662-0 to 18662-8 |
| North Carolina | Nonresident contractors paid for a performance, entertainment, athletic event, speech or film, radio or TV program; ITIN contractors; entities without a North Carolina certificate of authority | Over $1,500 a year | 4% | NC-5 series; Form NC-3; Form NC-1099M or 1099-NEC/MISC; payer keeps residency or registration documentation | G.S. 105-163.3 |
| South Carolina | Nonresidents doing business or performing personal services of a temporary nature in South Carolina; separately, nonresident rent and royalty payees | Contracts: SC portion over $10,000; rent and royalties: $1,200 or more a year | 2% of each contract payment; rent and royalties at the maximum individual rate (5% for corporations) | Form I-312 affidavit kept by the payer; WH-1605 and WH-1606; 1099 | S.C. Code 12-8-550; 12-8-540 |
| Pennsylvania | Nonresident individuals and single-member disregarded entities paid 1099-MISC or NEC compensation; nonresident individual, estate or trust lessors of Pennsylvania real estate | Over $5,000 a year (optional below) | 3.07% | Form REV-1832 exemption; myPATH account; REV-1667 with the 1099s by January 31 | 72 P.S. 7324.4 (Act 43 of 2017) |
| Nebraska | Nonresident individuals paid for personal services performed substantially in Nebraska; entities 80% or more owned by the individuals performing the services | Over $600 (payor with a Nebraska office) or over $5,000 | 4% of net payments under $28,000; 6% at $28,000 or more | Form W-4NA; Form W-4NB; Form 941N; 1099-NEC | Neb. Rev. Stat. 77-2753(2) |
| Kansas | Nonresidents paid management or consulting fees by a Kansas for-profit entity for services physically performed in Kansas | None | 5% | KW-5 deposits; KW-3 annual; 1099 | K.S.A. 79-32,100a(d) |
| Iowa | Nonresidents receiving Iowa-source non-wage income: personal services, entertainers (not entertainment corporations), rents, royalties, temporary businesses | None stated; a payee with $1,000 or less of Iowa net income is exempt | 5% under rule 701-307.4; the Department’s Form 44-017 computes the alternative payment at 3.8% | Form 44-017 release; Form 44-095; 1099 | Iowa Code 422.16(2)(b); 701-307.4 |
| Entertainers and athletes | |||||
| Minnesota | Nonresident entertainers and entertainment entities; nonresident public speakers | $600 or more ($2,000 for public speakers) | 2% | Form ETD monthly; Form ETA by January 31; Form MWR for Michigan and North Dakota residents; 1099-NEC | Minn. Stat. 290.9201 |
| Connecticut | Athletes, entertainers, performing entities and loan-out companies paid by a Connecticut venue or lessee | Over $1,000 per performance | 6.99% | Form CT-588 reduced rate; Form CT-590 waiver; Form CT-592; CT-945 ATHEN and CT-1096 ATHEN by January 31 | Conn. Gen. Stat. 12-705, 12-707; PS 2018(1) |
| Missouri | Nonresident entertainers, their crews and nonresident promoters paid for live performances in Missouri | Over $300 | 2% | Form MO-1ENT quarterly; Form MO-2ENT to the entertainer | RSMo 143.183; 12 CSR 10-2.226 |
| Wisconsin | Nonresident entertainers and foreign entertainment entities | Contract price over $7,000 | 6% (or a bond or cash deposit) | Form WT-11 within 5 days of the performance; Form WT-12 lower rate or waiver | Wis. Stat. 71.80(15); Publication 508 |
| Massachusetts | Performers and performing entities paid by a Massachusetts venue, lessee or promoter | Over $5,000 per payer a year; over $10,000 per event for 501(c) payers | Massachusetts individual income tax rate (5% per the DOR guide) | Form PWH-WW waiver; Form PWH-RW reduction; Form PWH-WA; 1099-MISC or 1042-S | St. 2004, c. 262, s. 21; 830 CMR 62B.2.1(4)(f) |
| Construction contractors | |||||
| New Jersey | Unincorporated contractors, resident or nonresident, paid for construction services in New Jersey without a Business Registration Certificate | None | 7% | Copy of the BRC; Form NJ-550 monthly; Schedule NJ-W-3-UNC; 1099-MISC | N.J.S.A. 54A:7-1.2 |
| Nebraska | A contractor paying another contractor for construction services in Nebraska when the payee is not in the Nebraska Contractor Database (residents too) | Over $600 | 5% | Contractor Database lookup; Form 941N; 1099-NEC | Neb. Rev. Stat. 77-2753(3) |
| Rhode Island | Nonresident construction contractors: 3% of the contract price held as security for Rhode Island taxes (a deposit, not income tax withholding) | None | 3% held back | Certificate of No Tax Due; Nonresident Contractor Deposit Form | R.I. Gen. Laws 44-1-6 |
| Mineral and royalty regimes | |||||
| New Mexico | Oil and gas proceeds from New Mexico wells paid to nonresident remittees | Over $30 a quarter | 4.9% | Form RPD-41284 quarterly; Form RPD-41353 agreement; Form RPD-41285 or 1099-MISC | NMSA 1978 7-3A-1 et seq. |
| Oklahoma | Oil and gas royalties paid to nonresident royalty owners | None stated | Highest Oklahoma marginal individual rate (Form 500-B shows 4.75%) | Form WTR10002 quarterly; Form 500-B and 501 | 68 O.S. 2385.26; OAC 710:50-3-53 |
| North Dakota | Oil and gas royalties paid to nonresident individuals and entities not domiciled in North Dakota | Quarterly payments under $600 exempt | 1.75% (2.50% top rate minus 0.75%; the 2017 guideline PDF still shows 2.15%) | Form RWT-941 quarterly; Form RWT-1096 annual; Form RWT-EXM; 1099-MISC or 1042-S | N.D.C.C. 57-38-59.4 |
| Montana | Mineral royalties paid to every royalty owner, resident or not | May be skipped under $166 a period or $2,000 a year | 6% of the net royalty | Form RW-1 quarterly; Form RW-3 annual; 1099-MISC or 1042-S | MCA 15-30-2536 to 15-30-2547 |
| Utah | Mineral production payments to every recipient, resident or not | None stated | Utah individual income tax rate for the year | Form TC-941E; Form TC-675R | Utah Code 59-6-102 |
| Film production and loan-out companies | |||||
| Georgia | Production companies claiming the Georgia film tax credit paying loan-out companies for services performed in Georgia | None | Current individual rate (5.19%; 4.99% from May 11, 2026) | Form G-7 Film quarterly; Form G2-FP to the loan-out by January 31 | O.C.G.A. 48-7-40.26; Reg. 560-7-8-.45 |
| Colorado | Production companies paying personal service corporations: an information return, and withholding when the corporation fails to provide a validated TIN or gives an ITIN | None | Individual rate (39-22-104) or corporate rate (39-22-301) | Information return prescribed by the Department | C.R.S. 39-22-604(21) |
| Illinois | From December 12, 2025, film production companies and loan-out companies are responsible for Illinois withholding on compensation for services performed in Illinois (P.A. 104-0453; informational bulletin FY 2026-16) | Not in this survey | Not in this survey | See Publication 130 | 35 ILCS 5; P.A. 104-0453 |
| Michigan | Eligible film production companies withhold on payments to professional services corporations or PEOs for performing artists and crew | Not in this survey | Not in this survey | Not in this survey | MCL 206.703(9) |
| Confirmed no nonresident non-wage withholding (5) | |||||
| Illinois | Publication 130: personal service contracts and contest prizes are listed as not requiring withholding (film loan-out rule above excepted) | ||||
| Maine | Rule 803 has no nonresident contractor or entertainer rule; the 5% flat-rate rule applies only where federal withholding applies | ||||
| Michigan | MCL 206.703 has no general nonresident contractor or entertainer rule (film production rule above excepted) | ||||
| New York | Tax Law 671(a)(2) permits only voluntary agreement-based withholding on non-wage compensation | ||||
| Vermont | GB-1210: payments are subject to Vermont withholding only when subject to federal withholding | ||||
| Not required, inferred (17) | |||||
| Alabama | Inferred from the wage withholding statute or employer guide: no nonresident non-wage rule found in Ala. Code 40-18-70 et seq.; DOR withholding guide | ||||
| Arizona | Inferred from the wage withholding statute or employer guide: no nonresident non-wage rule found in A.R.S. 43-401, 43-404 | ||||
| Arkansas | Inferred from the wage withholding statute or employer guide: no nonresident non-wage rule found in DFA Withholding Tax Instructions | ||||
| Colorado | Inferred from the wage withholding statute or employer guide: no nonresident non-wage rule found in C.R.S. 39-22-604 (no general nonresident rule; the validated-TIN rule in subsection (18) is in the table above) | ||||
| Delaware | Inferred from the wage withholding statute or employer guide: no nonresident non-wage rule found in 30 Del. C. 1151 | ||||
| District of Columbia | Inferred from the wage withholding statute or employer guide: no nonresident non-wage rule found in D.C. Code 47-1812.08 | ||||
| Hawaii | Inferred from the wage withholding statute or employer guide: no nonresident non-wage rule found in HRS 235-61; Booklet A | ||||
| Idaho | Inferred from the wage withholding statute or employer guide: no nonresident non-wage rule found in Idaho Code 63-3035 | ||||
| Indiana | Inferred from the wage withholding statute or employer guide: no nonresident non-wage rule found in IC 6-3-4-8; Departmental Notice 1 | ||||
| Kentucky | Inferred from the wage withholding statute or employer guide: no nonresident non-wage rule found in KRS 141.310 | ||||
| Louisiana | Inferred from the wage withholding statute or employer guide: no nonresident non-wage rule found in La. R.S. 47:111 | ||||
| Maryland | Inferred from the wage withholding statute or employer guide: no nonresident non-wage rule found in Md. Code, Tax-Gen. 10-906 | ||||
| Mississippi | Inferred from the wage withholding statute or employer guide: no nonresident non-wage rule found in Pub. 89-700 (rev. 1/2026) | ||||
| Ohio | Inferred from the wage withholding statute or employer guide: no nonresident non-wage rule found in ORC 5747.06 | ||||
| Oregon | Inferred from the wage withholding statute or employer guide: no nonresident non-wage rule found in ORS 316.167 | ||||
| Virginia | Inferred from the wage withholding statute or employer guide: no nonresident non-wage rule found in Va. Code 58.1-461 | ||||
| West Virginia | Inferred from the wage withholding statute or employer guide: no nonresident non-wage rule found in W. Va. Code 11-21-71 | ||||
| No individual income tax (9) | |||||
| Alaska | No individual income tax (Department of Revenue tax program list) | ||||
| Florida | No individual income tax (Fla. Const. art. VII, s. 5 (the Department’s FAQ page returned no text; no saved source text)) | ||||
| Nevada | No individual income tax (Department of Taxation) | ||||
| New Hampshire | No tax on this income. Interest and Dividends Tax (repealed). No saved primary source; the Department’s site blocked automated retrieval | ||||
| South Dakota | No individual income tax (Department of Revenue tax list) | ||||
| Tennessee | No tax on this income. Hall Income Tax (repealed). No saved primary source; the Department’s site blocked automated retrieval | ||||
| Texas | No individual income tax (Tex. Const. art. VIII, s. 24-a; Comptroller tax list) | ||||
| Washington | No individual income tax (Department of Revenue: “Washington does not currently have an individual income tax”) | ||||
| Wyoming | No individual income tax (Department of Revenue) | ||||
Pass-through entity withholding is a different topic
Most states with an income tax require a partnership, S corporation or LLC to withhold or pay tax on the share of income allocated to a nonresident owner. That is a duty of the entity toward its own owners, not a duty of a payer toward a vendor, and it is out of scope here. The notes below record where the survey met it so that nobody mistakes it for the vendor rules above.
| State | Pass-through entity note (not covered on this page) |
|---|---|
| Alabama | Alabama composite returns / withholding for nonresident pass-through owners (40-18-24.2). |
| Arizona | Arizona composite returns for nonresident owners are optional; no mandatory PTE withholding. |
| Arkansas | Arkansas requires pass-through entities to withhold for nonresident members (Form AR941PT, AR1099PT). |
| California | Separate pass-through entity withholding on distributions to nonresident owners exists (Forms 592-PTE and 592-Q, 7% domestic; Forms 592-A/592-F foreign). |
| Colorado | Colorado requires composite return or withholding for nonresident owners (39-22-601(5), Form DR 0108). |
| Connecticut | Connecticut pass-through entity tax regime (elective PE tax) replaced nonresident owner withholding. |
| Delaware | Delaware S corporations and partnerships pay tax on behalf of nonresident owners (30 Del. C. 1158, 1606). |
| District of Columbia | Not applicable (DC unincorporated business franchise tax is entity-level). |
| Georgia | Georgia requires 4% withholding on distributions to nonresident members of partnerships, S corporations and LLCs (O.C.G.A. 48-7-129; Form G2-A) unless exempt. |
| Hawaii | Hawaii pass-through entities may be subject to withholding/composite rules for nonresident owners (HRS 235-? composite N-15). |
| Idaho | Idaho requires pass-through entities to pay/withhold for nonresident owners (63-3036B). |
| Illinois | Illinois requires pass-through entity withholding for nonresident owners (35 ILCS 5/709.5, Schedule K-1-P). |
| Indiana | Indiana requires pass-through entities to withhold for nonresident owners (IC 6-3-4-12, 6-3-4-13). |
| Iowa | For tax years from 2022 Iowa requires composite returns (422.16B) instead of withholding for nonresident owners. |
| Kansas | Kansas requires withholding on nonresident owners of pass-through entities (K.S.A. 79-32,139; Form KW-7). |
| Kentucky | Kentucky requires pass-through entities to withhold for nonresident individual owners (KRS 141.206). |
| Louisiana | Louisiana composite returns for nonresident partners (R.S. 47:201.1). |
| Maine | Maine requires pass-through entities to withhold for nonresident members (36 M.R.S. 5250-B; 8.93% corporate members, 7.15% others; Form 1099ME). |
| Maryland | Maryland pass-through entities pay tax on behalf of nonresident members (10-102.1). |
| Massachusetts | Massachusetts pass-through entity withholding on nonresident members exists (830 CMR 62B.2.2). |
| Michigan | Flow-through entity withholding on nonresident members applied to tax years before July 1, 2016 only (206.703(3)-(5)); replaced by the flow-through entity tax. |
| Minnesota | Minnesota requires pass-through entities to withhold for nonresident partners/shareholders (290.92 subd. 4b, 4c). |
| Mississippi | Mississippi pass-through entities may withhold/file composite for nonresident owners (27-7-25). |
| Missouri | Missouri requires withholding on nonresident partners/shareholders of pass-through entities (143.411). |
| Montana | Montana requires pass-through entities to withhold for nonresident owners (15-30-3313; Form PT-WH). |
| Nebraska | Nebraska requires pass-through entities to withhold for nonresident individual owners (77-2727). |
| New Jersey | New Jersey partnerships pay tax on behalf of nonresident partners (N.J.S.A. 54A:8-6; NJ-1065) and S corporations file for nonresident shareholders. |
| New Mexico | Same Act requires pass-through entities to withhold 5.9% (individual) / 5.9% on net income allocable to nonresident owners (Form RPD-41367). |
| New York | New York requires partnerships and S corporations to pay estimated tax on behalf of nonresident owners (Tax Law 658(c)(4), Form IT-2658). |
| North Carolina | Separate NC withholding/composite rules for nonresident partners and S corporation shareholders exist (105-154, 105-131.7). |
| North Dakota | North Dakota requires pass-through entities to withhold for nonresident owners (57-38-31.1; Form PWA/Schedule K-1). |
| Ohio | Ohio requires pass-through entities to withhold for nonresident investors (5747.41, Form IT 1140). |
| Oklahoma | Oklahoma requires 4.75% withholding on Oklahoma-source distributions to nonresident members of pass-through entities (68 O.S. 2385.29-2385.31; Forms 500-B, 501, WTP10003). |
| Oregon | Oregon requires pass-through entities to withhold for nonresident owners (ORS 314.775, Form OR-19). |
| Pennsylvania | Pennsylvania requires partnerships and S corporations to withhold PA tax on nonresident individual owners' income (72 P.S. 7324). |
| Rhode Island | Rhode Island requires pass-through entities to withhold for nonresident members (44-11-2.2; Form RI-1096PT). |
| South Carolina | Separate 12-8-590 withholding on S corporation and partnership distributions to nonresident owners (5%). |
| Utah | Utah requires pass-through entities to withhold for nonresident owners (59-10-1403.2; Form TC-65/TC-20S Schedule N). |
| Vermont | Vermont requires withholding/estimated payments by pass-through entities for nonresident owners (Form WH-435). |
| Virginia | Virginia requires pass-through entities to withhold 5% for nonresident owners (58.1-486.2). |
| West Virginia | West Virginia requires pass-through entities to withhold for nonresident owners (11-21-71a, Form NRW-2). |
| Wisconsin | Wisconsin requires pass-through entities to withhold for nonresident owners (71.775). |
42 states and DC noted. Real estate withholding on nonresident sellers (California, Colorado, Georgia, Hawaii, Maine, Maryland, Oregon, Rhode Island, South Carolina, Vermont, West Virginia and others) is a third regime, also out of scope.
State by state
One paragraph per state with at least one requirement, in alphabetical order. Each links to a page with the full detail: trigger, threshold, rate, statute, the withholding return, the exemption certificate, the payee statement, deposit and due dates, annual reconciliation, exemptions, and the sources with the date they were read.
California
Backup withholding: required Nonresident non-wage: required
California has both layers and the two interact. Under R&TC 18664 a payer that must apply federal backup withholding to a reportable payment also withholds 7 percent for California, except on interest, dividends, releases of loan funds and real estate, and that withholding replaces every other California withholding on the same payment. Separately, R&TC 18662 requires 7 percent withholding on California-source payments to nonresident individuals and to entities not qualified with the Secretary of State, once payments to the payee pass $1,500 in the year, with Form 590 for exempt payees and Forms 588 and 589 for waivers and reductions. Both are reported on Form 592 by period and on Form 592-B to the payee by January 31.
California: trigger, forms, due dates, exemptions and sources →
Colorado
Backup withholding: required Nonresident non-wage: not required (inferred)
Colorado’s rule sits inside the wage withholding statute and is easy to miss. C.R.S. 39-22-604(18) requires any person paying a natural person for services reported on a Form 1099 to withhold Colorado income tax at the individual rate when the payee fails to provide a validated taxpayer identification number or provides an ITIN. A validated number is an SSN or ITIN the payer has confirmed through the IRS TIN matching program or an equally effective third-party check approved by the Department. Service payments that are not reported on any information return carry the same duty unless the payer holds a validated number. The payer is treated as an employer for deposits and returns, and production companies paying personal service corporations have a parallel rule in subsection (21).
Colorado: trigger, forms, due dates, exemptions and sources →
Connecticut
Backup withholding: not required (inferred) Nonresident non-wage: required
Connecticut withholds on athletes and entertainers only. Under Conn. Gen. Stat. 12-705 and 12-707, explained in Policy Statement 2018(1), a Connecticut venue or lessee of a venue that pays an athlete, entertainer or performing entity, including a loan-out company, for a performance in the state withholds 6.99 percent of the gross payment when it exceeds $1,000, unless DRS approves a reduced rate (Form CT-588) or a waiver (Form CT-590). Payments routed through agents or promoters are covered. Statements go on Form CT-592, with Forms CT-945 ATHEN and CT-1096 ATHEN due January 31. The DRS nonpayroll withholding list has no backup withholding category.
Connecticut: trigger, forms, due dates, exemptions and sources →
Georgia
Backup withholding: required Nonresident non-wage: required
Georgia has no general nonresident contractor withholding but two targeted rules. O.C.G.A. 48-7-101(i) requires 6 percent withholding on 1099-NEC compensation for labor services physically performed in Georgia when the individual gives no TIN, an incorrect TIN judged by the IRC 3406 standard, or an ITIN. It applies to residents and nonresidents alike and is reported with the payer’s regular withholding on Forms G-7 and G-1003. Production companies claiming the Georgia film tax credit must also withhold at the current individual rate on every payment to a loan-out company for services performed in Georgia, reported on Form G-7 Film and Form G2-FP.
Georgia: trigger, forms, due dates, exemptions and sources →
Iowa
Backup withholding: not required Nonresident non-wage: required
Iowa withholds on nonresidents, not on TIN problems. Iowa Code 422.16(2)(c) ties non-wage withholding to IRC 3402(o), (p), (s) and 3405 payments to residents and never mentions 3406, so federal backup withholding has no Iowa counterpart. Iowa Code 422.16(2)(b) and rule 701-307.4 require withholding on Iowa-source income paid to nonresidents that is not wages: fees for personal services performed in Iowa, payments to nonresident entertainers (but not entertainment corporations), rents, royalties and income from temporary businesses such as construction contracts. The rule says 5 percent of the payment; the Department’s Form 44-017, which a nonresident files to be released from withholding, computes the alternative estimated payment at 3.8 percent. Both figures are shown with their sources.
Iowa: trigger, forms, due dates, exemptions and sources →
Kansas
Backup withholding: not required Nonresident non-wage: required
Kansas defines non-wage withholding as a closed list in K.S.A. 79-3295(h), and backup withholding is not on it. The list does include management and consulting fees, and K.S.A. 79-32,100a(d) requires a Kansas for-profit entity that pays such fees to a nonresident for services physically performed in Kansas to withhold 5 percent. Payers that are individuals, governments or nonprofits are outside the rule, and there is no entertainer-specific regime. The withholding runs through the payer’s regular Kansas withholding account (KW-5 deposits, KW-3 annual return) with the 1099 attached.
Kansas: trigger, forms, due dates, exemptions and sources →
Maine
Backup withholding: required Nonresident non-wage: not required
Maine rides on the federal trigger. Under 36 M.R.S. 5255-B, a person who must withhold federal income tax from a non-wage payment, including backup withholding under IRC 3406, withholds a flat 5 percent for Maine, and Rule 803 lists reportable payments subject to federal backup withholding first among the covered items. The same flat-rate rule covers IRC 1441 and 1442 withholding on foreign payees. Maine has no separate rule for nonresident contractors or entertainers. Withholding is reported on Form 941ME quarterly and reconciled on Form W-3ME by February 28.
Maine: trigger, forms, due dates, exemptions and sources →
Massachusetts
Backup withholding: not required Nonresident non-wage: required
Massachusetts withholds on performers, not on contractors generally and not on TIN problems: 830 CMR 62B.2.1 cites IRC 3406 only for gambling winnings. The performer rule from St. 2004, c. 262, s. 21 makes the venue, lessee or promoter the withholding agent for performers and performing entities, including loan-out style entities, at the individual income tax rate, once payments by one payer pass $5,000 in the year, or $10,000 for a single event when the payer is a 501(c) organization. Waivers (Form PWH-WW) and reductions (Form PWH-RW) must be requested at least 14 business days before the performance.
Massachusetts: trigger, forms, due dates, exemptions and sources →
Minnesota
Backup withholding: required Nonresident non-wage: required
Minnesota has the highest state backup withholding rate. Minn. Stat. 290.92, subd. 26 requires withholding at the top individual rate, 9.85 percent, on reportable payments for personal services when the payee gives no SSN or TIN, is subject to federal 3406 withholding, or the Commissioner notifies the payer that the number is wrong. It does not reach interest, dividends or other reportable payments. Separately, Minn. Stat. 290.9201 imposes a 2 percent withholding tax on compensation paid to nonresident entertainers and entertainment entities for performances in Minnesota, with a $600 floor ($2,000 for public speakers), remitted on Form ETD and reconciled on Form ETA.
Minnesota: trigger, forms, due dates, exemptions and sources →
Missouri
Backup withholding: not required (inferred) Nonresident non-wage: required
Missouri’s only non-wage withholding is on nonresident entertainers. RSMo 143.183 requires any person, venue or entity paying a nonresident entertainer for a live performance in Missouri to withhold 2 percent of the total compensation once it exceeds $300, as a prepayment of the entertainer’s tax; crews travelling with the entertainer and nonresident promoters are included. The payer files Form MO-1ENT quarterly and gives the entertainer Form MO-2ENT. 501(c)(3) venues that receive nothing but the performance are exempt. No backup withholding provision was found in Chapter 143.
Missouri: trigger, forms, due dates, exemptions and sources →
Montana
Backup withholding: not required (inferred) Nonresident non-wage: required
Montana’s regime is about minerals, not contractors. MCA 15-30-2536 through 15-30-2547 require remitters to withhold 6 percent of net mineral royalties (oil, gas, coal, metals) paid to any royalty owner, resident or nonresident, individual or entity, with publicly traded partnerships and tax-exempt organizations exempt on notification. Payments under $166 a period or $2,000 a year may be skipped. Withholding is paid on Form RW-1 quarterly and reconciled on Form RW-3 with Forms 1099-MISC or 1042-S by January 31. No backup withholding or nonresident contractor rule was found.
Montana: trigger, forms, due dates, exemptions and sources →
Nebraska
Backup withholding: not required Nonresident non-wage: required
Nebraska excludes federal backup withholding payments from its definition of withholdable payments (Neb. Rev. Stat. 77-2753(6)) and has two nonresident rules instead. Under 77-2753(2), a payer withholds on personal services performed substantially in Nebraska by a nonresident individual, or by an entity 80 percent owned by the individuals performing the services, at 4 percent of net payments under $28,000 and 6 percent at $28,000 or more, once payments pass $600 (payor with a Nebraska office) or $5,000. Under 77-2753(3), any contractor paying another contractor for construction services in Nebraska withholds 5 percent if the payee is not in the Nebraska Contractor Database. Forms W-4NA and W-4NB handle the computation and the exemption.
Nebraska: trigger, forms, due dates, exemptions and sources →
New Jersey
Backup withholding: not required (inferred) Nonresident non-wage: required
New Jersey’s rule turns on registration rather than residency. N.J.S.A. 54A:7-1.2 requires a person doing business in New Jersey that pays an unincorporated contractor, resident or nonresident, for construction services in the state to obtain the contractor’s New Jersey Business Registration Certificate or withhold 7 percent of the payment. Non-employer payers remit on Form NJ-550 monthly and reconcile on Schedule NJ-W-3-UNC; the 1099-MISC shows the withholding. Work for government agencies and for homeowners on their own residence is excluded. NJ-WT lists no backup withholding rule.
New Jersey: trigger, forms, due dates, exemptions and sources →
New Mexico
Backup withholding: not required (inferred) Nonresident non-wage: required
New Mexico withholds on oil and gas proceeds. The Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act (NMSA 1978 7-3A) requires remitters to withhold 4.9 percent of net proceeds from New Mexico wells paid to nonresident remittees, unless payments to the remittee are $30 or less in the quarter or the remittee signs Form RPD-41353 agreeing to pay the tax itself. Returns are Form RPD-41284 quarterly by the 25th of the following month, with Form RPD-41285 or a 1099-MISC to each remittee. No backup withholding or nonresident contractor rule was located.
New Mexico: trigger, forms, due dates, exemptions and sources →
North Carolina
Backup withholding: required Nonresident non-wage: required
North Carolina has its own TIN trigger and a nonresident contractor rule, both at 4 percent and both with a $1,500 annual threshold. Under G.S. 105-163.1(9a) and 105-163.3, a payer withholds on non-wage compensation for services performed in North Carolina paid to a nonresident contractor engaged for a performance, entertainment, athletic event, speech or film, radio or television program; to an ITIN contractor; or to any person who fails to provide a TIN or provides one the Secretary says is invalid. Entities without a North Carolina certificate of authority are nonresident for this purpose. Payers keep residency and registration documentation instead of a certificate, and report on Form NC-1099M or a 1099-NEC/MISC with Form NC-3 by January 31.
North Carolina: trigger, forms, due dates, exemptions and sources →
North Dakota
Backup withholding: not required (inferred) Nonresident non-wage: required
North Dakota withholds on oil and gas royalties paid to nonresidents. N.D.C.C. 57-38-59.4 requires a remitter to withhold 1.75 percent of gross North Dakota royalties paid to nonresident individuals and entities not domiciled in the state (the top individual rate of 2.50 percent minus 0.75 percent), with quarterly payments under $600 exempt and small producers excused. The Tax Commissioner’s web page carries the current rate; the 2017 guideline PDF still shows 2.15 percent. Returns are Form RWT-941 quarterly and Form RWT-1096 annually. No backup withholding or nonresident contractor rule was found.
North Dakota: trigger, forms, due dates, exemptions and sources →
Oklahoma
Backup withholding: not required (inferred) Nonresident non-wage: required
Oklahoma withholds on oil and gas royalties paid to nonresidents. 68 O.S. 2385.26 and OAC 710:50-3-53 require a remitter distributing Oklahoma royalty revenue to a nonresident royalty owner to withhold at the highest marginal individual income tax rate; the Tax Commission’s Form 500-B instructions show 4.75 percent for the related pass-through withholding, so confirm the current year’s rate. Publicly traded partnerships are exempt. Returns are Form WTR10002 quarterly, with an annual statement to each owner. No backup withholding provision was found on the Tax Commission’s withholding pages.
Oklahoma: trigger, forms, due dates, exemptions and sources →
Pennsylvania
Backup withholding: not required (inferred) Nonresident non-wage: required
Pennsylvania’s Act 43 of 2017 (72 P.S. 7324.4) requires withholding at the 3.07 percent personal income tax rate on Pennsylvania-source non-employee compensation and business income reported on a 1099-MISC or 1099-NEC to a nonresident individual or a disregarded entity with a nonresident member, and on lease payments for Pennsylvania real estate to a nonresident individual, estate or trust lessor. It is mandatory once payments to the payee exceed $5,000 in the year and optional below that. Form REV-1832 is the exemption certificate; the payer registers a 1099-MISC/NEC withholding account on myPATH and files REV-1667 with the 1099s by January 31. There is no Pennsylvania backup withholding.
Pennsylvania: trigger, forms, due dates, exemptions and sources →
Rhode Island
Backup withholding: not required (inferred) Nonresident non-wage: required
Rhode Island’s rule is a tax security deposit rather than income withholding. R.I. Gen. Laws 44-1-6 requires any person doing business with a nonresident construction contractor to hold back 3 percent of the contract price until 30 days after the contract is complete, releasing it on a Certificate of No Tax Due or remitting it to the Division of Taxation. It secures the contractor’s sales, use and withholding taxes, produces no payee statement, and is listed here because AP teams meet it in the same place. Rhode Island has no backup withholding or entertainer rule.
Rhode Island: trigger, forms, due dates, exemptions and sources →
South Carolina
Backup withholding: required Nonresident non-wage: required
South Carolina has three rules in Chapter 8 of Title 12. S.C. Code 12-8-595 requires a withholding agent to withhold at the maximum individual income tax rate on Form 1099 compensation paid to an individual who gives no TIN or SSN, an incorrect one, or an ITIN; the rate was a flat 7 percent until 2024 Act 215 tied it to the top individual rate. S.C. Code 12-8-550 requires 2 percent withholding on each payment to a nonresident doing business or performing personal services of a temporary nature in the state when the South Carolina portion of the contract exceeds $10,000, unless the nonresident gives Form I-312. S.C. Code 12-8-540 requires withholding on rent and royalty payments of $1,200 or more a year to nonresidents at the maximum individual rate (5 percent for corporations).
South Carolina: trigger, forms, due dates, exemptions and sources →
Utah
Backup withholding: not required (inferred) Nonresident non-wage: required
Utah’s regime covers mineral production payments to everyone. Utah Code 59-6-102 requires producers to withhold at the Utah individual income tax rate on payments for interests in mines, wells and other mineral production in Utah to any recipient, resident or not, with the amount a refundable credit on the recipient’s return. Producers file Form TC-941E quarterly and give each recipient Form TC-675R. No backup withholding or nonresident contractor rule was found in Utah Code 59-10-402.
Utah: trigger, forms, due dates, exemptions and sources →
Vermont
Backup withholding: required Nonresident non-wage: not required
Vermont’s duty is statutory and its rate is administrative. 32 V.S.A. 5841(a) requires every person who must withhold federal income tax from a payment that is also subject to Vermont tax to withhold the amount the Commissioner prescribes, and the same subsection exempts banks from withholding on payments subject to federal backup withholding, which confirms that the rule reaches everyone else. The Department’s GB-1210 says Vermont withholding on non-periodic payments can be estimated at 30 percent of the federal withholding; at the 24 percent federal backup rate that is 7.2 percent of the payment. Vermont has no separate nonresident contractor rule. Withholding is reported on Form WHT-436 quarterly and Form WHT-434 by January 31.
Vermont: trigger, forms, due dates, exemptions and sources →
Wisconsin
Backup withholding: not required (inferred) Nonresident non-wage: required
Wisconsin withholds on nonresident entertainers. Under Wis. Stat. 71.80(15), as explained in Publication 508, the person paying a nonresident entertainer or a foreign entertainment entity for a performance in Wisconsin withholds 6 percent of the total contract price when it exceeds $7,000, unless the entertainer has posted a surety bond or cash deposit or holds a Department waiver. The withholding is remitted with Form WT-11 within 5 days after the performance; Form WT-12 asks for a lower rate. Publication W-166 contains no backup withholding provision.
Wisconsin: trigger, forms, due dates, exemptions and sources →
Building it into the W-9 process
- Capture the work state and the payee’s state at onboarding. Every rule in Table B turns on where the services were performed, where the property sits, or where the venue is, and most of Table A turns on the state where services were performed. A vendor record that holds only a remittance address cannot answer either question.
- Match the TIN before the first payment, and keep the result. In Colorado the match record is the statute’s definition of a validated number; in Georgia, Minnesota, North Carolina and South Carolina it is the evidence that the trigger did not exist. A mismatch, or a refusal to give a TIN, now has a state cost as well as the 24 percent federal one.
- Flag ITINs. Colorado, Georgia, North Carolina and South Carolina withhold on service payments to ITIN holders even when the number matches. The IRS ranges are on the ITIN page.
- Collect the state certificate with the W-9. California Form 590, Pennsylvania REV-1832, South Carolina I-312, Nebraska W-4NA or W-4NB, the New Jersey Business Registration Certificate, the Nebraska Contractor Database check. Each is the document that turns withholding off, and each is easier to get before the first invoice than after.
- Register before you withhold. Most states route the withholding through an employer-style account (Form NC-BR, Georgia Tax Center, myPATH, Form 20 in Nebraska, MassTaxConnect) and several fine a payer that withholds without one.
- Put the state deposits on the calendar. California’s four periods, Wisconsin’s 5-day WT-11, New Jersey’s monthly NJ-550, Minnesota’s month-after-performance ETD and Connecticut’s weekly remitter class do not line up with Form 945. The compliance calendar covers the federal dates.
Questions people ask
If I already apply 24 percent federal backup withholding, do I withhold the state amount on top?
In California, Maine and Vermont, yes: the state withholding is triggered by the federal one and is taken in addition to it (California 7 percent, Maine 5 percent, Vermont as prescribed). In Minnesota the state rule is also satisfied by a federal 3406 trigger, at 9.85 percent on personal service payments. In Georgia, North Carolina, South Carolina and Colorado the state trigger is independent, so the state withholding can apply when the federal one does not (an ITIN, for example) and the federal one can apply when the state one does not (interest or dividends).
Does a matched TIN stop nonresident withholding?
No. Nonresident withholding is about where the payee lives and where the work was done. A nonresident contractor with a perfect W-9 is still subject to California’s 7 percent above $1,500 and Pennsylvania’s 3.07 percent above $5,000. What stops it is the state’s exemption certificate, waiver or registration, or the payee being a resident.
What does “inferred” mean in the tables?
That the survey read the state’s wage withholding statute or its employer withholding guide and found no provision, and nothing else. A rule in another chapter of the code, such as a special entertainer tax outside the withholding article, could be missed. States whose statute defines withholding by a closed list (Kansas, Iowa, Nebraska, Illinois, New York, Michigan) are the lowest risk and are shown as confirmed.
Where does the withheld state tax go on the 1099?
Boxes 5 to 7 of the 1099-NEC and boxes 16 to 18 of the 1099-MISC carry the state tax withheld, the state and payer state number, and the state income. Several states also want their own statement (California 592-B, North Carolina NC-1099M, Connecticut CT-592, Missouri MO-2ENT, New Mexico RPD-41285, Utah TC-675R), and a state that received withholding almost always wants the 1099 filed directly rather than through CF/SF; the state filing map covers that side.
Does Washington, Texas or Florida have any of this?
No. Nine states have no individual income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming) and so no withholding on non-wage payments to individuals. Florida and Tennessee still take 1099-K copies from payment settlement entities, which is a filing rule, not withholding.
Sources and method
Every row comes from a primary source saved on November 1, 2026: the state statute from the legislature’s site, the regulation, or the revenue department’s own publication or page. Where the official site blocked automated download, the statute text was read from a public mirror (California R&TC 18664, Georgia 48-7-101, Iowa rule 701-307.4, Oklahoma OAC 710:50-3-53) or the page was captured as extracted text (California FTB, Maine Rule 803, Massachusetts, Michigan and New York statutes, Rhode Island); the state pages say which. New Hampshire and Tennessee have no saved source because their sites blocked automated retrieval, and the Florida page returned no text; the rows say so. Nothing on this page relies on the Internal Revenue Manual. Rates tied to a state’s top individual rate (Colorado, Massachusetts, Oklahoma, South Carolina, Utah) change when the rate does; confirm the current year’s figure before withholding.