Most F-1 students file their federal tax return, breathe a sigh of relief, and assume they are done. Then weeks later they discover they were also supposed to file a separate state tax return — sometimes in more than one state.
This confusion happens because almost every guide about F-1 taxes focuses entirely on the IRS and federal Form 1040-NR. State taxes get a single sentence, if mentioned at all. This article fills that gap completely.
The Critical Distinction Most Students Miss
F-1 visa holders are not required to pay employment taxes — Social Security and Medicare, also known as FICA — but they are required to pay both federal and state income taxes. These taxes are withheld from your pay and you must file a tax return as part of the process.
This is the single most important fact in this entire article: the FICA exemption that F-1 students enjoy applies only to Social Security and Medicare taxes. It does not extend to state income tax. Many students hear «F-1 students are tax exempt» in conversation and incorrectly assume this covers everything, including state taxes. It does not. Most states in the US will collect state income tax in addition to federal income tax, and international students may have to file a state tax return and pay state income tax even when no federal return is due.
State tax filing is completely separate from federal filing. State rules are set independently by each state, and they do not all follow the same residency tests, exemptions, or forms that the IRS uses for federal purposes.
The 9 States Where You Owe Nothing
Nine states have no state income tax filing requirement at all. If your campus is located in one of these states, you can skip state tax filing entirely for income earned there:
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.
If your university is in any of these nine states and all your US income was earned there, you have no state tax obligation. You only need to handle your federal filing — Form 1040-NR or Form 8843.
For every other state, the rule changes completely. If you worked, studied with a paid assistantship, or received taxable scholarship income in any of the other 41 states or the District of Columbia, you very likely need to file a state tax return in addition to your federal one.
How to Know If You Owe State Taxes
The general rule across nearly all states with income tax is straightforward: if you have US-source income connected to that state — wages from a job, a taxable scholarship stipend, or income from an internship — and that state imposes an income tax, you have a state filing obligation.
This applies regardless of whether you owe federal tax. International students may have to file a state tax return and pay state income tax even when no federal return is due — for example, if your income was low enough that no federal tax was owed but the state’s threshold for filing is lower, or if your state does not honor a tax treaty exemption that eliminated your federal liability.
This last point matters enormously and catches many students by surprise: a number of states do not recognize federal tax treaty exemptions for state income tax purposes. You might owe zero federal tax because your country’s treaty exempted your wages, while still owing state tax on that same income because your state ignores the treaty entirely.
State Tax Forms by State — Quick Reference
Each state has its own specific nonresident tax form and its own deadline structure. Here is the nonresident filing form required by some of the most common states where international students attend university:
| State | Nonresident Form |
|---|---|
| New York | IT-203 |
| California | 540NR |
| Massachusetts | 1-NR/PY |
| Illinois | IL-1040 with Schedule NR |
| Maryland | Form 505 with 505NR |
| Michigan | MI-1040 with Schedule NR |
| North Carolina | D-400 with Schedule PN |
| Connecticut | CT-1040NR/PY with Schedule CT-SI |
| Arizona | 140NR |
| Georgia | Form 500 with Schedule 3 |
| New Mexico | PIT-1 with Schedule PIT-B |
| Delaware | Form 200-02 |
| District of Columbia | D-40B |
The deadline for most of these states aligns with the federal deadline of April 15 each year, though a small number of states set their own separate deadline. Always confirm the specific deadline on your state’s department of revenue website, since this can shift slightly year to year.
If your state is not listed in the table above, search «[your state name] nonresident tax form» plus the current tax year, or check directly with your university’s international student tax resources — most maintain a list specific to their state.
What If You Worked in More Than One State?
This is a situation many F-1 students do not anticipate: studying at a university in one state, then doing a summer internship or CPT placement in a different state.
If you lived and worked in more than one US state during the calendar year, you may have to file tax returns in all the states in which you lived or worked that have state income tax. Each state taxes only the income you earned while present or working there — not your full annual income — but you still need a separate nonresident return for each state involved.
For example, a student who studies in Massachusetts during the academic year and completes a summer CPT internship in New York would potentially need to file both a Massachusetts nonresident return for the income earned during the school year and a New York nonresident return for the summer internship income.
This is the scenario where state tax filing becomes genuinely complex, and it is also the scenario where tax preparation software designed for nonresident aliens earns its cost — manually tracking which income belongs to which state and avoiding double-taxation on overlapping periods is easy to get wrong by hand.
Taxable Scholarship Income and State Taxes
If you receive a stipend or scholarship that exceeds your tuition and required fees — the portion covering room, board, or general living expenses — that excess amount is taxable income at the federal level, and in most cases at the state level too.
This applies even if you have no formal job and never receive a W-2. A research stipend or teaching assistantship that pays you $20,000 per year, where $8,000 covers tuition, leaves $12,000 in taxable scholarship income — taxable both federally and in your state unless your specific state has an exemption.
Check the 1042-S form your university sends you in this situation. It documents the taxable scholarship amount that flows into both your federal and state filing obligations.
State Tax and Tax Treaties — The Trap Students Fall Into
This deserves its own emphasis because it surprises so many students every year.
A federal tax treaty exemption — for example, the $5,000 wage exemption available to Chinese students under the US-China treaty — reduces or eliminates your federal tax liability on that income. It does not automatically reduce your state tax liability on the same income.
Some states fully honor federal treaty provisions and apply the same exemption at the state level. Other states partially honor them. A meaningful number of states do not recognize federal tax treaties at all for state income tax purposes, meaning you owe state tax on income that was completely exempt at the federal level.
Before assuming your treaty benefit eliminates your full tax obligation, check your specific state’s department of revenue website or consult your tax software for the state-specific treatment of treaty-exempt income. Do not assume federal treatment automatically carries over.
How to Actually File Your State Return
Step 1 — Determine if you owe. Use the table above to identify your state’s nonresident form, or confirm you are in one of the nine no-income-tax states.
Step 2 — Complete your federal return first. Most state nonresident returns are built using figures calculated on your federal Form 1040-NR. Your state return typically references your federal adjusted gross income and applies the state’s own deductions and rates from there.
Step 3 — Use nonresident-specific tax software. Services designed for international students can generate the correct state nonresident forms in addition to the federal Form 1040-NR. Sprintax is the most widely used option among international students and specifically supports state nonresident filing as an add-on to its federal service.
Step 4 — File by your state’s deadline. Most states align with the federal April 15 deadline, but confirm your specific state’s date since exceptions exist.
Step 5 — Keep copies of every state return filed. If you ever work in multiple states across your years in the US, having a clear record of what you filed where prevents confusion in future tax years and protects you if a state later questions your filing history.
What Happens If You Skip State Filing
Unlike Form 8843, which has limited direct financial consequences for late filing in most circumstances, skipping a required state tax return when you owed money can result in penalties and interest charged by that state’s department of revenue, separate from any federal consequences.
States generally have their own enforcement mechanisms independent of the IRS. A small unpaid state tax balance from your sophomore year does not disappear — interest accrues, and some states pursue collection more aggressively than others. If you discover you missed a state filing in a previous year, file it as soon as possible rather than waiting; most states have voluntary disclosure processes that reduce penalties for self-reported late filings compared to ones discovered through enforcement.
The Bottom Line by Situation
You study and work only in one of the nine no-tax states — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, or Wyoming. You have no state filing obligation. Federal filing only.
You study and work in any other single state. You almost certainly need to file a state nonresident return alongside your federal Form 1040-NR, using the form specific to that state.
You worked or studied in more than one state during the year. You likely need separate nonresident returns for each state where you had income, each one covering only the income earned during your time in that specific state.
You have a federal tax treaty exemption. Do not assume it applies at the state level. Verify separately with your specific state’s tax authority or your tax software.
This article is for informational purposes only and does not constitute professional tax advice. State tax rules, forms, and deadlines change and vary significantly by jurisdiction. Always verify current requirements directly with your specific state’s department of revenue and consult a qualified tax professional, particularly if you worked in multiple states or are unsure how your state treats federal tax treaty exemptions.
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