[QUOTE=742Dash;1528040]You pay taxes in the state and town where you live. Your employer should have enough on the ball to withhold the correct amount for the correct state.

Local taxes are another matter, and you may have to pay them directly. Some towns/cities may also try to make you pay based on employment rather than residence.

I am not a tax professional. That said, it appears to me that people get in trouble in this area when they try to get creative. Trying to use a post office box in a low cost state as their "residence", for example. Be real and be consistent in what you designate as your residence, IMO.

742Dash is spot on... The employer gives the information to the payroll service. So all the Federal/State/Local taxes will be calculated correctly depending on the State you live in.. Bottom line your employer is responsible for transmitting the correct information for their employees to the payroll service.