What Does Total State Mean on a W-2?

Each year, employers issue a Form W-2, Wage and Tax Statement, to their employees. This document summarizes the total compensation you received and the taxes withheld from your paychecks during the year. It reports your gross earnings, federal taxes, Social Security and Medicare taxes, and any contributions to retirement plans. This form is used for preparing your annual income tax returns.

Locating and Understanding State Information on Your W-2

The lower portion of your W-2 is for state and local tax information, separate from the federal data at the top. This section contains the details for filing your state income tax return. You will find boxes numbered 15 through 17 that report your state-related earnings and tax withholdings for the year.

Box 15 displays your employer’s state identification number and the state to which your taxes were reported. This number is unique to your employer for that specific state. When you file your state return, this information identifies the employer who remitted the withholdings on your behalf.

Box 16 shows your “State wages, tips, etc.” This figure represents the portion of your total income that is subject to that state’s income tax laws. This amount can sometimes differ from the federal wages reported in Box 1 of the W-2 for various reasons.

Box 17, labeled “State income tax,” reports the total amount of money withheld from your paychecks for state income taxes throughout the year. This is the cumulative amount you have already paid toward your annual state tax obligation, which is used to determine if you owe more or are due a refund.

Common Scenarios Affecting State Tax Reporting

One common scenario is finding multiple states listed. If you worked for the same employer but in different states during the tax year, your W-2 will have a distinct set of entries for Boxes 15, 16, and 17 for each state where you earned wages. This ensures that income is reported to the correct jurisdiction.

You might also notice that the amount in Box 16 (State wages) does not match the federal wages reported in Box 1. While most states with an income tax follow federal rules for pre-tax deductions like 401(k) contributions, some do not conform to the same rules for certain retirement plans or other benefits. This can cause the state wages reported in Box 16 to be higher than the federal wages in Box 1.

In some cases, the state-related boxes on your W-2 may be empty. This occurs if you live and work in one of the states that do not have a personal income tax. In these locations, your employer has no state income tax to withhold, so Boxes 16 and 17 will be blank. States without a personal income tax include:

• Alaska
• Florida
• Nevada
• New Hampshire
• South Dakota
• Tennessee
• Texas
• Washington
• Wyoming

Using W-2 State Information for Your Tax Return

The information presented in the state section of your W-2 is meant to be transferred directly to your state income tax return. When you or your tax preparer complete your state filing, the employer’s state ID from Box 15, the state wages from Box 16, and the state tax withheld from Box 17 are entered into the corresponding fields on the state tax form. This data forms the basis for calculating your state tax liability.

If your W-2 includes information for multiple states, it generally means you will need to file a separate tax return for each of those states. Each return will use the specific wage and withholding data reported for that jurisdiction. This situation is common for individuals who moved during the year or who travel extensively for work and earn income across state lines.

Modern tax preparation software simplifies this process by providing specific prompts for each state’s W-2 information. Should you suspect an error in these boxes, such as an incorrect state or amount, contact your employer’s payroll or human resources department to request a corrected Form W-2c.