State tax withheld appears in boxes 16 through 20 on your W-2 form

Your W-2 shows state tax withheld in the boxes labeled for your specific state. Box 16 holds the state income tax your employer took from your paychecks. Box 17 shows the state where that income was earned. Boxes 18, 19, and 20 may contain local tax withheld, depending on whether your employer deducted city or county taxes.

The exact box number depends on which state you worked in. If you worked in only one state, all your state withholding information sits in one row. If you worked in multiple states during the year, your W-2 will have separate rows for each state, each with its own box 16 amount.

You receive a copy of your W-2 by January 31 each year. Your employer sends it to you by mail or email, and the IRS also receives a copy. If you do not receive your W-2 by early February, contact your employer's payroll department directly.

Key Takeaways

  • Box 16 on your W-2 shows the total state income tax your employer withheld from your paychecks during the year.
  • Box 17 tells you which state that withholding was for, which matters if you worked in more than one state.
  • Boxes 18, 19, and 20 may show local or city taxes withheld, depending on where you lived and worked.
  • Your W-2 arrives by January 31, and you need the state withholding amount to file your state tax return.

How to read your W-2 if you worked in multiple states

When you worked in more than one state during the year, your W-2 contains multiple state sections. Each section shows the state code in box 17, the income earned in that state in box 15, and the tax withheld for that state in box 16. You report each state's withholding separately on your state tax returns.

If you moved states mid-year, you may owe taxes to both your old state and your new state. The withholding amounts on your W-2 tell you how much each state already took. When you file, you report the withholding to the state where you earned the income, not necessarily where you live now.

Where state withholding goes on your tax return

When you file your state income tax return, you report the amount from box 16 as tax already paid. Most state tax forms ask for this number early in the return, usually on a line labeled "state tax withheld" or "prior year withholding." The state uses this amount to calculate whether you owe more tax or will receive a refund.

If you file your federal return first, you may see your federal refund before your state processes your return. State processing times vary, but most states issue refunds within four to eight weeks of receiving your return. Some states offer faster refunds if you file electronically.

What to do if box 16 looks wrong

If the amount in box 16 seems too high or too low, check your pay stubs from throughout the year. Add up the state tax withheld on each stub and compare it to box 16. The W-2 amount should match your total.

If the numbers do not match, contact your employer's payroll department. They may have made an error, or they may have withheld extra money at your request. Ask them to explain the difference. If they made a mistake, they must issue a corrected W-2 (called a W-2c) before you file your state return.

Do not file your state return until the W-2 amount is correct. Filing with wrong withholding information can delay your refund or cause the state to send you a bill later.

Local tax withholding in boxes 18, 19, and 20

Some cities and counties charge local income tax on top of state tax. If you worked in one of these places, your W-2 shows local tax withheld in boxes 18, 19, and 20. Box 18 holds the local tax amount, box 19 shows the local tax code (usually a city or county name), and box 20 may show additional local information.

You report local tax withholding on your local tax return, not your state return. Many cities and counties have their own tax forms that you file separately. Check your city or county government website to see whether you owe local tax and where to file.

How to find your W-2 if you lost it

If you did not receive your W-2 by early February or you lost your copy, ask your employer for another one. Payroll can print a duplicate when ready. If your employer no longer exists or will not respond, you can request a transcript from the IRS that shows your W-2 information.

To get an IRS transcript, visit irs.gov or call 1-800-908-9946. You can request a "Wage and Income Transcript" which includes all W-2 information reported to the IRS. The transcript arrives by mail within two weeks, or you can view it online the same day if you create an IRS account.

Frequently Asked Questions

Can I claim state tax withheld if I did not file a state return?

No. State tax withheld is only credited to your account when you file a state return. If you did not owe state tax, you do not need to file, but you also cannot claim the withholding. Some states allow you to file a return just to claim a refund of withheld taxes even if you had no income.

What if I worked in two states but only got one W-2?

Your employer should have issued separate W-2 sections for each state. If they did not, contact payroll and ask for a corrected W-2 that breaks down income and withholding by state. You cannot file accurate state returns without this information.

Does state tax withheld reduce my federal refund?

No. State and federal withholding are separate. Your federal refund depends only on federal tax withheld and your federal tax liability. State withholding affects only your state refund or state tax bill.

What if my employer withheld state tax for the wrong state?

Ask payroll to issue a corrected W-2 when ready. If they cannot fix it before the filing important date, file your return based on where you actually worked and lived. Keep records of the error and your request for correction in case the state questions your return.