§302-17.41. Applicable State marginal tax rate and effect on the RITA and an employee's State tax return(s).
41 C.F.R. § 302-17.41
If two or more States that are involved in an employee's relocation impose an income tax on relocation benefits, then the employee's relocation benefits may be taxed by both States. Most commonly, the old and new duty stations are in the two States involved. The following table lays out the possibilities:
Notes, amendments, and revision history
Authority
Authority: 5 U.S.C. 5724b; 5 U.S.C. 5738; E.O. 11609, 36 FR 13747, 3 CFR, 1971-1975 Comp., p. 586.
Source
Source: FTR Case 2025-05, 90 FR 56893, Dec. 8, 2025, unless otherwise noted.