When people ask whether state or federal taxes come first, the answer depends on what part of the process they mean. For filing, the federal return comes first, because state returns copy numbers directly from it. For paycheck withholding, neither comes first — both leave your pay at the same moment. The rest of the picture follows from those two facts.
Why the Federal Return Has to Be Done First
More than 30 states and the District of Columbia use your federal adjusted gross income as the starting point for calculating what you owe the state. A handful of others start from federal taxable income, the number after deductions. Either way, the state form literally asks you to copy a line from your federal return, so you cannot fill it out until the federal one is finished. This is arithmetic, not a rule someone wrote down.
E-filing enforces the same order mechanically. When you submit through tax software or a preparer, the state return travels alongside or after the federal one. The IRS processes and accepts the federal return first, then forwards the state portion to the appropriate state agency. Until the federal return clears, the state return sits in a queue. If the IRS rejects your federal filing, the state return stalls with it.
If You Live in a No-Income-Tax State
The question doesn’t apply to everyone. Residents of Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming have no state income tax on wages and salary. You file a federal return and you’re done. Washington taxes certain capital gains above $270,000, but that’s a narrow exception. New Hampshire joined the group in 2025 when it repealed its tax on interest and dividends. For the other 41 states plus D.C., the federal-first order applies.
How Federal Choices Ripple Into Your State Return
Because so many states piggyback on federal definitions, the choices you make federally show up on the state side automatically. Contribute more to a traditional IRA and lower your federal AGI, and your state taxable income usually drops with it. Claim a larger federal standard deduction, and states that start from federal taxable income reflect that change without you doing anything.
States do layer on their own adjustments. Some add back income the federal government excludes; others offer credits and deductions with no federal equivalent. The federal return still sits underneath everything, which is another reason to lock it down before touching the state form.
Amended Returns Follow the Same Order
If you find an error and file Form 1040-X to amend your federal return, that change will almost certainly affect your state return too. The IRS itself notes that a federal change may alter state tax liability and tells taxpayers to contact their state agency.1Internal Revenue Service. Topic No. 308, Amended Returns Most states then require an amended state return within a set window, often 90 days to six months after the federal amendment is processed.
The order mirrors the original filing: amend the federal return first, wait for the IRS to accept the change, then amend the state return using the corrected federal figures. The IRS shares amended-return data with states, so skipping the state amendment when it’s required tends to surface as a notice later.2Internal Revenue Service. State Information Sharing
Multi-State Workers: File in a Specific Order
If you live in one state and work in another, the filing order gets one extra step. Roughly 30 states have reciprocity agreements with at least one neighbor. Under a reciprocity agreement, you owe income tax only in your home state even if your office sits across the border. You file a withholding exemption form with your employer so they stop withholding for the work state, and you skip the nonresident return.
Without reciprocity, you typically file a nonresident return in the state where you work and a resident return in the state where you live. Your home state usually gives you a credit for taxes paid to the work state, so the same income isn’t taxed twice. The order matters here: federal first, then the nonresident state return, then the resident state return, because the resident return needs to know how much credit to claim for taxes paid elsewhere.
Paycheck Withholding: Federal and State Come Out Together
For anyone earning a paycheck, neither tax comes first in terms of payment. Your employer withholds federal income tax, Social Security, and Medicare from each paycheck and simultaneously withholds state income tax in states that have one. Both amounts leave the same pay run and get deposited with the respective agencies on their own schedules.3Internal Revenue Service. Tax Withholding
On the federal side, employers deposit withheld taxes with the IRS either monthly or semi-weekly depending on their total tax liability.4Internal Revenue Service. Depositing and Reporting Employment Taxes State deposit schedules often mirror the federal timing. From your side, both deductions just appear as separate lines on your pay stub.
Estimated Payments if You’re Self-Employed
Self-employed workers, freelancers, and anyone with significant income not subject to withholding hit the question from a different angle. The IRS requires quarterly estimated payments if you expect to owe $1,000 or more in federal tax for the year after withholding and credits.5Internal Revenue Service. Estimated Taxes Most states with an income tax have a similar rule, though the trigger amount varies.
For the 2026 tax year, the federal quarterly deadlines are:
- First quarter: April 15, 2026
- Second quarter: June 15, 2026
- Third quarter: September 15, 2026
- Fourth quarter: January 15, 2027
State estimated payments usually follow the same calendar, though some states set different dates. You typically calculate and send federal and state estimates at the same time, just to separate agencies. Missing a quarterly payment on either side triggers an underpayment penalty when you file, even if the annual return shows a refund.
Deadlines and Extensions
The federal filing deadline for tax year 2025 returns is April 15, 2026.6Internal Revenue Service. IRS Opens 2026 Filing Season Most states use the same date, and when April 15 falls on a weekend or holiday, both federal and state deadlines shift to the next business day.
Need more time? Form 4868 gets you an automatic six-month federal extension. Some states honor the federal extension automatically; others require their own extension form. Check your state’s rules before assuming you’re covered. The extension moves the filing date, not the payment date. If you owe and don’t pay by April 15, interest and penalties start running on both sides.
Refunds: Federal Usually Arrives First
If you’re getting money back, the federal refund typically shows up first. The IRS generally processes e-filed returns within 21 days, and direct deposit speeds things up further.7Internal Revenue Service. Processing Status for Tax Forms State refund timelines vary — a week or two in some states, six weeks or longer in others. Since the state return can’t start processing until the federal one is accepted, the state refund trails the federal one by at least a few days in almost every case. You can track federal refunds at irs.gov and state refunds through the state tax agency’s website.8USAGov. Check Your Federal or State Tax Refund Status