Most states seem to have a 6 month rule to determine which of two states got the residency, but what if one has property and lives in three states?
What about folks who live overseas? What state should they pay income taxes to? What about US citizens who live in one of the territories?
States argue about that very issue all the time.They argue with other states as well as with individual taxpayers.If you listen to Rush regularly you'll recall that he mentions from time to time that he gets audited by the State of New York every year and that that audit is very complicated and intense.This is despite the fact that he hasn't lived *or* worked in the state for years.I'm sure that their backup plan was to put a lien on his Manhattan apartment which,IIRC,he only sold a year or two ago.When you have nothing that a state can seize (a business or a residence) I don't see how they can enforce a tax decision...although I could be wrong.
They pay tax in whatever state they are registered in. If they are registered in no state they pay no state income tax but few people want to go through the bother to do that. Nearly everyone comes back stateside every now and then and you generally have some sort of home base.
Of course you are not going to pay much in state income tax because you (a) don't live there and (b) usually don't get paid out of there.
What about US citizens who live in one of the territories?
That depends but usually they just pay whatever tax they pay in the territory they live in.