Multi-State Taxes for Touring Artists: What You Need to Know Before Hitting the Road
Every City Comes With a Tax Code
For entertainers and creatives, touring is often a sign of growth—new audiences, new opportunities, and new income. But what many artists don’t realize is that every city, every state, and every stop on your itinerary may trigger tax obligations you weren’t expecting.
From musicians and comedians to dancers, filmmakers, and influencers on press tours, the moment you earn income in another state, you may owe taxes there. And the consequences of ignoring these laws? Penalties, audits, double taxation—and a lot of unnecessary stress.
At Artists Business Management Group Inc. (ABMG Inc.), we’ve spent over 30 years helping touring creatives navigate the maze of multi-state taxation. This blog will show you what triggers state tax obligations, how to stay compliant, and how ABMG helps clients protect their money while growing their careers.
1. Understanding State “Source Income” Rules
Each U.S. state has its own rules about when a non-resident owes tax. The general principle is this:
If you earn income within a state—even temporarily—you may owe tax there.
This is known as source income. For entertainers, that includes:
- Ticket sales from live performances
- Paid appearances (TV, podcasts, press events)
- Merchandise sold at venues or events
- Filming or recording within state lines
- Digital content created while present in that state
- Licensing income tied to local distribution
🎭 Example: If you perform 3 shows in New York on a national tour, even if you’re a California resident, you may owe non-resident state income tax to New York.
2. Which States Actively Tax Entertainers?
Some states are notorious for pursuing tax from non-resident performers. These include:
- California
- New York
- Illinois
- Georgia
- Tennessee
- Louisiana
- Massachusetts
Each state has thresholds for filing—some as low as $1 of income. Even if you’re only there for a day, you may need to file a Form IT-203 (NY), Form 540NR (CA), or another state-specific return.
💡 ABMG Tip: States like Tennessee and Georgia aggressively track artist performances through venue reporting and ticketing platforms. Touring without tax planning can lead to back taxes and penalties.
3. Residency and Domicile: Where Do You Really Live?
If you’re constantly on the move—living part-time in LA, filming in Atlanta, and summering in Austin—you may confuse your state residency status without realizing it.
Residency audits are common for:
- Touring artists with homes in multiple states
- High-income creatives claiming residency in low-tax states
- Individuals who moved but didn’t update tax records properly
Residency Audit Factors Include:
- Where your driver’s license and voter registration are issued
- Where your family or dependents reside
- Where your main job contracts are based
- Where your “stuff” is (cars, pets, belongings)
- How much time you spend in each location (the 183-day rule)
📍 ABMG Solution: We help clients document and defend their primary residency while managing tax filings in all states where income is earned—ensuring compliance and preventing double taxation.
4. The Jock Tax: Not Just for Athletes
Many entertainers don’t realize they’re subject to what’s commonly called the “jock tax”—a state income tax levied on traveling professionals (originally aimed at athletes, now applied to performers).
You May Owe Taxes If You:
- Perform at a concert or show
- Film a commercial or music video
- Attend a paid press junket or signing
- Earn appearance or sponsorship fees tied to that location
💡 Real-World Insight: A traveling DJ booked in 15 states over 3 months received surprise notices from Illinois and Georgia after venues reported 1099 income. ABMG resolved all filings, negotiated down penalties, and restructured future payments to minimize exposure.
5. Sales Tax on Merchandise and Digital Goods
Touring with merchandise? Selling art prints or downloads while on the road? You may need to register for sales tax permits in each state where you make sales.
Sales Tax Applies to:
- T-shirts, posters, vinyl, and physical merch
- Digital goods (ebooks, downloads, paywalled content)
- Pop-up shop income or gallery sales at events
Each state defines nexus differently, and some consider a single day of selling as enough to trigger obligations.
🧾 ABMG Support Includes:
- Registering you for permits in nexus states
- Calculating and filing sales tax returns
- Advising on when and where you need to collect sales tax
- Managing your e-commerce tax automation (e.g., Shopify, Square, WooCommerce)
6. How ABMG Streamlines Multi-State Filings for Creatives
Touring artists shouldn’t have to become tax experts. That’s why ABMG offers end-to-end business management for multi-state entertainers.
Our Services Include:
- Non-resident tax return filing in all required states
- Residency strategy and documentation
- Royalty and licensing income allocation by geography
- Sales tax management for merch
- Entity-level planning to route income through S-Corps or LLCs
- Advance tax forecasting so there are no surprises at year-end
🎯 Case Study: A touring musician booked 22 states in one year. ABMG created a tax projection model, tracked each state’s filing threshold, registered him in 6 necessary states, and avoided double taxation by allocating residency properly. He saved over $18,000 in taxes and gained back countless hours of stress.
7. Mistakes That Can Lead to Big Penalties
Many creatives unintentionally make tax mistakes that cost them dearly. Common errors include:
- Ignoring 1099s issued by out-of-state venues
- Failing to file a return in a state where you earned income
- Using the wrong business structure (sole proprietorship vs. S-Corp)
- Mixing personal and tour expenses
- Not tracking days spent in each state (residency risk)
🚨 ABMG Fix: We do a multi-state risk audit and implement a compliance system to keep you protected and in control.
Why Touring Artists Trust ABMG Inc.
We’re not just a tax firm. ABMG Inc. is a full-service financial partner for entertainers who earn income across borders, states, and time zones.
With offices in Woodland Hills, Newbury Park, and Carlsbad, we work with:
- Touring musicians and bands
- Actors on multi-state film shoots
- Stand-up comics on national tours
- YouTubers and influencers traveling for content
- Artists hosting pop-up exhibits and selling merch
“I didn’t even know I owed taxes in those states. ABMG caught it early, handled everything, and kept my tour stress-free.”
— Independent Musician, San Diego
Ready to Hit the Road—Without the Tax Headaches?
If you’re:
- Planning a national tour
- Working remotely across states
- Making income in multiple jurisdictions
- Selling merch at events or online
…you need a business manager who understands the entertainment tax landscape.
