Jury pay is taxable income at the federal level, but state laws vary. Some states tax it, while others exempt civic duty pay.
We've already covered that the IRS requires you to report jury duty pay as "Other Income" on your federal 1040. But what happens when you file your state taxes? Do you have to pay state income tax on that $15 a day?
If you live in a state with no state income tax (like Texas, Florida, Nevada, Washington, or South Dakota), the answer is easy: you don't pay state taxes on your jury pay.
Most states use your Federal Adjusted Gross Income (AGI) as the starting point for your state tax return. Because jury duty pay is included in your Federal AGI, it is automatically taxed by your state as well. This includes states like California, New York, and Illinois.
It is critical to distinguish between your "daily stipend" and your "mileage reimbursement." The daily stipend (e.g., $15/day) is taxable. The mileage reimbursement (e.g., $0.34 per mile) is considered a reimbursement for an incurred expense and is not taxable at the federal or state level.
If your employer paid your normal salary and required you to hand over your jury pay to them, you can deduct that remitted pay from your income so you aren't taxed on money you didn't keep. This deduction carries over to your state return as well.
In most states that collect income tax, your jury duty stipend is taxable. However, your mileage reimbursement is strictly non-taxable expense recovery.