It’s the year 2042, and you’ve taken a job on the moon. The commute’s a breeze (no traffic lights in low gravity), your neighbor is a robot named Kevin, and—somehow—the Wi-Fi is better than it ever was on Earth. But just when you're settling into your space routine, Tax Day shows up, and your screen hits you with the dreaded question: “Please select your state of residence.”
As Mars missions inch closer to reality and space travel becomes less science fiction, it’s only a matter of time before tax pros face their most out-there challenge: figuring out where tax nexus ends… and space begins.
Astronauts employed by NASA are still considered federal employees—and yes, they file returns like the rest of us. But what about a SpaceX technician based on the moon? Or someone mining crypto in a Mars colony? If you're not physically in any state, does that mean no state income tax? Or will every state want a slice of that sweet, sweet space income?
California might.
Residency rules can get weird even on Earth. Say you move to Nevada but leave a couple things behind in your old L.A. apartment—like your surfboard and a houseplant that’s barely hanging on. That could still be enough for California to stake a claim. Now try explaining that from orbit: “I haven’t set foot in California since the rocket launch, I promise.”
And what about use tax? If you order snacks from Earth to your lunar pod, is that considered a taxable purchase? Asking for a friend who just wants peanut butter pretzels.
There’s also the matter of carbon credits on rocket fuel. And lunar property taxes? Good news: the moon still doesn’t have zoning laws. Yet.
Until the tax code catches up with space life, we recommend staying grounded—literally. For now, you’re still subject to good old earthly rules, even if you’re filing from low Earth orbit. But the day may come when CPAs have to ask: “Did you spend more than 183 days in the thermosphere?”
And when that day comes… we’ll be ready. With solar-powered calculators.
