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The short answer
Texas has no individual income tax, so Nigerian income adds nothing at state level for a Texas resident. Maryland starts from your federal adjusted gross income and taxes residents on income from all sources, with a county-level local tax on top, and Georgia taxes residents at a flat rate reported by the Tax Foundation as 5.19% for 2026. Whether either state gives credit for Nigerian tax is not stated in the guidance we read, so do not assume it.
Why state tax matters for Nigerian income
Your federal return already includes Nigerian rent, interest, dividends and gains if you are a US citizen or resident. States that tax income usually start from a federal figure, so the same Nigerian income flows into the state return. The federal foreign tax credit reduces federal tax only; whether a state offers anything similar is a state question. Three states with large Nigerian communities show the range.
Texas: no individual income tax
Texas is one of the states with no individual income tax in 2026, alongside Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee and Wyoming, according to the Tax Foundation's 2026 table (February 2026). A Houston or Dallas resident reports Nigerian income federally and has no state income tax return for it. More detail: which US states have no income tax.
Maryland: state tax, county tax and a capital gains add-on
The Comptroller of Maryland's 2025 resident booklet sets out the points that matter:
- Gross income "consists of all income regardless of source", and line 1 of Form 502 is your federal adjusted gross income, so Nigerian income on your federal return is in.
- A local income tax applies on top of the state tax, at the rate for your county of residence on the last day of the tax year. See Maryland county tax on Nigerian income.
- Filers with federal AGI over US$350,000 face an additional 2% tax on certain net capital gain (Form 502CG), which can matter in a year you sell land in Nigeria.
- There is a credit for income taxes paid to other states and localities on Form 502CR. The booklet extract we read does not say whether a foreign country counts.
- The 2025 return was due on 15 April 2026.
Maryland changed its brackets from tax year 2025; take current rates from the booklet rather than older articles.
Georgia: a flat rate
Georgia taxes individual income at a flat rate, which the Tax Foundation reports fell to 5.19% for 2026 from 5.39% under HB 111. The Georgia Department of Revenue says part-year residents file Form 500 with Schedule 3, and gives a standard deduction of US$12,000 for a single filer. Rent from a Lagos flat is part of a Georgia resident's income. More on rent specifically: Georgia state tax on Nigerian rental income.
A worked comparison
Example only. It ignores deductions, credits and brackets, and uses only Georgia's reported flat rate; Maryland is left as a range because its total depends on your state bracket and county. Three cousins each have US$1,500 of net Nigerian rental income after expenses and depreciation.
| State of residence | State tax on the US$1,500 | How it is worked out |
|---|---|---|
| Texas | US$0 | No individual income tax |
| Georgia | US$77.85 | 1,500 × 5.19% |
| Maryland | State bracket rate plus county rate on 1,500 | Check the 2025 booklet tables for both |
Check: 1,500 × 0.0519 = 77.85. If the cousin in Maryland also paid Nigerian tax on the rent, the federal foreign tax credit may absorb it, but that does not reduce the state tax unless the state allows it.
Moving between states
Many people move, for example from Maryland to Texas for work. In the year of the move you are usually a part-year resident of the state you left and taxed there on income for the part of the year you lived there. Georgia's Schedule 3 is the mechanism for part-year residents; Maryland has its own part-year rules in its instructions. Date the move carefully: rent from Nigeria received in March, while you still lived in Maryland, is treated differently from rent received in October in Texas.
What to check first
- Which state were you resident in on each day of the year?
- Does that state tax income, and does it start from federal AGI?
- Does its credit for taxes paid elsewhere cover a foreign country? Read the state's own form instructions; do not assume.
- In Maryland, which county were you living in on 31 December?
- Is a land sale pushing your AGI over Maryland's US$350,000 line?
Where Pryme fits
State returns use the same Nigerian figures as your federal return, so the work is in the records. Rent and interest kept in one naira account in your name, with a dated statement for each year, make both returns easier to prepare and to defend if a state asks questions. A Pryme account can be opened from any US state, and statements can be made verifiable through VerifyDoc.ai (receipts and statements). Keep the exchange-rate source you used for the federal return and use the same dollar figures on the state return, so the two match.
Questions people ask
Do I pay Texas state tax on my Nigerian rent?
No. Texas has no individual income tax, so there is no state income tax on Nigerian income for a Texas resident.
Does Maryland tax my Nigerian income?
Yes, if you are a Maryland resident. Maryland starts from federal AGI and taxes income from all sources, plus a county-level local tax.
What is Georgia's income tax rate for 2026?
The Tax Foundation reports a flat 5.19% for 2026, down from 5.39%. Confirm the rate on the Georgia Department of Revenue's forms.
Can I get state credit for tax paid in Nigeria?
The Maryland guidance we read describes a credit for taxes paid to other states and localities and does not say a foreign country qualifies. Check the state's instructions or ask a preparer.
Sources
- Tax Foundation: State individual income tax rates and brackets, 2026 (17 Feb 2026) · accessed Oct 2026
- Comptroller of Maryland: 2025 Maryland resident tax forms and instructions · accessed Oct 2026
- Georgia Department of Revenue: Residency filing requirements · accessed Oct 2026
- IRS: Foreign tax credit (reviewed 9 Jul 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.