Taxation rate for H1B employees working in different states


I would like to know if H1B tax rates depend on the employees work location or employeess home location. Like if an employee is working for ABC client located at say California, but working remotely from say Dallas, in such a case wil the tax rate bebased on CA rate or Texas rate.

It’s the employee’s location. If the employer is deducting taxes based on his location state, then you will have to file two state tax return forms. One for in-state (TX) and one for out-of-state (CA).