States use an apportionment formula to determine what portion of a multistate corporation’s total income is taxable within their borders. The most common method is [UDITPA](https://www.taxnotes.com/tax-notes-state/allocation-and-apportionment/economic-presence-after-wayfair-evolving-income-tax-enforcement-multistate-businesses/2019/10/28/29gpn), which apportions income based on the company’s property, payroll, and sales within each state. Some states use alternative formulas that give more weight to sales or other factors.
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