Tax Reciprocity
State tax reciprocity agreements.
Find out if you can avoid double state tax withholding when you live in one state and work in another.
Check Your States
Select where you live and where you work to see if there's a reciprocity agreement.
All Reciprocity Agreements
32 state pairs currently have reciprocity agreements.
| State 1 | State 2 |
|---|---|
| District of Columbia | Maryland |
| District of Columbia | Virginia |
| Delaware | Maryland |
| Delaware | Pennsylvania |
| Iowa | Illinois |
| Illinois | Kentucky |
| Illinois | Michigan |
| Illinois | Wisconsin |
| Indiana | Kentucky |
| Indiana | Michigan |
| Indiana | Ohio |
| Indiana | Pennsylvania |
| Indiana | Wisconsin |
| Kentucky | Michigan |
| Kentucky | Ohio |
| Kentucky | Virginia |
| Kentucky | Wisconsin |
| Kentucky | West Virginia |
| Maryland | Pennsylvania |
| Maryland | Virginia |
| Maryland | West Virginia |
| Michigan | Minnesota |
| Michigan | Ohio |
| Michigan | Wisconsin |
| Minnesota | North Dakota |
| Montana | North Dakota |
| New Jersey | Pennsylvania |
| Ohio | Pennsylvania |
| Ohio | West Virginia |
| Pennsylvania | Virginia |
| Pennsylvania | West Virginia |
| Virginia | West Virginia |
Frequently Asked Questions
What is a state tax reciprocity agreement?
A reciprocity agreement is an arrangement between two states that allows residents of one state who work in another to only pay income tax to their home state. Without an agreement, you may have taxes withheld by both states.
How do I claim a reciprocity exemption?
File the appropriate exemption form with your employer. The specific form depends on which state you work in. Your employer will then stop withholding that state's income tax from your paycheck.
Which states have reciprocity agreements?
About 30 state pairs have reciprocity agreements. Common examples include PA-NJ, VA-MD-DC, IL-WI-MI-IN, and OH-IN-KY-WV-PA. Use the tool above to check your specific state combination.
Do I still need to file a tax return in both states?
With a reciprocity agreement and proper exemption form filed, you typically only file in your home state. However, if taxes were withheld before you filed the exemption, you may need to file a nonresident return to get a refund.
What if my states don't have a reciprocity agreement?
You'll have taxes withheld in your work state and need to file a nonresident return there. Your home state will give you a credit for taxes paid to the other state, so you won't be double-taxed.
Does Payroll Beacon replace legal advice?
No. Payroll Beacon provides general information about state payroll laws for educational purposes. This information is not a substitute for professional legal or accounting advice. Consult with a qualified tax professional for advice specific to your situation.