For states with reciprocity agreements, workers only pay taxes in the state where they live, not the state where they perform the work. As an example, a person who lives in VA but works in West VA would not have to pay state taxes in West VA, because the two states have a tax reciprocity agreement. This goes for local taxes also.
If the two states do not have reciprocity, tax must be paid to both states but a credit for tax paid to the non-resident state is usually available from the state of residence at tax time.
Here is a list of states with reciprocity agreements from https://www.taxact.com
State
States in Agreement
Certificate/Form to Use
Arizona
California, Indiana, Oregon, Virginia
Form WEC Withholding Exemption Certificate
District of Columbia
All nonresidents who work in DC can claim exemption from withholding for the DC income tax.
Form D-4A Certificate of Nonresidence in the District of Columbia
Illinois
Iowa, Kentucky, Michigan, Wisconsin
Form IL-W-5-NR Employee’s Statement of Nonresidence in Illinois
Indiana
Kentucky, Michigan, Ohio, Pennsylvania, Wisconsin
Form WH-47 Certificate of Residence
Iowa
Illinois
Form 44-016 Employee’s Statement of Nonresidence in Iowa
Kentucky
Illinois, Indiana, Michigan, Ohio, West Virginia, Wisconsin, Virginia
Form 42A809 Certificate of Nonresidence
Maryland
District of Columbia, Pennsylvania, Virginia, West Virginia
Form MW 507 Employee’s Maryland Withholding Exemption Certificate
Michigan
Wisconsin, Indiana, Kentucky, Illinois, Ohio, Minnesota
Form MI-W4 Employee’s Michigan Withholding Exemption Certificate
Minnesota
Michigan, North Dakota
Form MWR Reciprocity Exemption/Affidavit of Residency for Tax Year 2020
Montana
North Dakota
Form NR-2 Employee Certificate of North Dakota Residence
New Jersey
Pennsylvania
Form NJ-165 Employee’s Certificate of Nonresidence in New Jersey
North Dakota
Minnesota, Montana
Form NDW-R Reciprocity exemption from withholding for qualifying Minnesota and Montana residents working in North Dakota
Ohio
Indiana, Kentucky, Michigan, Pennsylvania, West Virginia
Form IT-4NR Employee’s Statement of Residency in a Reciprocity State
Pennsylvania
Indiana, Maryland, New Jersey, Ohio, Virginia, West Virginia
Form REV-419 Employee’s Nonwithholding Application Certificate
Virginia
Kentucky, Maryland, District of Columbia, Pennsylvania, West Virginia
Form VA-4 Personal Exemption Worksheet
West Virginia
Kentucky, Maryland, Ohio, Pennsylvania, Virginia
Form WV/IT-104 Employee’s Withholding Exemption Certificate
Wisconsin
Illinois, Indiana, Kentucky, Michigan
Form W-220 Nonresident Employee’s Withholding Reciprocity Declaration
Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.
Be Audit-Secure!
Lisa Smith, SPHR, SCP
EEOC Certified Investigator
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