Determination engine

Which state do you actually withhold in?

Reciprocity, convenience-of-the-employer, nonresident thresholds and unemployment localization, applied together to one employee's facts. Every answer cites the state source it came from.

Withhold Virginia income tax.

North Carolina residents get no exemption from Virginia tax, so the work state governs.

Income tax withheld to

Virginia

Graduated, top rate 5.75%

Employee certificate

VA-4

Employee's Virginia Income Tax Withholding Exemption Certificate

Unemployment insurance

Virginia

Localized under factor 1: Localization.

Reciprocal agreement

Virginia has agreements, but not with North Carolina.

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Withhold Virginia nonresident income tax

Virginia taxes wages earned inside the state by nonresidents, and no reciprocal agreement covers North Carolina residents. Virginia requires withholding from the first dollar of in-state wages.

North Carolina also taxes this income, with a credit

The residence state taxes worldwide income. The employee claims a credit on the North Carolina return for tax paid to Virginia, which prevents true double taxation but usually still leaves a balance if North Carolina's rate is higher. Some employers withhold for both states; many withhold only for Virginia and let the employee manage the difference.

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Employer registrations you will need

Virginia — Income tax withholding: Virginia Department of Taxation
Virginia — Unemployment insurance: Virginia Employment Commission (VEC)

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Get the form

VA-4 — Virginia (official state source)

Virginia profile North Carolina profile Full write-up for this pair

Change the inputs

Withholding determination

Answer six questions. The result is a shareable link, so you can paste it into a ticket or an email.

Employee lives inState of residence

Work is performed inWhere the employee physically sits

Employer is based inWhere the work is directed from

Days in the work stateThis calendar year, leave blank if unknown

Wages from work-state daysUS dollars, leave blank if unknown

Arrangement Works remotely rather than at an employer location Remote work is an employer necessity, not employee preference

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This is a determination aid, not advice. StateSide encodes published state rules and applies them mechanically to the facts you enter. It does not know your entity structure, your nexus history, your equity compensation, or the dozens of exceptions that turn a clean rule into a judgement call. Every determination cites the state source it came from — verify against that source, and take anything consequential to a payroll tax professional before you act on it.