17 jurisdictions with agreements

State tax reciprocity, in full.

A reciprocal agreement lets an employee who lives in one state and works in another be taxed only by the state they live in. Read the matrix by row: the row state exempts residents of every highlighted column state.

AKALARAZCACOCTDCDEFLGAHIIAIDILINKSKYLAMAMDMEMIMNMOMSMTNCNDNENHNJNMNVNYOHOKORPARISCSDTNTXUTVAVTWAWIWVWY
Alaska
Alabama
Arkansas
Arizona
California
Colorado
Connecticut
District of Columbia
Delaware
Florida
Georgia
Hawaii
Iowa
Idaho
Illinois
Indiana
Kansas
Kentucky
Louisiana
Massachusetts
Maryland
Maine
Michigan
Minnesota
Missouri
Mississippi
Montana
North Carolina
North Dakota
Nebraska
New Hampshire
New Jersey
New Mexico
Nevada
New York
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Virginia
Vermont
Washington
Wisconsin
West Virginia
Wyoming
Row state exempts column state's residents Same state

Agreements by work state

Frequently confused

Does a reciprocal agreement cover local taxes?

Almost never. Pennsylvania's agreement with New Jersey covers Pennsylvania personal income tax only, so a New Jersey resident working in Philadelphia still owes the Philadelphia Wage Tax in full. Ohio, Indiana, Kentucky, Maryland and Michigan all have local taxes that sit outside their state agreements.

Is reciprocity the same as a credit for taxes paid to another state?

No, and the difference matters in payroll. Reciprocity switches the work state off at source, so only one state's tax is withheld. A credit is a filing-season remedy: both states tax the income, the employer may withhold for both, and the employee recovers the overlap on the resident return.

Do agreements ever end?

Yes. Wisconsin and Minnesota terminated theirs in 2010 and it has not been restored. New Jersey has periodically threatened to end the Pennsylvania agreement. Treat a reciprocal agreement as current policy rather than a permanent fixture, and re-verify before each tax year.