MD-PA Tax Reciprocity 2026

MD-PA reciprocity is active. Common commute: Cecil County MD ↔ Delaware County PA suburbs.

Quick answer: Yes, active reciprocity. MD residents working in PA file REV-419 with employer. PA residents working in MD file MW507 checking reciprocity exemption box.

How It Works Both Directions

ScenarioForm To FileResult
Live MD, work PAMW507 (to skip MD)No PA withholding. Pay MD tax only.
Live PA, work MDREV-419 (to skip PA)No MD withholding. Pay PA tax only.

Worked Example

Sonia lives in Towson MD, works in York PA, earns $68,000. With reciprocity: files REV-419 with PA employer. PA withholds $0 state. MD withholds ~$3,740 state + Baltimore County 3.2% = ~$2,176 county. PA local EIT (1–2% depending on municipality) may still apply and is NOT covered by reciprocity.

Step-by-Step: Claim the Exemption

  1. Download the work-state exemption form (PA form REV-419 for MD-residents-working-in-PA; MD form MW507 for PA-residents-working-in-MD).
  2. Fill in name, SSN, home address (must be in the reciprocity state), and current date.
  3. Submit to HR/payroll at your employer.
  4. Verify on your next paystub that work-state tax withholding is $0.
  5. Update your home-state W-4 to make sure you withhold enough for full income tax.
  6. File only a resident return in your home state next April (unless you have non-wage work-state income).

OBBBA 2026 Note

OBBBA 2026 (One Big Beautiful Bill Act) raised the federal SALT cap to $40,000. This matters for reciprocity commuters who itemize: your full home-state income tax is now more likely to be fully deductible on federal Schedule A, making the state-level tax difference between your home and work state a real after-tax driver of commute value. Check each state rate: MD top rate 5.75% state + 2.25–3.2% county, PA top rate 3.07% flat.

FAQ

Does MD-PA reciprocity cover Pennsylvania local EIT (Earned Income Tax)?

No. PA local EIT (1–2% depending on work municipality) is NOT covered by state reciprocity. MD residents working in PA still owe PA local EIT to the work municipality. MD provides a limited credit for this on MD-502CR.

Which form does a Maryland resident working in Pennsylvania file?

File PA form REV-419 (Employee’s Nonwithholding Application Certificate) with the PA employer. It is valid until the employee revokes it. Re-file annually to be safe.

Does MD-PA reciprocity cover Philadelphia city wage tax?

No. Philadelphia City Wage Tax (3.75% resident / 3.44% nonresident) is NOT covered by reciprocity. MD residents working in Philly owe the 3.44% nonresident wage tax; MD provides a credit for it on MD-502CR.

What’s the form for a PA resident working in Maryland?

File MD form MW507, check box 6 for PA reciprocity exemption. MD employer will stop withholding both MD state tax and MD county piggyback tax.

What if I work in both MD and PA during the year?

File exemption forms in the state(s) where you work but do NOT live. Your W-2 should show wages attributed to each work state. You file resident return in your home state covering all wages.

Model Your Take-Home

See exact post-reciprocity paycheck with MD or PA withholding.

Paycheck Calculator →
Other reciprocity pairs:
NJ-PA · VA-DC · MD-DC · MD-VA · PA-OH · PA-WV · Full matrix

Tax calculations are estimates for educational and informational purposes only. This site does not provide tax, legal, or financial advice. Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. Data sourced from IRS publications and official state tax authority websites.

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