PA-VA Tax Reciprocity 2026

PA-VA reciprocity is active. Primarily serves remote workers whose employer is in the other state.

Quick answer: Yes, active reciprocity. PA residents working in VA file VA-4 claiming nonresident exemption. VA residents working in PA file REV-419.

How It Works Both Directions

ScenarioForm To FileResult
Live PA, work VAVA-4 (to skip VA)No VA withholding. Pay PA tax only.
Live VA, work PAREV-419 (to skip PA)No PA withholding. Pay VA tax only.

Worked Example

Renata lives in Philly, remote-works for a Richmond VA company, earns $95,000. With reciprocity: files VA-4 exemption with VA employer. VA withholds $0. PA withholds ~$2,917 (3.07%). Plus Philly wage tax 3.75% = $3,563. Total state/local ~$6,480. Without reciprocity: VA would withhold 5.75% = $5,463 and she'd need a VA nonresident return + PA resident return with credit. Reciprocity saves the second return.

Step-by-Step: Claim the Exemption

  1. Download the work-state exemption form (VA form VA-4 for PA-residents-working-in-VA; PA form REV-419 for VA-residents-working-in-PA).
  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: PA top rate 3.07% flat, VA top rate 5.75% (over $17K).

FAQ

What form do I use to skip VA withholding as a PA resident?

File VA-4, checking the exemption box for nonresident in a reciprocity state. The exemption covers wages only, not non-wage VA-source income.

Is reciprocity relevant for remote workers?

Yes. Even if you never physically go to VA, if your employer is VA-based they may default to VA withholding. File VA-4 to redirect withholding to PA.

Does PA resident working remotely for a VA employer owe Philly wage tax?

Yes, if you live in Philadelphia. The 3.75% Philly wage tax applies to all Philly residents’ wages regardless of employer location.

What triggers the VA employer to withhold VA tax if I never go there?

VA law requires employer withholding when the employer’s nexus is VA, unless the employee files a reciprocity exemption. This is stricter than most states.

Can I claim PA local EIT credit for VA tax paid?

No. Local EIT is a separate tax with no reciprocity or credit provisions. PA residents with VA W-2 wages pay local EIT to their home municipality in full.

Model Your Take-Home

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

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