US State Tax Reciprocity Matrix 2026

Complete 2026 dataset of state income tax reciprocity agreements. Find out if you can skip nonresident withholding when commuting across state lines.

Quick Answer

If both states in your commute appear in the table below, you file a nonresident exemption form with your employer and skip work-state withholding. If NOT listed, you must withhold in both states and reconcile via a credit on your home state return.

2026 Reciprocity Matrix

Work State → Resident States where reciprocity applies.

Work StateResidents With Reciprocity
DCMD, VA
IAIL
ILIA, KY, MI, WI
INKY, MI, OH, PA, WI
KYIL, IN, MI, OH, VA, WI, WV
MDDC, PA, VA, WV
MIIL, IN, KY, MN, OH, WI
MNMI, ND
MTND
NDMN, MT
NJPA
OHIN, KY, MI, PA, WV
PAIN, MD, NJ, OH, VA, WV
VADC, KY, MD, PA, WV
WIIL, IN, KY, MI
WVKY, MD, OH, PA, VA

States With NO Reciprocity (High Commuter Volume)

How to File Reciprocity Exemption

  1. Check the matrix above — confirm your resident state has reciprocity with your work state.
  2. Download the work-state nonresident exemption form (PA: REV-419, NJ: NJ-165, OH: IT 4NR, MD: MW507, VA: VA-4, WV: WV/IT-104R, KY: 42A809, IN: WH-47, MI: MI-W4, WI: W-220, IL: IL-W-5-NR).
  3. Submit to HR/payroll. Employer stops withholding work-state tax.
  4. Update your home-state W-4 to withhold enough to cover your full income.
  5. File only a resident return next April in your home state. No nonresident return needed unless you had non-wage income in the work state.

Check Your Specific Pair

Detailed guides for the 16 highest-commuter-volume reciprocity pairs:

NJ-PAVA-DCMD-DCMD-VAMD-PAPA-OHPA-WVPA-VAOH-KYOH-MIOH-INOH-WVKY-WVKY-INIL-WIMI-WI

FAQ

What is state tax reciprocity?

State tax reciprocity is an agreement between two states that lets residents of one state work in the other without having state income tax withheld by the work state. The employee files an exemption form with their employer, and the work state stops withholding. The resident pays tax only to their home state.

Which states have reciprocity agreements in 2026?

As of 2026, 17 states plus DC have active reciprocity: DC, IA, IL, IN, KY, MD, MI, MN, MT, ND, NJ, OH, PA, VA, WI, WV. Notable: NY, NJ-to-NY, CT, MA, CA, TX, FL have NO reciprocity agreements. NY-NJ commuters must withhold in both states and claim credit on home-state return.

How do I claim reciprocity exemption with my employer?

File the work state's nonresident exemption form with HR/payroll. Common forms: PA (REV-419), NJ (NJ-165), OH (IT 4NR), MD (MW507), VA (VA-4), WV (WV/IT-104R), KY (42A809), IN (WH-47), MI (MI-W4), WI (W-220), IL (IL-W-5-NR). Employer stops withholding work-state tax; you withhold home-state tax instead.

What if I forgot to file the reciprocity form?

If withholding went to the wrong state, file a nonresident return in the work state (claiming $0 income under reciprocity) to get a full refund of what was withheld. Then file resident return in your home state and pay what you owe. For the current year, file the exemption form now so future paychecks withhold correctly.

Do reciprocity agreements cover local/city taxes?

No. Reciprocity only covers state income tax. Local taxes (PA local EIT, OH municipal tax, NYC MCTMT, MD county piggyback tax) are NOT covered. If you work in a city with local wage tax, you likely still owe it regardless of reciprocity.

Sources: State Department of Revenue publications (2026); PA DOR REV-419; NJ Division of Taxation NJ-165; OH DOT IT 4NR instructions; MD Comptroller MW507; VA DOT VA-4; WV State Tax Department WV/IT-104R; KY DOR 42A809; IN DOR WH-47; MI Treasury MI-W4 instructions.

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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