VA-DC Tax Reciprocity 2026

VA-DC reciprocity is active in 2026. This is one of the nation's highest-volume commuter corridors (~400K daily VA-to-DC commuters).

Quick answer: Yes, active reciprocity. VA residents working in DC file D-4A (DC Certificate of Non-residence) to skip DC withholding. DC residents working in VA file VA-4 (Employee's VA Income Tax Withholding Exemption Certificate).

How It Works Both Directions

ScenarioForm To FileResult
Live VA, work DCD-4A (to skip DC)No DC withholding. Pay VA tax only.
Live DC, work VAVA-4 (to skip VA)No VA withholding. Pay DC tax only.

Worked Example

Marcus lives in Arlington VA, works in DC, earns $120,000. Without reciprocity: DC withholds ~$10,200 (8.5% on income over $60K), VA taxes him too and he claims a credit. With reciprocity: files D-4A with DC employer. DC withholds $0. VA withholds ~$6,300 (5.75% on top). Net saves $3,900/yr in the DC-vs-VA rate gap, though he would have gotten the difference back via credits. Key benefit: only one tax return (VA) instead of two.

Step-by-Step: Claim the Exemption

  1. Download the work-state exemption form (DC form D-4A for VA-residents-working-in-DC; VA form VA-4 for DC-residents-working-in-VA).
  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: VA top rate 5.75% (over $17K), DC top rate 10.75% (over $1M).

FAQ

Does DC have reciprocity with every state?

Yes. DC uniquely maintains reciprocity with every US state and territory. Any nonresident working in DC can file D-4A to exempt DC withholding, regardless of their home state.

Which form do I file for VA-DC reciprocity?

If you live in VA and work in DC: file D-4A with your DC employer. If you live in DC and work in VA: file VA-4 claiming the nonresident exemption with your VA employer.

Does reciprocity apply to Federal workers commuting into DC?

Yes. Federal employees (DOD, State Dept, etc.) commuting from VA to a DC workplace are subject to the same reciprocity rules. File D-4A through your agency’s HR/payroll office.

What about VA residents working in Maryland instead of DC?

VA-MD also has active reciprocity. VA residents working in MD file form MW507 (MD exemption) with their Maryland employer. Separate page: see /md-va-reciprocity.

Is the 183-day rule relevant for VA-DC commuters?

No. Reciprocity applies regardless of number of days worked in the other state. The 183-day rule applies only to determining domicile/residency, not reciprocity withholding.

Model Your Take-Home

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

Paycheck Calculator →

Run the numbers for each state: Virginia Income Tax Calculator · District of Columbia Income Tax Calculator

Other reciprocity pairs:
MD-DC · MD-VA · MD-PA · MD-WV · 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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