VA-KY reciprocity covers the Appalachian border corridor - Lee, Scott, and Wise County VA with Bell, Harlan, and Pike County KY. Unlike most reciprocity agreements, the VA-KY deal applies only to daily commuters.
| Scenario | Form To File | Result |
|---|---|---|
| Live VA, work KY | 42A809 (to skip KY) | No KY withholding. Pay VA tax only. |
| Live KY, work VA | VA-4 (to skip VA) | No VA withholding. Pay KY tax only. |
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), KY top rate 3.5% flat (2026).
The daily-commute condition. Per Virginia Tax, the VA-KY agreement covers residents who commute DAILY across the border and receive only wage or salary income from the work state. Most other agreements (VA-MD, VA-WV, VA-PA) have no daily-commute requirement. If you work in KY but stay there during the week, the exemption may not apply.
File VA form VA-4 with your Virginia employer, certifying the reciprocity exemption. Virginia requires you to re-certify the exemption every year.
File KY form 42A809 (Certificate of Nonresidence) with your Kentucky employer. KY state withholding stops; Virginia tax is withheld instead.
Yes. KY city and county occupational fees tax wages earned within their boundaries regardless of reciprocity. A VA resident working in a KY city with an occupational fee still pays that local fee; Virginia allows no credit for it.
Probably not by the commuter rule. If you maintain a place of abode in Virginia or do not commute daily, the standard nonresident rules apply: VA taxes the wages, and you claim a credit on your KY return. Check Virginia Tax’s reciprocity guidance or a preparer before claiming exemption.
See exact post-reciprocity paycheck with VA or KY withholding.
Paycheck Calculator →Run the numbers for each state: Virginia Income Tax Calculator · Kentucky Income Tax Calculator
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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