For states with reciprocity agreements, workers only pay taxes in the state where they live, not the state where they perform the work. As an example, a person who lives in VA but works in West VA would not have to pay state taxes in West VA, because the two states have a tax reciprocity agreement. This goes for local taxes also.
If the two states do not have reciprocity, tax must be paid to both states but a credit for tax paid to the non-resident state is usually available from the state of residence at tax time.
Here is a list of states with reciprocity agreements from https://www.taxact.com
| State | States in Agreement | Certificate/Form to Use |
| Arizona | California, Indiana, Oregon, Virginia | Form WEC Withholding Exemption Certificate |
| District of Columbia | All nonresidents who work in DC can claim exemption from withholding for the DC income tax. | Form D-4A Certificate of Nonresidence in the District of Columbia |
| Illinois | Iowa, Kentucky, Michigan, Wisconsin | Form IL-W-5-NR Employee’s Statement of Nonresidence in Illinois |
| Indiana | Kentucky, Michigan, Ohio, Pennsylvania, Wisconsin | Form WH-47 Certificate of Residence |
| Iowa | Illinois | Form 44-016 Employee’s Statement of Nonresidence in Iowa |
| Kentucky | Illinois, Indiana, Michigan, Ohio, West Virginia, Wisconsin, Virginia | Form 42A809 Certificate of Nonresidence |
| Maryland | District of Columbia, Pennsylvania, Virginia, West Virginia | Form MW 507 Employee’s Maryland Withholding Exemption Certificate |
| Michigan | Wisconsin, Indiana, Kentucky, Illinois, Ohio, Minnesota | Form MI-W4 Employee’s Michigan Withholding Exemption Certificate |
| Minnesota | Michigan, North Dakota | Form MWR Reciprocity Exemption/Affidavit of Residency for Tax Year 2020 |
| Montana | North Dakota | Form NR-2 Employee Certificate of North Dakota Residence |
| New Jersey | Pennsylvania | Form NJ-165 Employee’s Certificate of Nonresidence in New Jersey |
| North Dakota | Minnesota, Montana | Form NDW-R Reciprocity exemption from withholding for qualifying Minnesota and Montana residents working in North Dakota |
| Ohio | Indiana, Kentucky, Michigan, Pennsylvania, West Virginia | Form IT-4NR Employee’s Statement of Residency in a Reciprocity State |
| Pennsylvania | Indiana, Maryland, New Jersey, Ohio, Virginia, West Virginia | Form REV-419 Employee’s Nonwithholding Application Certificate |
| Virginia | Kentucky, Maryland, District of Columbia, Pennsylvania, West Virginia | Form VA-4 Personal Exemption Worksheet |
| West Virginia | Kentucky, Maryland, Ohio, Pennsylvania, Virginia | Form WV/IT-104 Employee’s Withholding Exemption Certificate |
| Wisconsin | Illinois, Indiana, Kentucky, Michigan | Form W-220 Nonresident Employee’s Withholding Reciprocity Declaration |
Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.
Be Audit-Secure™!
Lisa Smith, SPHR, SCP
EEOC Certified Investigator
____________________________________________________________________________________________________________________Want even more advice, given just to you? Sign Up for an annual membership today and receive unlimited advice from SPHR Certified pros & our “Ask An Attorney” feature found only with our Annual Membership. Learn More Here
