State tax reciprocity agreements
64 sourced relationships across 32 state pairs. Each one is read from the work state's own publication — the state that would otherwise withhold is the one whose word governs whether it does.
Where do I withhold?
Pick where you live and where your employer is. Most pairs are not reciprocal — this answers those too, with the same rule this site's own paycheck calculator applies.
Every reciprocal pair, by state
Each page shows both directions of the pair, the certificate form for each, an estimated comparison, and any eligibility conditions the agreement carries.
Certificate forms and local tax, by work state
The certificate goes to your employer in the state you work in. The right-hand column is the part most summaries get wrong — reciprocity is a state tax concept, and a local wage tax can survive it.
| Work state | Exempts residents of | Certificate | Local tax |
|---|---|---|---|
| Arizona | California · Indiana · Oregon · Virginia | WEC | No local wage tax |
| Illinois | Iowa · Kentucky · Michigan · Wisconsin | IL-W-5-NR | Not addressed by the state |
| Indiana | Kentucky · Michigan · Ohio · Pennsylvania · Wisconsin | WH-47 | Local tax still applies |
| Iowa | Illinois | Form 44-016 | No local wage tax |
| Kentucky | Illinois · Indiana · Michigan · Ohio · Virginia · West Virginia · Wisconsin | 42A809 | Local tax still applies |
| Maryland | Washington, DC · Virginia · West Virginia · Pennsylvania | MW507 | Local tax still applies |
| Michigan | Illinois · Indiana · Kentucky · Minnesota · Ohio · Wisconsin | No state form (employer-developed form or letter; MI-W4 line 8b) | Local tax still applies |
| Minnesota | Michigan · North Dakota | MWR | No local wage tax |
| Montana | North Dakota | MW-4 | No local wage tax |
| New Jersey | Pennsylvania | NJ-165 | No local wage tax |
| North Dakota | Minnesota · Montana | NDW-R | No local wage tax |
| Ohio | Indiana · Kentucky · Michigan · Pennsylvania · West Virginia | IT 4 | School district waived; municipal not addressed |
| Pennsylvania | Indiana · Maryland · New Jersey · Ohio · Virginia · West Virginia | REV-419 | Local tax still applies |
| Virginia | Washington, DC · Kentucky · Maryland · Pennsylvania · West Virginia | VA-4 | No local wage tax |
| Washington, DC | Maryland · Virginia | D-4A | No local wage tax |
| West Virginia | Kentucky · Maryland · Ohio · Pennsylvania · Virginia | WV/IT-104NR | Not addressed by the state |
| Wisconsin | Illinois · Indiana · Kentucky · Michigan | W-220 | No local wage tax |
Arizona is listed because it exempts four states' residents, but it is not an agreement — it is a one-way credit-triggered withholding exception under A.R.S. § 43-1096, and none of those four states exempts an Arizona resident in return.
Common questions
What is a state tax reciprocity agreement?
An arrangement where the state you WORK in agrees not to withhold its income tax from residents of a named neighbouring state, leaving that wage income taxed only by the state you LIVE in. Without one, the work state withholds and you claim a credit on your home state's return to avoid being taxed twice. Reciprocity replaces that round trip with a single filing, but only if you file the work state's certificate with your employer — it is not automatic.
Which states have reciprocity agreements in 2026?
17 jurisdictions publish a reciprocity list or equivalent statutory bar, covering 64 directed relationships across 32 state pairs. They cluster in the Midwest and Mid-Atlantic, where daily interstate commuting is common. Every relationship listed here is sourced from the WORK state's own publication — the state that would otherwise withhold is the one whose word governs whether it does.
Does reciprocity cancel city and county taxes too?
Often not, and this is the most consequential misunderstanding. Reciprocity is a state income tax concept. Indiana's county LIT, Michigan's city income taxes, Pennsylvania's Act 32 local earned income tax, Kentucky's occupational licence fees and Maryland's county tax all survive it — each of those states says so in its own materials. Ohio waives school district tax but has never addressed municipal tax either way, and Illinois and West Virginia are silent. Silence is recorded here as unaddressed, never as waived.
Is Illinois and Indiana reciprocal?
No. This pair is widely and wrongly listed as reciprocal. Illinois Publication 130 settles it in its own worked example, which describes "Tom is an Illinois resident who works only in Indiana (a non-reciprocal state)." An Illinois resident working in Indiana is withheld on by Indiana and claims a credit from Illinois. Minnesota/Wisconsin and Kentucky/Pennsylvania are likewise not reciprocal, despite appearing on aggregator lists.
Do I still have to file a return in the state I work in?
Usually not for that wage income, once the certificate is on file and no tax was withheld — but reciprocity covers employee compensation only. Self-employment income, rental income, gambling winnings and pass-through income from the work state fall outside every agreement here and can still require a nonresident return. If the work state withheld in error, you generally recover it by filing that state's nonresident or reciprocal refund return, not by adjusting your home state's.