Indiana / Pennsylvania tax reciprocity
Each pair below is taxed by the RESIDENCE state, not the work state — the work state agrees not to withhold. Figures are illustrative, on a $75,000 salary.
Who taxes you, and what to file
The certificate goes to your employer in the state you work in. Figures are state income tax on $75,000, single, no dependents.
| Work in | Live in | Certificate to file | Tax under reciprocity | If the work state taxed you |
|---|---|---|---|---|
| Indiana | Pennsylvania | WH-47 | $2,303 | $2,183 |
| Pennsylvania | Indiana | REV-419 | $2,183 | $2,303 |
The last column is hypothetical — what the work state would take with no agreement in place. It is not a second bill.
Does this cancel the local city or county tax?
Reciprocity is a state income tax concept. A local wage tax is a separate levy and can survive it.
- Working in Indiana
- Bulletin #33: "Indiana reciprocity agreements do not cover withholding requirements concerning Indiana Local Income Taxes... Employees who are residents of reciprocal states are subject to LIT in the same manner as residents of nonreciprocal states." The WH-47 form repeats the warning on its face.
- Working in Pennsylvania
- Pennsylvania LOCAL earned income tax (Act 32) is NOT waived. PA Revenue disclaims jurisdiction over Act 32 and directs inquiries to DCED, whose Act 32 Policy & Procedure Manual states that non-residents of Pennsylvania "should have the earned income tax withheld from their compensation at the nonresident tax rate that has been determined for that location where the employee works" — generally up to 1%.
Sources
- Indiana: Indiana Dept. of Revenue — Income Tax Information Bulletin #33 (December 2024) — https://www.in.gov/dor/files/ib33.pdf
- Pennsylvania: PA Dept. of Revenue — REV-415, General Information for Withholding Pennsylvania Personal Income Tax — https://www.pa.gov/content/dam/copapwp-pagov/en/revenue/documents/formsandpublications/formsforbusinesses/employerwithholding/documents/rev-415.pdf
Run your own Indiana / Pennsylvania numbers
Opens on work in Indiana, live in Pennsylvania. Change the salary, either state, or filing status below.
Indiana / Pennsylvania: common questions
Does Indiana tax Pennsylvania residents who work there?
No. Indiana does not withhold its state income tax from a Pennsylvania resident's wages under the reciprocity relationship in effect for 2026 — that income is taxed by Pennsylvania instead. File WH-47 with your Indiana employer to stop the withholding. Source: Indiana Dept. of Revenue — Income Tax Information Bulletin #33 (December 2024).
Does Pennsylvania tax Indiana residents who work there?
No. Pennsylvania does not withhold its state income tax from an Indiana resident's wages under the reciprocity relationship in effect for 2026 — that income is taxed by Indiana instead. File REV-419 with your Pennsylvania employer to stop the withholding. Source: PA Dept. of Revenue — REV-415, General Information for Withholding Pennsylvania Personal Income Tax.
Does reciprocity also cancel the local city or county tax?
Not necessarily — reciprocity is a state income tax concept, and a local wage tax is a separate levy that can survive it. Indiana: Bulletin #33: "Indiana reciprocity agreements do not cover withholding requirements concerning Indiana Local Income Taxes... Employees who are residents of reciprocal states are subject to LIT in the same manner as residents of nonreciprocal states." The WH-47 form repeats the warning on its face. Pennsylvania: Pennsylvania LOCAL earned income tax (Act 32) is NOT waived. PA Revenue disclaims jurisdiction over Act 32 and directs inquiries to DCED, whose Act 32 Policy & Procedure Manual states that non-residents of Pennsylvania "should have the earned income tax withheld from their compensation at the nonresident tax rate that has been determined for that location where the employee works" — generally up to 1%.
Does reciprocity cover self-employment or 1099 income?
No. Reciprocity covers employee compensation only, and the scope is set by each state's own materials rather than by a common rule — covers salaries, wages, tips and commissions only; other Indiana-source income remains taxable. Self-employment income, rental income, gambling winnings and pass-through income are outside it, and may still require a nonresident return in the work state.
Other pairs involving these states
See all 32 state reciprocity pairs →