Kentucky / Virginia 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 |
|---|---|---|---|---|
| Kentucky | Virginia | 42A809 | $3,498 | $2,507 |
| Virginia | Kentucky | VA-4 | $2,507 | $3,498 |
The last column is hypothetical — what the work state would take with no agreement in place. It is not a second bill.
Conditions you have to meet
This calculator cannot check these. The figures above assume they are met.
- Work in Kentucky, live in Virginia
- The employee must commute DAILY to their place of employment in Kentucky. Form 42A809 states the requirement explicitly: "(Must commute daily to apply.)"
- Work in Virginia, live in Kentucky
- The employee must commute to Virginia DAILY and receive only wage or salary income in Virginia.
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 Kentucky
- Kentucky local occupational license fees are not recoverable under reciprocity: Form 740-NP-R, the reciprocal-state refund return, instructs "Do not include local tax withheld." Kentucky publishes no explicit statement that local fees survive, so this rests on the refund return rather than a direct sentence.
Sources
- Kentucky: Kentucky Dept. of Revenue — 103 KAR 17:140, Individual income tax — reciprocity — nonresidents — https://revenue.ky.gov/Dor%20Training%20Materials/103%20KAR%2017.140.%20Individual%20income%20tax%20-%20reciprocity%20-%20nonresidents.pdf
- Virginia: Virginia Dept. of Taxation — Reciprocity — https://www.tax.virginia.gov/reciprocity
Run your own Kentucky / Virginia numbers
Opens on work in Kentucky, live in Virginia. Change the salary, either state, or filing status below.
Kentucky / Virginia: common questions
Does Kentucky tax Virginia residents who work there?
No. Kentucky does not withhold its state income tax from a Virginia resident's wages under the reciprocity relationship in effect for 2026 — that income is taxed by Virginia instead. File 42A809 with your Kentucky employer to stop the withholding. Source: Kentucky Dept. of Revenue — 103 KAR 17:140, Individual income tax — reciprocity — nonresidents.
Does Virginia tax Kentucky residents who work there?
No. Virginia does not withhold its state income tax from a Kentucky resident's wages under the reciprocity relationship in effect for 2026 — that income is taxed by Kentucky instead. File VA-4 with your Virginia employer to stop the withholding. Source: Virginia Dept. of Taxation — Reciprocity.
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. Kentucky: Kentucky local occupational license fees are not recoverable under reciprocity: Form 740-NP-R, the reciprocal-state refund return, instructs "Do not include local tax withheld." Kentucky publishes no explicit statement that local fees survive, so this rests on the refund return rather than a direct sentence.
Are there conditions I have to meet to qualify?
Yes — and this calculator cannot check them for you, so confirm each one applies before relying on the figures above. Working in Kentucky while living in Virginia: The employee must commute DAILY to their place of employment in Kentucky. Form 42A809 states the requirement explicitly: "(Must commute daily to apply.)" Working in Virginia while living in Kentucky: The employee must commute to Virginia DAILY and receive only wage or salary income in Virginia.
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 — the income covered differs by partner state: Illinois, Ohio and West Virginia cover wages and salaries; Indiana adds commissions; Michigan and Wisconsin cover income from personal services. 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 →