PaycheckCalc

Cross-state commuters

Live in one state, work in another (2026)

By Barron Hansen, Founder · Updated July 14, 2026

Millions of people cross a state line to get to work, and the tax rules that follow them are the most misunderstood part of the code. Some pairs of states have an agreement that means the work state takes nothing. Some do not, and both states tax the same paycheck. And in either case, a city tax can survive the agreement entirely.

The commuter corridors we cover

12 with a reciprocity agreement, 3 without. Each guide computes the actual number for that corridor, names the form you file, and flags the local tax where one survives the agreement.

CommuteAgreement?Form you file
Live in New Jersey, work in New YorkNew Jersey into New York CityNo, resident creditNY Form IT-203
Live in Connecticut, work in New YorkConnecticut into New York CityNo, resident creditNY Form IT-203
Live in New York, work in New JerseyNew York City into New JerseyNo, resident creditNJ Form NJ-1040NR
Live in New Jersey, work in PennsylvaniaSouth Jersey into PhiladelphiaYesPA Form REV-419
Live in Pennsylvania, work in New JerseyPennsylvania into New JerseyYesNJ Form NJ-165
Live in Maryland, work in District of ColumbiaMaryland into Washington, DCYesDC Form D-4A
Live in Virginia, work in District of ColumbiaVirginia into Washington, DCYesDC Form D-4A
Live in District of Columbia, work in MarylandWashington, DC into MarylandYesMD Form MW507
Live in District of Columbia, work in VirginiaWashington, DC into VirginiaYesVA Form VA-4
Live in Maryland, work in VirginiaMaryland into Northern VirginiaYesVA Form VA-4
Live in Virginia, work in MarylandVirginia into MarylandYesMD Form MW507
Live in Wisconsin, work in IllinoisSouthern Wisconsin into ChicagoYesIL Form IL-W-5-NR
Live in Illinois, work in WisconsinNorthern Illinois into WisconsinYesWI Form W-220
Live in Kentucky, work in OhioNorthern Kentucky into CincinnatiYesOH Form IT 4NR
Live in Kentucky, work in IndianaLouisville into southern IndianaYesIN Form WH-47

The mistake almost every calculator makes

A reciprocity agreement removes the work state's income tax. It removes nothing else. City and county taxes are levied under separate authority, and several of them reach straight through an agreement to the commuter on the other side of it.

Philadelphia is the clearest case. A New Jersey resident working in the city pays no Pennsylvania income tax, because the two states have an agreement, and pays the Philadelphia wage tax in full, because the city sits outside that agreement and every other one. Ohio does the same thing with its municipal tax, which is levied where the wages are earned, and Indiana with its county tax. Zero out the city tax along with the state tax and the answer is thousands of dollars a year too low.

Each guide below computes both layers, from the same tax engine that powers the state and city calculators, and says plainly which of the two the agreement actually touches.

Cross-state commuting FAQ

What is a state reciprocity agreement?
A compact between two states under which the work state agrees not to tax the other state's residents on their wages. You file an exemption certificate with your employer, the work state withholds nothing, and you are taxed only at home. Fifty-eight such pairs exist.
What happens if there is no agreement?
Both states tax the same wages. The work state taxes you as a nonresident, and your resident state grants a credit for the tax you paid, capped at what it would have charged itself. The practical result is that you pay the higher of the two states' rates, not both.
Does reciprocity cover city and county taxes?
No, and this is where most calculators go wrong. A state agreement exempts you from the work state's income tax and reaches nothing else. The Philadelphia wage tax, Ohio's municipal taxes and Indiana's county tax are all still owed by a commuter whose state tax is zero.
Do I still file a tax return in the work state?
Under reciprocity, usually not, provided the exemption certificate is on file and nothing was withheld. Without an agreement you file a nonresident return in the work state and a resident return at home, claiming the credit on the latter.
Which commutes are not covered here?
Any pair whose rule is not published by the states themselves. New Hampshire to Massachusetts and Indiana to Illinois are the two most searched, and we do not estimate either: we would be guessing, and a guessed reciprocity agreement is worth less than no answer at all.
What if I work from home part of the week?
These guides assume every workday is spent in the work state. A split week would apportion both the credit and any local tax, and New York's convenience-of-the-employer rule can source a remote day back to New York anyway. Treat a hybrid schedule as a reason to check with a professional.

Reviewed

How This Page Is Reviewed

Reciprocity agreements and the forms that claim them are taken from each state's own revenue department guidance and withholding certificates. Pairs whose rule is not published by the states are not estimated.

Reviewed by

PaycheckCalc Research Desk

Last reviewed

2026-07-14