State Tax Reciprocity Agreements for Remote Workers (2026)
Which states have verified personal income tax reciprocal agreements, and what they cover — verified from primary sources only.
Last updated
Overview
As of October 2026, we have verified personal income tax reciprocal agreements from primary sources (state Department of Revenue websites, official bulletins, and statutes) for the states and jurisdictions listed below. We do not publish any agreement that we cannot verify from a primary source.
This page reflects only verified information. If a state or jurisdiction is not listed here as having a verified agreement with another, it means we could not locate a primary source confirming that agreement — not that it does not exist.
How Reciprocity Works
When two states have a reciprocal agreement for personal income tax:
- The work state agrees not to tax wages and salary earned by residents of the partner state who work across the border.
- The employee's home state agrees to tax that income as if it were earned within the home state.
- The employee typically files only a resident state return and may need to submit an exemption form to their employer to prevent withholding in the work state.
Important: Reciprocity usually applies only to wages and salary. Other income types (e.g., business income, gambling winnings) are often excluded. Always check the specific terms of each agreement.
Verified Reciprocal Agreements
The following tables list agreements verified from primary sources. Each entry includes the partner state, the source URL, and a verbatim quote where available. Agreements are bidirectional unless noted otherwise.
Northeast & Mid-Atlantic
| State | Verified Partners | Primary Source | Notes |
|---|---|---|---|
| Pennsylvania (PA) | Indiana, Maryland, New Jersey, Ohio, Virginia, West Virginia | pa.gov/agencies/revenue/.../determining-residency | Quote: "PA has reciprocal tax agreements with Indiana, Maryland, New Jersey, Ohio, Virginia, and West Virginia." No "last updated" date shown on page. |
| New Jersey (NJ) | Pennsylvania only | nj.gov/treasury/taxation/njit25.shtml | Quote: "Compensation paid to Pennsylvania residents employed in New Jersey is not subject to New Jersey Income Tax under the terms of the Reciprocal Personal Income Tax Agreement between the states." Last updated: Monday, 09/28/26. NJ has no other verified reciprocal agreements. |
| District of Columbia (DC) | None (by rule, not by omission) | D.C. Official Code § 1-206.02 | DC imposes no tax on the personal income of nonresidents (defined as those not residing in DC for 183+ days). DC does not publish a reciprocal-partner list; instead, other states (VA, MD) list DC as a partner. |
| Maryland (MD) | District of Columbia, Pennsylvania, Virginia, West Virginia | Maryland Administrative Release No. 3 (PDF) | Quote: "At present, Maryland has written reciprocal agreements with Pennsylvania, Virginia, West Virginia and the District of Columbia." Revised: September 2011 (PDF server timestamp 19 Aug 2025). |
| Virginia (VA) | District of Columbia, Kentucky, Maryland, Pennsylvania, West Virginia | tax.virginia.gov/reciprocity | Quote: "States that have reciprocity with Virginia are:" → bullets for DC, Kentucky, Maryland, Pennsylvania, West Virginia. No "last updated" date shown. |
| West Virginia (WV) | Kentucky, Maryland, Ohio, Pennsylvania, Virginia | WV 2025 Personal Income Tax Forms and Instructions (PDF) | Quote: "Due to existing reciprocal agreements, West Virginia residents cannot claim the Schedule E credit if the credit claimed is for state income taxes paid on wage and salary or unemployment compensation income earned in Kentucky, Maryland, Ohio, Pennsylvania, or Virginia." 2025 booklet. |
| Kentucky (KY) | Illinois, Indiana, Michigan, Ohio, Virginia, West Virginia, Wisconsin | 103 KAR 17:140 (Kentucky Administrative Regulations) | Quote: "A list of states that Kentucky has negotiated reciprocal agreements and the type of income exemption available are listed in this section:" followed by the seven subsection headings verbatim. Regulation incorporates agreements dated 1964–1972. |
Midwest
| State | Verified Partners | Primary Source | Notes |
|---|---|---|---|
| Illinois (IL) | Iowa, Kentucky, Michigan, Wisconsin | tax.illinois.gov/individuals/filingrequirements.html | Quote: "an Illinois resident who worked in Iowa, Kentucky, Michigan, or Wisconsin, you must file Form IL-1040 and include as Illinois income any compensation you received from an employer in these states..." |
| Indiana (IN) | Kentucky, Michigan, Ohio, Pennsylvania, Wisconsin | Indiana Income Tax Information Bulletin #28 (PDF) | Quote: "Five states have a reciprocal agreement with the state of Indiana. They are Kentucky, Michigan, Ohio, Pennsylvania, and Wisconsin." Publication Date: December 2024. References multiple IC sections. |
| Iowa (IA) | Illinois only | revenue.iowa.gov/.../iowa-illinois-reciprocal-agreement | Quote: "Iowa and Illinois have a reciprocal agreement for individual income tax purposes. At this time, Iowa's only income tax reciprocal agreement is with Illinois." |
| Michigan (MI) | Illinois, Indiana, Kentucky, Minnesota, Ohio, Wisconsin | Michigan Revenue Administrative Bulletin 2017-13 | Quote: "Pursuant to MCL 206.256, Michigan has entered into reciprocal agreements with each of the following states:" followed by a table with effective dates. Approved June 1, 2017; still listed as active/not replaced. |
| Minnesota (MN) | Michigan, North Dakota | revenue.state.mn.us/reciprocity | Quote: "Minnesota has income tax reciprocity agreements with Michigan and North Dakota." Last Updated December 17, 2025. Wisconsin is NOT an active partner (agreement terminated effective tax year 2010). |
| North Dakota (ND) | Minnesota, Montana | tax.nd.gov/non-resident | Quote: "North Dakota has a reciprocal agreement with Minnesota and Montana for individual income tax purposes." Citation: N.D.C.C. § 57-38.1 and § 57-38-04(5) shown at page bottom. |
| Wisconsin (WI) | Illinois, Indiana, Kentucky, Michigan | revenue.wi.gov/faqs/pcs-work.aspx | Quote: "Wisconsin currently has reciprocity agreements with four states: Illinois, Indiana, Kentucky, and Michigan." Enacted as of November 24, 2025. Wisconsin does not have an active agreement with Iowa or Minnesota. |
South
The southeastern states (Alabama, Georgia, North Carolina, South Carolina, Tennessee) do not have broad reciprocal agreements for wages and salary verified from primary sources as of October 2026. Always check each state's DOR for limited or industry-specific agreements.
West
The western states (Arizona, California, Colorado, etc.) generally do not have reciprocal agreements for wages and salary. California, for example, follows the source rule (taxes work performed within the state) and does not have reciprocity with other states for remote work wages. Always verify from each state's DOR.
Important Limitations
- Coverage: Reciprocity typically covers only wages and salary (employee compensation). Other income types are often excluded.
- Documentation: Employees usually need to submit an exemption form (e.g., PA REV-419, NJ-W4, IN WH-47) to their employer to prevent withholding in the work state.
- Changes: Agreements can be modified or terminated. Always verify the current status from the state DOR.
- Primary sources only: We do not publish any agreement that we cannot verify from a state Department of Revenue, official bulletin, or statute. This page reflects verified information as of October 2026.