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State Tax Reciprocity Agreements: Complete List

A reciprocity agreement lets you pay income tax only to your home state on wages earned in another state. Instead of filing two state returns and calculating credits, you file a withholding exemption form and handle everything through one state. Below is every active US state reciprocity agreement, the key form for each, and links to our detailed guides for the most common cross-border commuter corridors.

● 2026 tax year ● All agreements listed ● Forms included

The full list

Which states have reciprocity agreements?

The following table lists states that participate in reciprocity agreements. If you live in a state in the "Resident of" column and work in the corresponding "Work in" state, you can claim exemption from the work state's withholding. Always verify current status with the relevant state revenue department before filing.

Work inHas reciprocity with residents ofExemption form
DCAll states (DC does not tax nonresidents)D-4A
IllinoisIowa, Kentucky, Michigan, WisconsinIL-W-5-NR
IndianaKentucky, Michigan, Ohio, Pennsylvania, WisconsinWH-47
IowaIllinoisIA 44-016
KentuckyIllinois, Indiana, Michigan, Ohio, Virginia, West Virginia, WisconsinK-4 (exemption)
MarylandDC, Pennsylvania, Virginia, West VirginiaMW507
MichiganIllinois, Indiana, Kentucky, Minnesota, Ohio, WisconsinMI-W4
MinnesotaMichigan, North DakotaMN reciprocity form
MontanaNorth DakotaMT reciprocity form
New JerseyPennsylvaniaNJ-165
North DakotaMinnesota, MontanaND reciprocity form
OhioIndiana, Kentucky, Michigan, Pennsylvania, West VirginiaIT 4
PennsylvaniaIndiana, Maryland, New Jersey, Ohio, Virginia, West VirginiaREV-419
VirginiaDC, Kentucky, Maryland, Pennsylvania, West VirginiaVA-4
West VirginiaKentucky, Maryland, Ohio, Pennsylvania, VirginiaWV IT-104
WisconsinIllinois, Indiana, Kentucky, MichiganW-220

Wisconsin-Minnesota reciprocity was terminated in 2010 and later reinstated. Verify current status with MN DOR or WI DOR. Form numbers may change — check each state's website for the current version.

Which major commuter corridors have NO reciprocity?

Several of the busiest cross-border corridors lack reciprocity, requiring dual filing with a credit:

How do I use reciprocity — what are the steps?

The process is the same regardless of which states are involved:

  1. Confirm your states have an active reciprocity agreement by checking both states' department of revenue websites.
  2. File the appropriate withholding exemption form (listed in the table above) with your employer in the work state.
  3. Your employer switches withholding from the work state to your home state.
  4. At year-end, file only your home state resident return. No nonresident return is needed in the work state for wage income.

If your employer already withheld the wrong state's tax before you filed the exemption form, file a nonresident return in the work state to claim a refund. Then file your home state return and pay any shortfall.

States with no income tax — a different situation

Nine states do not levy a state income tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. These states do not need reciprocity agreements because they do not tax wages at all. If you live in one of these states and work in a taxing state, you pay only the work state's tax. If you live in a taxing state and work in one of these states, you pay only your home state's tax. See our guides for specific pairings: CA-NV, OR-WA, TX-LA.

Detailed guides for every major state pair

We have dedicated guides for the most-searched cross-border tax scenarios:

No reciprocity (dual filing required)

Reciprocity in effect

DC (nonresident exemption)

No-income-tax state involved

Special cases

What does a reciprocity agreement NOT cover?

Reciprocity covers only W-2 employee compensation: wages, salaries, tips and commissions. It does NOT cover:

  • Self-employment / freelance income
  • Rental income from property in another state
  • Partnership or S-corporation distributions
  • Gambling winnings
  • Interest, dividends or capital gains
  • Local/municipal taxes (Ohio municipal tax, Kentucky occupational tax, etc.)

If you have non-wage income from another state, you may still need to file a nonresident return even with reciprocity in place for your wages.

Questions

State reciprocity FAQ

What is a state tax reciprocity agreement?

A reciprocity agreement is a pact between two states that allows residents of each state to pay income tax only to their home state on wages earned in the other state. Without reciprocity, you would need to file a nonresident return in your work state and a resident return in your home state, then claim a credit to avoid double taxation. Reciprocity eliminates the nonresident filing for wage income.

How many states have reciprocity agreements?

Approximately 16 states plus the District of Columbia participate in reciprocity agreements. DC is unique because it does not tax nonresidents at all, which functions similarly to reciprocity but is broader. The states with the most reciprocal partners include Kentucky (7 states), Ohio (5 states) and Virginia (5 states plus DC).

Does reciprocity cover all types of income?

No. Reciprocity agreements typically cover only wages, salaries, tips and commissions — employee compensation reported on a W-2. They do not cover self-employment income, rental income, partnership distributions, investment income or gambling winnings. Non-wage income from another state may still require a nonresident filing.

What if my state does not have a reciprocity agreement with my work state?

Without reciprocity, you file a nonresident return in your work state and a resident return in your home state. Your home state typically grants a credit for taxes paid to the work state on the same income, preventing double taxation. You pay the higher of the two states' rates, not the sum of both.

Can reciprocity agreements be terminated?

Yes. Reciprocity agreements are voluntary arrangements between states and can be terminated by either party. Minnesota terminated its agreement with Wisconsin effective January 1, 2010 (a new agreement was later enacted). Always verify the current status of any reciprocity agreement with the relevant state department of revenue before relying on it for tax filing.

Mustafa Bilgic
Reviewed & maintained by
Mustafa Bilgic — Editor, SalaryCalculator.us

Reciprocity data compiled from individual state department of revenue publications.

  • Sources: Individual state departments of revenue · IRS Publication 505 · Federation of Tax Administrators (FTA).
  • 🔄 Last updated July 31, 2026 · Tax year 2026

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