The form
How do I file REV-419 with my Pennsylvania employer?
REV-419, titled "Employee's Nonwithholding Application Certificate," is the Pennsylvania form that tells your employer you are exempt from PA income tax withholding because you live in a reciprocal state. The process is simple:
- Download REV-419 from the Pennsylvania Department of Revenue website, or request a copy from your employer.
- Fill in your name, address and Social Security number. Check the box indicating you are a resident of New Jersey.
- Sign and date the form, then hand it to your employer's payroll department.
- Verify your next paycheck to confirm that PA withholding has stopped and NJ withholding has begun.
If your employer uses a large payroll service, the change may take one or two pay periods to take effect. Follow up if you see PA withholding continuing after the expected switchover date.
What happens if PA tax was withheld before I filed REV-419?
If your employer withheld Pennsylvania income tax before you filed the reciprocity form, you have two paths to recover the money:
- Wait until year-end and file PA-40 as a nonresident showing zero PA-taxable wage income. Claim a refund of all PA withholding.
- Ask your employer if they can adjust withholding mid-year and refund the over-collected PA tax through payroll. Some employers can do this; others cannot.
In either case, file REV-419 immediately to stop further PA withholding. You will also need to ensure your NJ-1040 reflects the correct NJ withholding for the year — if NJ tax was under-withheld, you may owe a balance at filing time.
How does NJ's graduated tax compare to PA's flat rate for commuters?
Pennsylvania charges a single flat rate on all taxable income. New Jersey uses graduated brackets: you pay a lower rate on initial income and progressively higher rates as income climbs. For NJ residents working in PA, reciprocity means you pay NJ's graduated rates instead of PA's flat rate.
At lower to moderate incomes, this can be roughly neutral — NJ's starting bracket is comparable to PA's flat rate. At higher incomes, NJ's upper brackets rise well above PA's flat rate, which means you may pay more total state tax than you would if you were a PA resident paying the flat rate. The trade-off is filing simplicity: one state, one return, no credit calculations.
(Simplified illustration. Current NJ brackets at nj.gov/treasury.)
Does the reciprocity exemption apply to PA local earned income tax?
This is a common point of confusion. Pennsylvania municipalities levy a local earned income tax (EIT) on wages, and the rules can differ from the state-level reciprocity agreement. In general, the reciprocity agreement combined with PA Act 32 provisions means NJ residents are not subject to PA local EIT on wages earned in PA, but the application can vary by municipality. If your employer is withholding PA local tax, raise the issue with the local tax collector and provide your REV-419 and proof of NJ residency.
New Jersey does not impose any local or municipal income taxes, so you have no local tax layer on the NJ side.
What income types are NOT covered by reciprocity?
Just as with the reverse direction, the NJ-PA reciprocity covers only employee compensation: wages, salaries, tips and commissions. If you earn non-wage income sourced to Pennsylvania — such as rental income from PA property, business income from a PA sole proprietorship or partnership distributions from a PA-based partnership — you may still owe PA tax on that income and need to file PA-40 as a nonresident.
What about remote work — do I lose reciprocity if I work from NJ?
No. If you are employed by a PA company but work remotely from your New Jersey home, reciprocity still applies to your wages. In fact, remote work from NJ simplifies things further: since the work is physically performed in NJ, it is NJ-source income regardless. Whether you commute to PA or work from NJ, under reciprocity you owe tax only to New Jersey on your employee wages.
The complexity arises only if your employer fails to update withholding. Make sure REV-419 is on file even if you work from home — otherwise your employer may default to PA withholding based on the company's location.
For broader guidance on remote work across state lines, see our remote work two-state tax guide.
Questions
PA-NJ reciprocity FAQ
What is REV-419 and when do I file it?
REV-419 is Pennsylvania's Employee's Nonwithholding Application Certificate. New Jersey residents working for a PA employer file this form to request exemption from Pennsylvania income tax withholding. Submit it to your employer's payroll department at the start of employment or as soon as you establish NJ residency.
Will I pay more or less tax under NJ-PA reciprocity as a NJ resident?
It depends on your income level. New Jersey uses graduated brackets that start low but climb with income, while Pennsylvania has a flat rate. At lower incomes NJ's initial bracket can be comparable to or below PA's flat rate, making reciprocity neutral or slightly favorable. At higher incomes NJ's upper brackets exceed PA's flat rate, so you may pay more under reciprocity than you would under PA's flat tax alone — but reciprocity still simplifies your filing to a single state.
Do I owe Pennsylvania local earned income tax as a NJ commuter?
No. Pennsylvania's local earned income tax (EIT) applies to PA residents and to people who work within a PA municipality. As a NJ resident, the reciprocity agreement exempts your wages from PA state tax, but the local EIT question is governed by the municipality's own rules. Most PA localities tax both residents and nonresidents who work there, but the reciprocity agreement and PA law generally protect NJ residents from PA local EIT on wages. Confirm with the specific PA municipality's tax office.
Can I file REV-419 if I work for a staffing agency in PA?
Yes. The reciprocity exemption applies regardless of your employment arrangement — direct hire, staffing agency or temp agency — as long as you are a W-2 employee and a legal resident of New Jersey. Hand the completed REV-419 to whichever entity issues your paycheck.
What if I moved from PA to NJ mid-year?
You file as a part-year resident in both states. For the months you lived in PA, you file a PA-40 as a part-year resident reporting PA-period income. For the months you lived in NJ, you file NJ-1040 as a part-year resident. Once you become a NJ resident, file REV-419 with your PA employer to switch withholding going forward.
- Sources: PA Dept. of Revenue (REV-419 instructions, reciprocity) · NJ Division of Taxation (NJ-1040) · PA Act 32 (local EIT).
- 🔄 Last updated July 31, 2026 · Tax year 2026
← Back to the full salary calculator · Related: NJ to PA taxes · MD to VA taxes · PA salary calculator · NJ salary calculator · All reciprocity agreements · Annual salary calculator