Reciprocal Withholding Agreements Between States                                          
   
Jurisdiction Reciprocal State Reciprocity State Links  

Alabama

None

Alabama does not have reciprocal withholding agreements with any other state.
 
http://www.revenue.alabama.gov/
 

Arizona

CA, DC, IN, OR, VA

Arizona has reciprocal taxation agreements with California, the District of Columbia, Indiana, Oregon, and Virginia. Residents of any of these states who work in Arizona can request an exemption from income tax withholding in Arizona by filing Form WEC, Withholding Exemption Certificate.
 
http://www.revenue.state.az.us/
 

Arkansas
 
Special border city exemptions apply for residents of Texarkana, Arkansas and Texarkana, Texas. Texarkana, Arkansas residents are exempt from Arkansas income tax and withholding; however, they must file an income tax return and provide their employers with Form AR-TX in order to certify their residency and exemption from tax withholding.
Texarkana, Texas residents are exempt from Arkansas income tax and withholding on wages earned in Texarkana, Arkansas but must pay Arkansas tax on wages earned in other parts of Arkansas. Other Texas residents are liable for taxes on all wages earned in any part of Arkansas.

Employer must supply Form AR-4EC(TX).
 
http://www.state.ar.us/dfa/
 
California
None

If a California resident's wages are subject to withholding in both California and another state, the employer must withhold the amount of California personal income tax that exceeds the amount required to be withheld by the other state.

California has no specific reciprocal taxation agreements with other states, but residents of Arizona, Guam, Indiana, Oregon, and Virginia are allowed a credit toward their California income tax liability for taxes paid to their home states.
 
http://www.edd.ca.gov/Payroll_Taxes/
 

Colorado

None

A Colorado resident employee who works in another state, the District of Columbia or a territory or possession of the United States, can be excused from Colorado withholding on wages from which income tax is withheld for the other jurisdiction.
 
http://www.revenue.state.co.us/main/home.asp
 

Connecticut

None

Currently, no agreements are in effect. An employer, however, can be doing business in more than one state and can, therefore, be required to withhold income tax for more than one state.

Tax credits are allowed against taxes imposed by another state or income derived from that state and which is also subject to Connecticut's income tax.
 
http://www.ct.gov/drs/site/default.asp
 

Delaware

None

Delaware does not have reciprocal withholding agreements with any other state.
 
http://revenue.delaware.gov/
 

District of Columbia

MD, VA

A reciprocal agreement is in effect with Maryland and Virginia. Nonresident employees of DC are not subject to DC withholding and must file Form D-4A, Certificate of Non-Residence in the District of Columbia.
 
http://otr.cfo.dc.gov/
 

Georgia

None

Georgia does not have reciprocal withholding agreements with any other state.
 
http://www.etax.dor.ga.gov/
 

Hawaii

None

Hawaii requires employers to withhold state income tax from the wages of residents working in other states, even if the other state also requires income tax withholding on the same wages. Residents, however, may receive credit against their Hawaii income tax for income taxes paid to another state.
 
http://www.state.hi.us/tax/tax.html
 

Idaho

None

Nonresidents and part-year residents who are liable for income taxes in their states of residence for income earned in Idaho and subject to Idaho withholding are not allowed a tax credit for the taxes paid to the states where they reside.
 
http://tax.idaho.gov/i-1026.cfm
 

Illinois

IA, KY, MI, WI

Under reciprocal agreements between Illinois and the states of Iowa, Kentucky, Michigan, and Wisconsin, compensation earned in Illinois by residents of those states is exempt from Illinois withholding. To claim the exemption, the employees must file Form IL-W-5NR, Employee's Statement of Nonresidence in Illinois, to certify residence in one of the covered states. Exempt employees who move out of the reciprocal state must notify the employer within 10 days and file Form IL-W-5, Certificate of Residence in Illinois, if applicable.
 
http://www.revenue.state.il.us 
 

Indiana

KY, MI, OH, PA, WI

Reciprocal agreements with Kentucky, Michigan, Ohio, Pennsylvania, and Wisconsin provide that Indiana employers need not withhold Indiana tax from wages paid to employees who reside in these states, but employers are urged to withhold the appropriate tax applicable to the employees' state of legal residence. Form WH-47, Certificate of Residence, certifying the employees' state of legal residence, must be submitted to Indiana employers. Residents of Arizona, California, Oregon, and the District of Columbia, working in Indiana, are allowed a credit (taken on their nonresident returns) toward Indiana income tax liability for the taxes paid to their home state.

State reciprocity agreements do not apply to county withholding rates; each county must negotiate reciprocal agreements with the taxing authority of any local government of an outside state. The Revenue Department will periodically advise employers of counties having approved agreements.
 
http://www.in.gov/dor/
 

Iowa

IL

Iowa has signed a reciprocal withholding agreement with Illinois that provides for withholding from wages for the employee's state of residence only. Iowa employers withhold Illinois income tax from wages earned in Iowa by employees who are residents of Illinois; Illinois employers withhold Iowa tax from Illinois wages earned by Iowa residents. Illinois residents must provide their Iowa employers with Form 44-016, Employee's Statement of Nonresidence in Iowa, to verify exemption from Iowa withholding and ensure that Illinois tax is withheld. Illinois employers that employ residents of Iowa must file Illinois Form IL-W-5NR, Employee's Statement of Nonresidence in Illinois, with the Iowa Department of Revenue for each Iowa employee who claims exemption from Illinois withholding.
 
http://www.state.ia.us/government/drf/
 

Kansas

None

Kansas does not have reciprocal withholding agreements with any other state.
 
http://www.ksrevenue.org/
 

Kentucky

IL, IN, MI, OH, WV WI

Under reciprocal tax agreements, residents of certain states who work in Kentucky are not subject to withholding of Kentucky income tax if these states grant an exemption from the withholding of their income tax to Kentucky residents who earn income in these states. Kentucky has entered into such agreements with Illinois, Indiana, Michigan, West Virginia, and Wisconsin. In addition, employees who reside in Virginia and commute daily to employment in Kentucky, or who reside in Kentucky and work daily in Virginia, are not subject to Kentucky withholding.

Workers exempt under a reciprocal agreement must complete Form 42A809, Certificate of Nonresidence, which must be kept on file by the employer.
 
http://revenue.ky.gov/
 

Louisiana

None

Louisiana does not have reciprocal withholding agreements with any other state.
 
http://www.rev.state.la.us/
 

Maine

None

Maine does not have reciprocal withholding agreements with any other state.
 
http://www.maine.gov/revenue/
 

Maryland

DC, PA, VA, WV

The residents of the District of Columbia, Pennsylvania, Virginia, and West Virginia are exempt from withholding of Maryland tax. Employers must retain copies of Form MW-507, Employee Exemption Certificate, in which the employees certify that they reside in a reciprocal state listed on the form.
 
http://www.comp.state.md.us/
 

Massachusetts

None

In the case of a legal resident of Massachusetts who is subject to withholding in some other jurisdiction, the employer withholds the Massachusetts tax for the pay period less the amount required to be withheld under the laws of the other jurisdiction.
 
http://www.mass.gov/dor/
 

Michigan

IL, IN, KY, MN, OH, WI

Michigan has reciprocal agreements with Illinois, Indiana, Kentucky, Minnesota, Ohio and Wisconsin. Michigan employers are not required to withhold Michigan income tax from compensation earned in Michigan by residents of those states.

Michigan residents working in the covered states are not subject to withholding for those states but can have Michigan tax withheld. Employers in reciprocal states can voluntarily register with the Michigan Department of Treasury to withhold Michigan income tax from Michigan residents who work in their states.

To establish exemption from withholding, employees must file nonresidency certificates with their employers. There is no state-issued certificate. Employers must create their own forms or obtain letters from employees showing the employee's name, Social Security number and legal address.
 
http://www.michigan.gov/taxes
 

Minnesota

MI, ND 

Minnesota has agreements with Michigan and North Dakota. Minnesota residents working in those states are exempt from income tax liability and tax filing requirements in those states. Residents of the reciprocating states have the same exemptions on compensation earned in Minnesota; the affected employees pay state tax only to the state where they live. To be eligible, nonresident employees must file Form MW-R, Reciprocity Exemption from Minnesota Withholding, Affidavit of Residency, to certify that they are eligible for a tax credit for income taxes that will be paid to their state of residence. The employee must give this form to the employer each year by Feb. 28; the employer must file copies of the MW-R with the Department of Revenue by March 31 each year, or within 30 days after a new employee or an employee whose address changes provides the form.
 
http://www.revenue.state.mn.us/
 

Mississippi

None

Mississippi does not have reciprocal withholding agreements with any other state.
 
http://www.dor.ms.gov/
 

Missouri

None

Missouri does not have reciprocal withholding agreements with any other state.
 
http://www.dor.mo.gov/
 

Montana

ND

Under a reciprocal agreement with North Dakota, Montana employers are not required to withhold Montana income tax from compensation paid to an employee who is a resident of North Dakota. North Dakota employers do not withhold from wages earned in North Dakota by Montana residents.

Employees claiming this exemption must provide Form NR-2, Employee's Certificate of North Dakota Residence, to the employer each year. The employer sends a copy of the certificate to the Revenue Department with the next quarterly report.

If the department determines that the employee's Form NR-2 is false or unsubstantiated, it may require the employer to resume withholding and collect past due withholding from the worker's current wages.
 
http://revenue.mt.gov/
 

Nebraska

None

Nebraska does not have reciprocal withholding agreements with any other state.
 
http://www.revenue.state.ne.us/index.html
 

New Jersey

PA

Pennsylvania residents employed in New Jersey are not subject to New Jersey withholding.

Under the agreement with Pennsylvania, New Jersey does not require withholding from wages, salaries and other compensation paid to Pennsylvania residents, provided Form 165, Employee's Certificate of Nonresidence in New Jersey, is filed with the employer. The certificate is retained by the employer and one copy is sent to the New Jersey Division of Taxation. If a certificate is not filed, the employer must withhold tax in the same manner as from any other employee.

The Pennsylvania resident will continue to be liable for Pennsylvania income taxes. Therefore, if a Pennsylvania resident files a Certificate of Non-Residence, the New Jersey employer may wish to register with the Pennsylvania Department of Revenue to withhold Pennsylvania income tax from the employee's wages.

If a New Jersey resident is working in Philadelphia, there would be no withholding of New Jersey income tax if: the Philadelphia Wage Tax is withheld from the employee's wages, the Philadelphia Wage Tax is greater than the New Jersey income tax that would be
required, and the person is solely employed within the city of Philadelphia.
 
http://www.revenue.state.pa.us/
 

New Mexico

None

New Mexico does not have reciprocal withholding agreements with any other state.
 
http://www.tax.newmexico.gov/
 

New York

None

New York does not have reciprocal withholding agreements with any other state.
 
http://www.tax.ny.gov/
 

North Carolina

None

North Carolina does not have reciprocal withholding agreements with any other state.
 
http://www.dor.state.nc.us/
 

North Dakota

MI, MT

Income tax reciprocity agreements between North Dakota and the states of Minnesota and Montana allow qualified Minnesota and Montana residents to claim exemption from North Dakota income tax. To receive such exemption, the employee must file Form NDW-R, Reciprocity Exemption From Withholding for Qualifying Minnesota and Montana Residents Working in North Dakota, for each year the exemption is claimed.
 
http://www.nd.gov/tax/
 

Ohio

IN, KY, MI, PA, WV

Under reciprocal withholding agreements between Ohio and Indiana, Kentucky, Michigan, Pennsylvania, and West Virginia, Ohio employers are not required to withhold from wages earned in Ohio by residents of those states. In similar fashion, those states grant the same tax immunity on wages earned in those states by Ohio residents. The agreements insure that workers will owe tax only to their own state of residence.

Form IT-4NR, Employers Statement of Residency in a Reciprocal State, must be filed with the employer to claim the exemption.
 
http://tax.ohio.gov/
 

Oklahoma

None

Oklahoma has no reciprocal agreements with other states.
 
http://www.oktax.state.ok.us/
 

Oregon

None

The state of California allows Oregon residents who perform services in California to take a credit toward their California income tax liability for taxes paid to their home state.
 
http://www.oregon.gov/DOR/
 

Pennsylvania

IN, MD, NJ, OH, VA, WV

Pennsylvania has reciprocal withholding agreements with Indiana, Maryland, New Jersey, Ohio, Virginia and West Virginia.

If a nonresident employee from one of these states earns compensation within Pennsylvania, no withholding of Pennsylvania personal income tax is required. The nonresident employee must file Form REV-420, Employee's Statement of Nonresidence in Pennsylvania and Authorization to Withhold Other States' Income Tax.

Pennsylvania employers should register with these states in order to withhold tax of the employee's home state. Out-of-state employers should register to withhold Pennsylvania tax from Pennsylvania employees.
 
http://www.revenue.state.pa.us/
 

Puerto Rico

None

No Provision
 
http://www.hacienda.gobierno.pr/
 

Rhode Island

None

The Tax Administrator is authorized to enter into reciprocal agreements with other states that require withholding from wage payments, provided the other state allows similar treatment to Rhode Island residents. The agreements can govern amounts to be withheld and also can relieve employers from withholding income tax on wages paid to nonresident employees.
 
http://www.tax.state.ri.us/
 

South Carolina

None

Income of South Carolina residents earned in other states and subject to withholding in those states is exempt from South Carolina withholding provided the employer actually withholds tax for such other state. An employer with employees who are legal residents of South Carolina and who earn income both in and out of the state must withhold on all income not subject to withholding for another state.
 
http://www.sctax.org/default.htm
 

Utah

None

Utah has no reciprocity agreements with other states.
 
http://tax.utah.gov/
 

Vermont

None

Vermont has no reciprocity agreements with other states.
 
http://www.state.vt.us/tax/
 

Virginia

DC, KY, MD, PA, WV

The Tax Commissioner has relieved Virginia employers from the withholding requirements for certain nonresident employees who reside in the District of Columbia, Kentucky, Maryland, Pennsylvania, or West Virginia, and who commute daily to work in Virginia and receive wages for services performed in Virginia for an employer within the geographical limits of Virginia. Such employees should indicate their exempt status on Form VA-4, Personal Exemption Worksheet.

If an exempt employee moves to Virginia during the calendar year or loses status as a commuter on a daily basis from any of the above jurisdictions to the place of employment in Virginia, the employee must notify the employer within 10 days after the change of status. The Virginia employer must withhold the full amount of Virginia income tax from the wages starting with the first wages paid to the employee after notification of the status change.
 
http://www.tax.virginia.gov/
     

West Virginia

KY, MD, OH, PA, VA

West Virginia has reciprocal withholding agreements with Kentucky, Maryland, Ohio, Pennsylvania, and Virginia. People who live in those states and are employed in West Virginia or by West Virginia firms are exempt from West Virginia withholding taxes on wages and salaries earned in the state. To claim the exemption, employees must fill out the Certificate of Nonresidence in Form WV/IT-104, Employee's Withholding Exemption Certificate. The form must be retained by the employer. If Form WV/IT-104 is not properly executed by an employee who is a resident of those states, the employer must continue to deduct and withhold West Virginia income tax.
 
http://www.wva.state.wv.us/wvtax/
 

Wisconsin

IL, IN, KY, MI

Wisconsin has reciprocal withholding agreements with Illinois, Indiana, Kentucky, and Michigan.

A nonresident employee covered by a reciprocal agreement must provide a written statement certifying place of residence to relieve the employer from withholding Wisconsin income taxes from the employee's wages. Form W-220, Nonresident Employee's Withholding Reciprocity Declaration, may be used for this purpose.

Wisconsin employers who employ Minnesota residents inside Wisconsin must withhold Wisconsin income taxes from these employees. Minnesota residents should fill out Form WT-4, Wisconsin Withholding Exemption Certificate.
 
http://www.dor.state.wi.us/