2026 tax year · cross-border wages
Crossing a state line into or out of Pennsylvania
Pennsylvania taxes its residents on income earned anywhere, and taxes non-residents on work done inside it. Which return you file depends on which direction you commute.
Pennsylvania borders 8 states. They fall into 2 different situations, and which one applies decides whether you file one return or two.
Where Pennsylvania has a reciprocity agreement
Pennsylvania has wage reciprocity with Indiana, Maryland, New Jersey, Ohio, Virginia and West Virginia. Work in one of these and it will not tax your wages at all: you file its exemption certificate with your employer there, which stops its withholding, and report everything to Pennsylvania. There is no nonresident return.
| Work state | Exemption certificate | Its tax on your wages |
|---|---|---|
| Indiana | WH-47 | $0 |
| Maryland | MW507 | $0 |
| New Jersey | NJ-165 | $0 |
| Ohio | IT 4NR | $0 |
| Virginia | VA-4 | $0 |
| West Virginia | WV/IT-104R | $0 |
Reciprocity covers wages paid by an employer. It does not cover self-employment income, so a 1099 worker in Pennsylvania generally still sources income to where the work was done.
Where you file a nonresident return and claim a credit
Pennsylvania has no agreement with Delaware and New York. Work in one of these and you file a nonresident return there, report the same income again to Pennsylvania, and claim a credit for what you already paid. The credit is capped at your Pennsylvania liability, so you are not taxed twice, the combined bill lands at roughly the higher of the two rates. On $70,000, New York costs the most at $3,665 and Delaware the least at $3,586, $79 between them.
| Work state | Its tax | Pennsylvania after credit | Total | Rate that governs |
|---|---|---|---|---|
| Delaware | $3,586 | $0 | $3,586 | Delaware |
| New York | $3,665 | $0 | $3,665 | New York |
What Pennsylvania itself takes across a salary range
A single filer, taking the standard deduction. This is the figure every arrangement above is measured against, the tax Pennsylvania charges a resident, whether the work happened inside the state or over a line:
| Wages | Pennsylvania tax | Effective rate |
|---|---|---|
| $45,000 | $1,382 | 3.07% |
| $70,000 | $2,149 | 3.07% |
| $120,000 | $3,684 | 3.07% |
What Pennsylvania charges as your home state
Pennsylvania applies a single 3.07% rate to taxable income for 2026, so every extra dollar of wages is taxed at the same state rate.
Pennsylvania also has local income tax that the estimate above does not model, many municipalities levy earned income tax. Philadelphia: 3.75% resident.. Add it separately for where you live and work.
State income tax on wages only, 2026 rates. Not tax advice, what this does and doesn't cover.