What is a reciprocity agreement?
A reciprocal agreement allows residents of one state to work in a neighboring state while paying income taxes only to their home (resident) state. This means you may only need to file a resident state tax return, as long as you’ve claimed an exemption from withholding in the state where you work.
What if I don’t claim exempt?
If you don’t submit an exemption form in the nonresident state, your employer may withhold taxes for that state. In that case, you’ll likely need to file a nonresident return to request a refund of the taxes withheld.
States with Reciprocity Agreements
The following states have reciprocal tax agreements that allow you to file an exemption form to avoid withholding in the state where you work:
| If you live in: | and you work in: | file form: |
| Anywhere other than District of Columbia | District of Columbia | D-4A |
| Iowa, Kentucky, Michigan or Wisconsin | Illinois | IL-W-5-NR |
| Kentucky, Michigan, Ohio, Pennsylvania or Wisconsin | Indiana | WH-47 |
| Illinois | Iowa | 44-016 |
| Illinois, Indiana, Michigan, Ohio, Virginia or West Virginia | Kentucky | K-4 42A804 |
| District of Columbia, Pennsylvania, Virginia or West Virginia | Maryland | MW-507 |
| Illinois, Indiana, Kentucky, Minnesota, Ohio or Wisconsin | Michigan | MI-W4 |
| Michigan or North Dakota | Minnesota | MWR |
| North Dakota | Montana | MW-4 |
| Pennsylvania | New Jersey | NJ-165 |
| Minnesota or Montana | North Dakota | NDW-R |
| Indiana, Kentucky, Michigan, Pennsylvania or West Virginia | Ohio | IT-4NR |
| Indiana, Maryland, New Jersey, Ohio, Virginia, or West Virginia | Pennsylvania | REV-419 |
| District of Columbia, Kentucky, Maryland, Pennsylvania, or West Virginia | Virginia | VA-4 |
| Kentucky, Maryland, Ohio, Pennsylvania or Virginia | West Virginia | WV IT-104 |
| Illinois, Indiana, Kentucky or Michigan | Wisconsin | W-220 |