Live in Kentucky, work in Virginia
Reciprocity agreement: you pay income tax only to your home state. Give your employer the work state's exemption form so it withholds for your home state instead.
State income tax: $3,382 a year
Living in Kentucky and working in Virginia, you'd pay about $3,382 in state income tax on $100,000 of wages.
Reciprocity agreement: you pay income tax only to your home state. Give your employer the work state's exemption form so it withholds for your home state instead.
State tax at different salaries
| Wages | To VA | To KY | Total | If you worked in KY |
|---|---|---|---|---|
| $50,000 | $0 | $1,632 | $1,632 | $1,632 |
| $75,000 | $0 | $2,507 | $2,507 | $2,507 |
| $100,000 | $0 | $3,382 | $3,382 | $3,382 |
| $150,000 | $0 | $5,132 | $5,132 | $5,132 |
| $250,000 | $0 | $8,632 | $8,632 | $8,632 |
Single filer, all wages earned in Virginia, 2026 state tax rules, standard deductions. Local income taxes not included.
What to do
- Reciprocity: KY residents who commute daily to VA and whose only VA-source income is wages are exempt from VA tax; file Form VA-4 (re-certify annually).
- Keep a record of the days you work in each state, especially if you sometimes work from home.
Local income taxes
- Kentucky: City/county occupational license taxes are levied by work location on residents and nonresidents alike (e.g., Louisville Metro ~2.2% combined, Lexington 2.25%), and are NOT covered by KY's state reciprocity agreements - OH/IN commuters into Louisville/Covington still pay them.
Special credit rules
- VA: Reverse-credit with AZ, CA, OR: residents of those states working in VA claim a credit on the VA nonresident return for tax paid to their home state (so VA, the work state, gives the credit). VA residents get no VA credit for tax paid to AZ, CA, or OR on income those states tax - they claim credit on those states' returns instead.
Frequently asked questions
Do I pay Virginia income tax if I live in Kentucky?
No. Under the reciprocity agreement you pay only Kentucky. KY residents who commute daily to VA and whose only VA-source income is wages are exempt from VA tax; file Form VA-4 (re-certify annually).
Do I have to file taxes in both Kentucky and Virginia?
Usually you file only one state return (a resident return in Kentucky), though some states still require a nonresident return to get a refund of any wrongly withheld tax.
Will I be taxed twice?
No. Under the reciprocity agreement only Kentucky taxes your wages: about $3,382 on $100,000.
Related
- Live in Virginia, work in Kentucky
- Moving from Kentucky to Virginia
- Moving from Virginia to Kentucky
- Live in Kentucky, work in Illinois
- Live in Kentucky, work in Indiana
- Live in Kentucky, work in Missouri
- Live in Kentucky, work in Ohio
- Live in Kentucky, work in Tennessee
- Live in Kentucky, work in West Virginia
Rules reviewed 2026-09-24 from state revenue departments and the Tax Foundation. Estimates only; confirm with each state's revenue department.