Live in Maryland, work in Pennsylvania
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: $7,283 a year
Living in Maryland and working in Pennsylvania, you'd pay about $7,283 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 PA | To MD | Total | If you worked in MD |
|---|---|---|---|---|
| $50,000 | $0 | $3,358 | $3,358 | $3,358 |
| $75,000 | $0 | $5,321 | $5,321 | $5,321 |
| $100,000 | $0 | $7,283 | $7,283 | $7,283 |
| $150,000 | $0 | $11,563 | $11,563 | $11,563 |
| $250,000 | $0 | $20,222 | $20,222 | $20,222 |
Single filer, all wages earned in Pennsylvania, 2026 state tax rules, standard deductions. State income tax includes Maryland's average county income tax. Other local income taxes are not included.
What to do
- Reciprocity: MD residents working in PA exempt from PA personal income tax on wages; file Form REV-419 (Employee's Nonwithholding Application Certificate). Philadelphia Wage Tax (nonresident rate) still applies to work performed in Philadelphia.
- Keep a record of the days you work in each state, especially if you sometimes work from home.
Working from home for a Pennsylvania employer
Pennsylvania has a "convenience of the employer" rule. Full rule: nonresidents working from home for convenience for a PA employer are taxed by PA. Residents of reciprocity states (IN, MD, NJ, OH, VA, WV) are not affected for wages.
Local income taxes
- Pennsylvania: Local Earned Income Tax (Act 32) in nearly every municipality/school district: withheld at the higher of the resident rate or the work-location nonresident rate (typically ~1-2%+). Philadelphia Wage Tax from July 1, 2026: 3.735% resident / 3.425% nonresident (on work performed in the city); Pittsburgh 3% resident EIT (school+city) plus $52/yr Local Services Tax at work location. Out-of-state residents are not subject to PA local EIT except Philadelphia (nonresident rate) and LST where applicable. NJ residents can credit Philadelphia wage tax against NJ tax.
- Maryland: All 23 counties + Baltimore City levy a resident local income tax (about 2.25%-3.3%, on the state return). Nonresidents working in MD (from non-reciprocity states such as DE) pay a special nonresident tax (2.25% for 2026, equal to the lowest county rate) in place of county tax. Residents of PA, VA, WV, DC covered by reciprocity owe neither.
Frequently asked questions
Do I pay Pennsylvania income tax if I live in Maryland?
No. Under the reciprocity agreement you pay only Maryland. MD residents working in PA exempt from PA personal income tax on wages; file Form REV-419 (Employee's Nonwithholding Application Certificate). Philadelphia Wage Tax (nonresident rate) still applies to work performed in Philadelphia.
Do I have to file taxes in both Maryland and Pennsylvania?
Usually you file only one state return (a resident return in Maryland), 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 Maryland taxes your wages: about $7,283 on $100,000.
Related
- Live in Pennsylvania, work in Maryland
- Moving from Maryland to Pennsylvania
- Moving from Pennsylvania to Maryland
- Live in Maryland, work in Washington, DC
- Live in Maryland, work in Delaware
- Live in Maryland, work in Virginia
- Live in Maryland, 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.