Reciprocity state pair

Live in Maryland, work in Pennsylvania

Reciprocity agreement: covered employee wages are subject to state income tax only in your home state. Give your employer the work state's exemption form and arrange home-state withholding. County and city taxes require a separate check.

By Abu HasnatPage updated Nov 7, 2026Data: Maryland and Pennsylvania revenue departments (methodology)

Official tax guidance for both states

Check withholding, filing requirements and current forms with each state's tax agency.

Maryland: Comptroller of Maryland - Information for Business Taxpayers (opens in new tab)
Pennsylvania: Department of Revenue (opens in new tab)

Agency directory checked 2026-10-01 against the IRS state-government directory. This verifies the agency links, not an individual tax result. Use forms for the year you are filing.

Before you use this estimate

This model assumes a full-year resident of Maryland, ordinary employee wages and all workdays physically in Pennsylvania. Check exemption eligibility before treating a work-state amount of $0 as your own result. Withholding is a prepayment, not final tax liability. Other income, a move during the year, remote work and separate local taxes or credits can change the result.

Wage-exemption conditions: Covered employee compensation of an eligible MD resident is exempt from Pennsylvania state income tax under reciprocity. For payroll nonwithholding, give each employer REV-419 and confirm the employer agrees to withhold and remit home-state income tax. The specific REV-419 instructions do not require reciprocal-state residents to refile annually unless their residence state changes. Pennsylvania municipal wage taxes require a separate workplace check.

This pair's wage-exemption or credit guidance checked 2026-11-02. Individual return calculations and other source dates are separate.

I live inI work inAnnual wages ($)Filing status

State income tax: $7,283 a year

Modeled annual state income tax for living in Maryland and working in Pennsylvania: about $7,283 on $100,000 of wages.

Maryland low-income limits: this schedule estimate does not apply Maryland's minimum-filing relief or poverty-level credit. A low-income worker may owe less or no Maryland tax. Check the official filing requirements (opens in new tab) and Form MW507 exemption instructions (opens in new tab) for your circumstances and filing year.

Conditions for this pair: Covered employee compensation of an eligible MD resident is exempt from Pennsylvania state income tax under reciprocity. For payroll nonwithholding, give each employer REV-419 and confirm the employer agrees to withhold and remit home-state income tax. The specific REV-419 instructions do not require reciprocal-state residents to refile annually unless their residence state changes. Pennsylvania municipal wage taxes require a separate workplace check.

Official guidance (www.pa.gov) (opens in new tab) · Official guidance (www.pa.gov) (opens in new tab)

Tax guide and official sources: live in Maryland, work in Pennsylvania

Official agency starting points: Maryland tax agency (opens in new tab) · Pennsylvania tax agency (opens in new tab). These directory links identify the selected states' agencies, not your filing obligations. Check their individual-tax guidance and forms for the year you are filing.

Tax to Pennsylvania

nonresident

Tax to Maryland

$7,283

resident

Total state tax

$7,283

Typical state returns

This is the usual filing pattern, not a determination that you must file. Filing thresholds, age or dependent status, other income and withholding refunds can change which returns you need.

How this $100,000 estimate adds up

These steps follow the selected home, work state, salary and filing status. They reconcile the model's annual liability, not the amounts withheld from your paycheck.

Modeled state income tax for Maryland residence and Pennsylvania work
Step	Pennsylvania work state	Maryland home state
Tax before the modeled other-state credit	$0	$7,283
Modeled other-state credit subtracted	$0	$0
Tax after that credit	$0	$7,283

Total: $0 + $7,283 = $7,283 a year. Amounts are rounded for display. Work-state wage exemptions, when applicable, are already reflected in the first row; they are not an other-state credit.

No other-state credit is subtracted in this selected scenario. Included county components stay in these amounts; excluded local taxes and credits stay excluded. Federal income tax, payroll programs and refund eligibility are outside this reconciliation.

State tax at different salaries

Wages	To PA	To MD	Modeled 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.

From paycheck withholding to your returns

Withholding: Give Pennsylvania payroll Form REV-419 for covered employee compensation. Arrange Maryland withholding or estimated payments separately; the certificate does not settle your annual liability.
Returns: File Maryland Form 502, including applicable county tax. A Pennsylvania PA-40 may be needed to recover Pennsylvania state tax withheld in error or report other Pennsylvania-source income.
Credit or refund: Reciprocity exempts covered wages from Pennsylvania state income tax. Seek a refund of erroneous Pennsylvania withholding rather than claiming it as an eligible Maryland credit.

Worked example: $100,000 of wages

Single filer, full-year resident of Maryland, all work performed in Pennsylvania, no other income, standard deductions and modeled personal exemptions. Covered wages are exempt from Pennsylvania state income tax under wage reciprocity. Pay a modeled $7,283 to Maryland, total $7,283. This exemption is not an other-state tax credit.

Annual liability, not paycheck withholding or a refund estimate. Federal tax, payroll programs, other local taxes, special credits and part-year residency are excluded. State income tax includes Maryland's average county income tax. Other local income taxes are not included.

Remote-work and local exceptions

The example covers wages, not self-employment or other income. Maryland county tax uses an average, not your county rate. Pennsylvania local wage taxes are separate; reciprocity does not remove those taxes.

Official forms and instructions

Source audit 2026-10-01. Use the return and instructions for the year you are filing; a current-forms link may still show a prior-year return. Official sources checked; not independently reviewed.

What to do

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: Pennsylvania local Earned Income Tax (Act 32) is generally withheld at the higher of the resident rate or the work-location nonresident rate. Out-of-state employees owe the Pennsylvania worksite municipality's nonresident EIT rate and applicable Local Services Tax; a 0% Pennsylvania resident rate does not exempt their worksite wages. State wage reciprocity does not remove these separate local taxes. Philadelphia uses its separate Wage Tax: from July 1, 2026, 3.735% for residents and 3.425% for nonresidents on taxable work in the city. Check your actual home/work municipality and local credit rules; local taxes are not calculated here.
Maryland: All 23 counties and Baltimore City levy resident local income tax (about 2.25%–3.3%, on the state return). Nonreciprocal nonresidents generally pay the 2.25% special nonresident tax instead of resident county tax; some home jurisdictions require Form 515. Pennsylvania reciprocal wages are exempt from Maryland state tax, but Maryland local tax may still apply. MW507 line 5 covers the Pennsylvania state exemption; lines 6 and 7 cover separate local exemptions. Form 515 may be required, depending on the Pennsylvania home jurisdiction and Maryland work county. Reciprocity is not a blanket local-tax exemption.

Frequently asked questions

Do I pay Pennsylvania income tax if I live in Maryland?

If you qualify for the wage-reciprocity exemption, no Pennsylvania state income tax on covered employee wages: under reciprocity Maryland taxes them. City and county taxes require a separate check. Covered employee compensation of an eligible MD resident is exempt from Pennsylvania state income tax under reciprocity. For payroll nonwithholding, give each employer REV-419 and confirm the employer agrees to withhold and remit home-state income tax. The specific REV-419 instructions do not require reciprocal-state residents to refile annually unless their residence state changes. Pennsylvania municipal wage taxes require a separate workplace check.

Do I have to file taxes in both Maryland and Pennsylvania?

File Maryland Form 502, including applicable county tax. A Pennsylvania PA-40 may be needed to recover Pennsylvania state tax withheld in error or report other Pennsylvania-source income.

Will I be taxed twice?

Not at the state level on covered wages: under reciprocity Maryland taxes them, about $7,283 on $100,000 in this model. The estimate includes resident county tax where modeled; other local taxes or credits are separate.

Rules reviewed 2026-09-24 from state revenue departments and the Tax Foundation. Estimates only; confirm with each state's revenue department.