Reciprocity state pair

Live in New Jersey, 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: New Jersey and Pennsylvania revenue departments (methodology)

Official tax guidance for both states

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

New Jersey: Division of Taxation (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 New Jersey, 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 NJ 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: $4,180 a year

Modeled annual state income tax for living in New Jersey and working in Pennsylvania: about $4,180 on $100,000 of wages.

Conditions for this pair: Covered employee compensation of an eligible NJ 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 New Jersey, work in Pennsylvania

Official agency starting points: New Jersey 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 New Jersey

$4,180

resident

Total state tax

$4,180

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 New Jersey residence and Pennsylvania work
Step	Pennsylvania work state	New Jersey home state
Tax before the modeled other-state credit	$0	$4,180
Modeled other-state credit subtracted	$0	$0
Tax after that credit	$0	$4,180

Total: $0 + $4,180 = $4,180 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 NJ	Modeled total	If you worked in NJ
$50,000	$0	$1,215	$1,215	$1,215
$75,000	$0	$2,596	$2,596	$2,596
$100,000	$0	$4,180	$4,180	$4,180
$150,000	$0	$7,365	$7,365	$7,365
$250,000	$0	$13,735	$13,735	$13,735

Single filer, all wages earned in Pennsylvania, 2026 state tax rules, standard deductions. Local income taxes not included.

What to do

Reciprocity: Covered employee compensation of an eligible NJ 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.
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.
New Jersey: No local wage tax on employees (Newark's 1% payroll tax is employer-paid).

Special credit rules

NJ: New Jersey residents may also claim a credit for eligible income or wage taxes paid to cities and other local governments in Pennsylvania, in addition to other-state income tax. Check the New Jersey credit instructions and limits; local tax or credit amounts are not calculated here.

Frequently asked questions

Do I pay Pennsylvania income tax if I live in New Jersey?

If you qualify for the wage-reciprocity exemption, no Pennsylvania state income tax on covered employee wages: under reciprocity New Jersey taxes them. City and county taxes require a separate check. Covered employee compensation of an eligible NJ 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 New Jersey and Pennsylvania?

Usually you file only one state return (a resident return in New Jersey), though some states still require a nonresident return to get a refund of any wrongly withheld tax.

Will I be taxed twice?

Not at the state level on covered wages: under reciprocity New Jersey taxes them, about $4,180 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.