Live in New Jersey, 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: $4,180 a year
Living in New Jersey and working in Pennsylvania, you'd pay about $4,180 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 NJ | 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: NJ 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.
- New Jersey: No local wage tax on employees (Newark's 1% payroll tax is employer-paid).
Special credit rules
- NJ: New Jersey residents can also credit income or wage taxes paid to cities and other local governments in other states (for example, the Philadelphia Wage Tax) against New Jersey tax, not only other states' taxes.
Frequently asked questions
Do I pay Pennsylvania income tax if I live in New Jersey?
No. Under the reciprocity agreement you pay only New Jersey. NJ 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 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?
No. Under the reciprocity agreement only New Jersey taxes your wages: about $4,180 on $100,000.
Related
- Live in Pennsylvania, work in New Jersey
- Moving from New Jersey to Pennsylvania
- Moving from Pennsylvania to New Jersey
- Live in New Jersey, work in Delaware
- Live in New Jersey, work in New York
Rules reviewed 2026-09-24 from state revenue departments and the Tax Foundation. Estimates only; confirm with each state's revenue department.