Live in Pennsylvania, work in Delaware
Without wage reciprocity, the work state may tax wages earned there. Your home state generally offers a limited credit for eligible tax paid on the same income. Filing requirements, credit limits and local taxes need a separate check.
Official tax guidance for both states
Check withholding, filing requirements and current forms with each state's tax agency.
- Pennsylvania: Department of Revenue (opens in new tab)
- Delaware: Department of Finance - Division 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 Pennsylvania, ordinary employee wages and all workdays physically in Delaware. 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.
State income tax: $5,259 a year
Modeled annual state income tax for living in Pennsylvania and working in Delaware: about $5,259 on $100,000 of wages, $2,189 more than if you worked in Pennsylvania.
Without wage reciprocity, the work state may tax wages earned there. Your home state generally offers a limited credit for eligible tax paid on the same income. Filing requirements, credit limits and local taxes need a separate check.
Tax guide and official sources: live in Pennsylvania, work in Delaware
Official agency starting points: Pennsylvania tax agency (opens in new tab) · Delaware 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.
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.
| Step | Delaware work state | Pennsylvania home state |
|---|---|---|
| Tax before the modeled other-state credit | $5,259 | $3,070 |
| Modeled other-state credit subtracted | $0 | $3,070 |
| Tax after that credit | $5,259 | $0 |
Total: $5,259 + $0 = $5,259 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.
The modeled credit is applied in Pennsylvania, the home state. Actual eligibility and credit limits require the state instructions. 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 DE | To PA | Modeled total | If you worked in PA |
|---|---|---|---|---|
| $50,000 | $2,098 | $0 | $2,098 | $1,535 |
| $75,000 | $3,609 | $0 | $3,609 | $2,303 |
| $100,000 | $5,259 | $0 | $5,259 | $3,070 |
| $150,000 | $8,559 | $0 | $8,559 | $4,605 |
| $250,000 | $15,159 | $0 | $15,159 | $7,675 |
Single filer, all wages earned in Delaware, 2026 state tax rules, standard deductions. Local income taxes not included.
From paycheck withholding to your returns
- Withholding: Delaware payroll generally withholds on Delaware-source wages. Pennsylvania resident withholding or estimates may still be needed, after considering the eligible credit.
- Returns: Prepare Delaware PIT-NON, then Pennsylvania PA-40 with Schedule G-L for eligible Delaware tax on the same income. Retain the Delaware return for the credit claim.
- Credit or refund: Pennsylvania caps its credit at Pennsylvania tax on eligible overlapping income. Excess Delaware tax is not refunded by Pennsylvania; credit eligibility also depends on income sourcing and classification.
Worked example: $100,000 of wages
Single filer, full-year resident of Pennsylvania, all work performed in Delaware, no other income, standard deductions and modeled personal exemptions. Before credit, Pennsylvania tax is $3,070. Modeled Pennsylvania credit: $3,070. Pay $5,259 to Delaware and $0 to Pennsylvania, modeled total $5,259.
Annual liability, not paycheck withholding or a refund estimate. Federal tax, payroll programs, other local taxes, special credits and part-year residency are excluded. Local income taxes not included.
Remote-work and local exceptions
Do not assume every Pennsylvania home-working day is exempt from Delaware tax. Follow Delaware’s sourcing and employer-allocation guidance and keep work-location records. This example assigns all wages to Delaware and excludes Wilmington wage tax and Pennsylvania local taxes.
Official forms and instructions
- Delaware nonresident filing and withholding FAQ (opens in new tab)
- Delaware employer withholding and allocation rules (opens in new tab)
- Delaware PIT-NON and current instructions (opens in new tab)
- Pennsylvania credit eligibility and Schedule G-L (opens in new tab)
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 Delaware employer
Delaware has a "convenience of the employer" rule. Full rule: days worked at home for convenience by nonresidents of DE-based employers count as DE workdays.
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.
- Delaware: Wilmington levies a 1.25% earned income tax on residents and on nonresidents working in the city - relevant for PA, NJ, MD commuters.
Frequently asked questions
Do I pay Delaware income tax if I live in Pennsylvania?
Yes. Delaware taxes wages earned there by nonresidents. On $100,000 that's about $5,259.
Do I have to file taxes in both Pennsylvania and Delaware?
Prepare Delaware PIT-NON, then Pennsylvania PA-40 with Schedule G-L for eligible Delaware tax on the same income. Retain the Delaware return for the credit claim.
Will I be taxed twice?
The modeled state credit reduces overlap on eligible wages; separate local taxes or sourcing differences can still leave additional tax. Pennsylvania credits the tax you pay Delaware, so your total is about $5,259 on $100,000, compared with $3,070 if you also worked in Pennsylvania. Local city or county taxes may still apply.
Related
- Live in Delaware, work in Pennsylvania
- Moving from Pennsylvania to Delaware
- Moving from Delaware to Pennsylvania
- Live in Pennsylvania, work in Maryland
- Live in Pennsylvania, work in New Jersey
- Live in Pennsylvania, work in New York
- Live in Pennsylvania, work in Ohio
- Live in Pennsylvania, 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.