Live in Pennsylvania, work in Maryland
Covered wages are exempt from Maryland state income tax under reciprocity and are taxed by Pennsylvania. Maryland local tax can still apply, depending on your home jurisdiction and work county; it is not modeled. MW507 line 5 is the state exemption; lines 6 and 7 cover separate local exemptions, and Form 515 may be required.
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)
- Maryland: Comptroller of Maryland - Information for Business Taxpayers (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 Maryland. 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: PA residents who do not maintain a place of abode in MD for 183+ days are exempt from MD tax on wages; file Form MW507 with employer.
State income tax: $3,070 a year
Modeled annual state income tax for living in Pennsylvania and working in Maryland: about $3,070 on $100,000 of wages.
Covered wages are exempt from Maryland state income tax under reciprocity and are taxed by Pennsylvania. Maryland local tax can still apply, depending on your home jurisdiction and work county; it is not modeled. MW507 line 5 is the state exemption; lines 6 and 7 cover separate local exemptions, and Form 515 may be required.
Conditions for this pair: PA residents who do not maintain a place of abode in MD for 183+ days are exempt from MD tax on wages; file Form MW507 with employer.
Tax guide and official sources: live in Pennsylvania, work in Maryland
Official agency starting points: Pennsylvania tax agency (opens in new tab) · Maryland 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 | Maryland work state | Pennsylvania home state |
|---|---|---|
| Tax before the modeled other-state credit | $0 | $3,070 |
| Modeled other-state credit subtracted | $0 | $0 |
| Tax after that credit | $0 | $3,070 |
Total: $0 + $3,070 = $3,070 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 | MD state tax | To PA | Modeled total | If you worked in PA |
|---|---|---|---|---|
| $50,000 | $0 | $1,535 | $1,535 | $1,535 |
| $75,000 | $0 | $2,303 | $2,303 | $2,303 |
| $100,000 | $0 | $3,070 | $3,070 | $3,070 |
| $150,000 | $0 | $4,605 | $4,605 | $4,605 |
| $250,000 | $0 | $7,675 | $7,675 | $7,675 |
Single filer, all wages earned in Maryland, 2026 state tax rules, standard deductions. Maryland state tax on covered wages is exempt, but Maryland local tax and a possible Form 515 filing are not calculated. Pennsylvania local taxes are also excluded.
From paycheck withholding to your returns
- Withholding: For covered wages, Pennsylvania residents who do not become Maryland statutory residents claim Maryland state-withholding exemption on MW507 line 5. Maryland local withholding may remain. Check the separate exemptions on lines 6 and 7: York/Adams county jurisdictions, or a qualifying Pennsylvania jurisdiction that does not tax Maryland residents. Arrange Pennsylvania withholding or estimates separately.
- Returns: File Pennsylvania PA-40 if required. Maryland Form 515 may be required for local tax when your Pennsylvania home jurisdiction taxes Maryland residents; confirm the local rules. If Maryland state tax was withheld in error, use the Maryland refund procedure. Other Maryland-source income or statutory residence can require additional returns.
- Credit or refund: State wage reciprocity exempts qualifying compensation from Maryland state tax; erroneous state withholding is a refund issue, not a Pennsylvania state-credit substitute. Maryland local tax, Pennsylvania local tax and any local credit require a separate determination and are excluded from this example.
Worked example: $100,000 of wages
Single filer, full-year resident of Pennsylvania, all work performed in Maryland, no other income, standard deductions and modeled personal exemptions. Maryland state tax on covered wages is $0; Pennsylvania state tax is $3,070. This state-only total of $3,070 excludes Maryland and Pennsylvania local taxes.
State-only wage example: $100,000 × Pennsylvania's 3.07% = $3,070. Maryland state tax on covered wages is $0. Maryland local tax and Pennsylvania local earned-income tax are not calculated, so $3,070 is not necessarily your total income-tax bill.
Annual liability, not paycheck withholding or a refund estimate. Federal tax, payroll programs, other local taxes, special credits and part-year residency are excluded. Maryland state tax on covered wages is exempt, but Maryland local tax and a possible Form 515 filing are not calculated. Pennsylvania local taxes are also excluded.
Remote-work and local exceptions
This example assumes full-year Pennsylvania domicile, all wages earned in Maryland, and no Maryland statutory residence. Maintaining a Maryland abode for 183 days or more can change residence status. The modeled Maryland state tax of $0 does not establish a $0 Maryland local liability; verify MW507 lines 6/7 and Form 515 for your home jurisdiction and work county.
Official forms and instructions
- Maryland MW507 (2026): Pennsylvania state and local exemptions, lines 5–7 (opens in new tab)
- Maryland Form 515 and instructions (2025 edition): nonresident local tax (opens in new tab)
- Maryland official filing guidance: reciprocal residents and Form 515 (opens in new tab)
- Pennsylvania covered compensation and reciprocity (opens in new tab)
Source audit 2026-10-12. 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.
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 Maryland income tax if I live in Pennsylvania?
Covered wages are exempt from Maryland state income tax under reciprocity, but Maryland local tax can still apply. MW507 line 5 is the Pennsylvania state-withholding exemption; local exemptions are separate on lines 6 and 7. Check whether your home jurisdiction and Maryland workplace require local tax and Form 515.
Do I have to file taxes in both Pennsylvania and Maryland?
File Pennsylvania PA-40 if required. Maryland Form 515 may be required for local tax when your Pennsylvania home jurisdiction taxes Maryland residents; confirm the local rules. If Maryland state tax was withheld in error, use the Maryland refund procedure. Other Maryland-source income or statutory residence can require additional returns.
Will I be taxed twice?
Not on covered wages at the state level: this example owes $3,070 to Pennsylvania and $0 Maryland state tax on $100,000. Maryland local tax and Pennsylvania local tax or credits can still change your total; they are excluded. State wage reciprocity does not prove that all Maryland tax is zero.
Related
- Live in Maryland, work in Pennsylvania
- Moving from Pennsylvania to Maryland
- Moving from Maryland to Pennsylvania
- Live in Pennsylvania, work in Delaware
- 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.