Live in Pennsylvania, work in New York
No reciprocity: you file a nonresident return in the work state and pay its tax. Your home state gives a credit for that tax, so you pay the home state only if its tax is higher.
State income tax: $4,860 a year
Living in Pennsylvania and working in New York, you'd pay about $4,860 in state income tax on $100,000 of wages, $1,790 more than if you worked in Pennsylvania.
No reciprocity: you file a nonresident return in the work state and pay its tax. Your home state gives a credit for that tax, so you pay the home state only if its tax is higher.
State tax at different salaries
| Wages | To NY | To PA | Total | If you worked in PA |
|---|---|---|---|---|
| $50,000 | $2,103 | $0 | $2,103 | $1,535 |
| $75,000 | $3,453 | $0 | $3,453 | $2,303 |
| $100,000 | $4,860 | $0 | $4,860 | $3,070 |
| $150,000 | $8,291 | $0 | $8,291 | $4,605 |
| $250,000 | $15,772 | $0 | $15,772 | $7,675 |
Single filer, all wages earned in New York, 2026 state tax rules, standard deductions. Local income taxes not included.
What to do
- Ask your employer to withhold New York tax. If Pennsylvania's tax is higher, withhold the difference for Pennsylvania too (or make estimated payments) to avoid an underpayment penalty.
- File the New York nonresident return first, then claim the credit for taxes paid to another state on your Pennsylvania resident return.
- Keep a record of the days you work in each state, especially if you sometimes work from home.
Working from home for a New York employer
New York has a "convenience of the employer" rule. Full rule (20 NYCRR 132.18). Nonresidents working from home for a NY-based employer are taxed on those days unless working outside NY is an employer necessity (bona fide employer office test, TSB-M-06(5)I). Upheld again by NY Tax Appeals Tribunal in Zelinsky (2025). Still in force for 2026.
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 York: NYC personal income tax applies to NYC residents only (about 3.078%-3.876%); nonresidents commuting into NYC pay no city income tax. Yonkers: resident surcharge (16.75% of NY state tax) and 0.5% nonresident earnings tax on wages earned in Yonkers. Self-employed in the MTA district pay MCTMT.
Special credit rules
- NY: NY does not credit other states' tax on income NY treats as NY-sourced. Main double-tax risk is for nonresidents working remotely for NY employers (convenience rule) whose home state will not credit NY tax on days physically worked at home. NJ and CT generally allow the credit; other states may not.
Frequently asked questions
Do I pay New York income tax if I live in Pennsylvania?
Yes. New York taxes wages earned there by nonresidents. On $100,000 that's about $4,860.
Do I have to file taxes in both Pennsylvania and New York?
Usually yes: a nonresident return in New York and a resident return in Pennsylvania, where you claim a credit for the tax paid to New York. File the New York return first.
Will I be taxed twice?
Not on the same state-level wages. Pennsylvania credits the tax you pay New York, so your total is about $4,860 on $100,000, compared with $3,070 if you also worked in Pennsylvania. Local city or county taxes may still apply.
Related
- Live in New York, work in Pennsylvania
- Moving from Pennsylvania to New York
- Moving from New York to Pennsylvania
- Live in Pennsylvania, work in Delaware
- Live in Pennsylvania, work in Maryland
- Live in Pennsylvania, work in New Jersey
- 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.