Commuter taxes 2026

Live in Pennsylvania, work in New York

New York taxes your New York wages; Pennsylvania taxes resident income and may allow a limited credit after its own sourcing check.

By Abu HasnatPage updated Nov 7, 2026Data: Pennsylvania and New York revenue departments (methodology)

Choose your next step

Payroll starting point: New York IT-2104.1: nonresidence and withholding allocation (opens in new tab). The certificate allocates withholding; it does not exempt Pennsylvania residents from New York state tax or establish a Pennsylvania credit.

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)
New York: Department of Taxation and Finance (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 New York. 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.

Work-state remote-work guidance checked 2026-11-02. The calculator's full-year and physical-work assumptions still apply.

I live inI work inAnnual wages ($)Filing status

State income tax: $4,860 a year

Modeled annual state income tax for living in Pennsylvania and working in New York: about $4,860 on $100,000 of wages, $1,790 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 New York

Official agency starting points: Pennsylvania tax agency (opens in new tab) · New York 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 New York

$4,860

nonresident

Tax to Pennsylvania

resident, after credit

Total state tax

$4,860

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 Pennsylvania residence and New York work
Step	New York work state	Pennsylvania home state
Tax before the modeled other-state credit	$4,860	$3,070
Modeled other-state credit subtracted	$0	$3,070
Tax after that credit	$4,860	$0

Total: $4,860 + $0 = $4,860 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 NY	To PA	Modeled 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.

From paycheck withholding to your returns

Withholding: Give New York payroll Form IT-2104 for withholding allowances and Form IT-2104.1 to certify nonresidence and the correct withholding allocation. IT-2104.1 is not a blanket exemption from New York state tax; its percentage must reflect New York sourcing rules, including any applicable convenience rule. Tell payroll within ten days of relevant status or allocation changes. Check Pennsylvania payments after the eligible resident credit and local obligations separately.
Returns: Complete New York nonresident Form IT-203 first, including IT-203-B Schedule A when wages require allocation; a return is also used to claim an overpayment of New York withholding. Then report the wages on Pennsylvania resident PA-40 and complete Schedule G-L for an eligible New York resident credit. Submit the New York return and W-2s with the Pennsylvania filing as required by its instructions. The linked annual IT-203 and PA-40 instructions are 2025 editions; Schedule G-L is the currently linked reusable form marked MOD 03-24. Use the filing-year editions and electronic attachment procedure.
Credit or refund: Pennsylvania limits its resident credit to eligible tax on income sourced outside Pennsylvania under Pennsylvania rules and taxed by both states in the same year. New York withholding is not the credit amount. Schedule G-L adjusts the eligible other-state tax and caps the credit at Pennsylvania tax on the qualifying income. New York tax on a Pennsylvania home-working day does not by itself establish Pennsylvania credit eligibility; keep a separate sourcing analysis.

Worked example: $100,000 of wages

Single filer, full-year resident of Pennsylvania, all work performed in New York, no other income, standard deductions and modeled personal exemptions. Before credit, Pennsylvania tax is $3,070. Modeled Pennsylvania credit: $3,070. Pay $4,860 to New York and $0 to Pennsylvania, modeled total $4,860.

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

All workdays in this estimate are physically in New York. For a different pattern, such as 176 New York office days and 44 Pennsylvania home days, keep the actual-day log and employer work-location policy. If the assigned or primary office is in New York, its convenience rule can treat home days as New York workdays unless the employer-necessity or bona fide employer-office conditions apply. Do not simply exclude every Pennsylvania day on IT-203-B or automatically credit all New York tax on PA-40. This calculator does not calculate that hybrid case.

Stroudsburg to Manhattan versus a Yonkers workplace

For a full-year Stroudsburg resident working for a private employer in Manhattan, New York state tax can apply while New York City personal income tax does not apply solely because the job is in the city. A job performed in Yonkers can instead trigger its separate nonresident earnings tax. Check the Pennsylvania home municipality and local collector for resident earned-income-tax filing and payment duties; an out-of-state employer may not withhold that local tax. These local checks and any local credits are excluded from this calculator.

Official forms and instructions

Source audit 2026-11-01. 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.

Check your payslip and keep these records

Compare the payroll certificate you supplied with the state withholding on your next payslip. Check city, county and school-district entries separately; a state exemption does not settle local tax.
Keep your W-2 and other withholding statements, copies of payroll certificates, filed state and local returns, and proof of tax paid. A refund depends on actual withholding and the completed return, not this annual estimate.
Keep an actual work-location log, including home-working days. This calculator assumes ordinary employee wages, full-year residence in Pennsylvania and every workday physically in New York.
If you moved during the year, have nonwage income or do not meet that scope, follow the pair's remote and local exceptions and the moving-year tax guide before using the amount as your own result. This tool does not calculate hybrid allocation, local credits or a personal refund.

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 New York employer

New York has a "convenience of the employer" rule. For a nonresident employee whose assigned or primary office is in New York, ordinary out-of-state telework may remain New York-source under the convenience rule. Check employer necessity and the bona fide employer-office conditions in TSB-M-06(5)I. The employer's New York address alone does not determine the allocation. The calculator does not allocate hybrid 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.
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?

Complete New York nonresident Form IT-203 first, including IT-203-B Schedule A when wages require allocation; a return is also used to claim an overpayment of New York withholding. Then report the wages on Pennsylvania resident PA-40 and complete Schedule G-L for an eligible New York resident credit. Submit the New York return and W-2s with the Pennsylvania filing as required by its instructions. The linked annual IT-203 and PA-40 instructions are 2025 editions; Schedule G-L is the currently linked reusable form marked MOD 03-24. Use the filing-year editions and electronic attachment procedure.

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 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.

Rules reviewed 2026-09-24 from state revenue departments and the Tax Foundation. Estimates only; confirm with each state's revenue department.