Live in Virginia, work in Kentucky
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: $4,936 a year
Living in Virginia and working in Kentucky, you'd pay about $4,936 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 KY | To VA | Total | If you worked in VA |
|---|---|---|---|---|
| $50,000 | $0 | $2,061 | $2,061 | $2,061 |
| $75,000 | $0 | $3,498 | $3,498 | $3,498 |
| $100,000 | $0 | $4,936 | $4,936 | $4,936 |
| $150,000 | $0 | $7,811 | $7,811 | $7,811 |
| $250,000 | $0 | $13,561 | $13,561 | $13,561 |
Single filer, all wages earned in Kentucky, 2026 state tax rules, standard deductions. Local income taxes not included.
What to do
- Reciprocity: VA residents who commute daily to work in KY are exempt; Form 42A809. KY local occupational taxes still apply.
- Keep a record of the days you work in each state, especially if you sometimes work from home.
Local income taxes
- Kentucky: City/county occupational license taxes are levied by work location on residents and nonresidents alike (e.g., Louisville Metro ~2.2% combined, Lexington 2.25%), and are NOT covered by KY's state reciprocity agreements - OH/IN commuters into Louisville/Covington still pay them.
Special credit rules
- VA: Reverse-credit with AZ, CA, OR: residents of those states working in VA claim a credit on the VA nonresident return for tax paid to their home state (so VA, the work state, gives the credit). VA residents get no VA credit for tax paid to AZ, CA, or OR on income those states tax - they claim credit on those states' returns instead.
Frequently asked questions
Do I pay Kentucky income tax if I live in Virginia?
No. Under the reciprocity agreement you pay only Virginia. VA residents who commute daily to work in KY are exempt; Form 42A809. KY local occupational taxes still apply.
Do I have to file taxes in both Virginia and Kentucky?
Usually you file only one state return (a resident return in Virginia), 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 Virginia taxes your wages: about $4,936 on $100,000.
Related
- Live in Kentucky, work in Virginia
- Moving from Virginia to Kentucky
- Moving from Kentucky to Virginia
- Live in Virginia, work in Washington, DC
- Live in Virginia, work in Maryland
- Live in Virginia, work in North Carolina
- Live in Virginia, work in Tennessee
- Live in Virginia, 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.