Instead of double deduction and taxation, the worker`s Home Member State can credit the amount withheld for his or her state of work. But remember that a worker`s state of residence and work may not calculate the same tax rate on government income tax. The states of Wisconsin with reciprocal tax agreements are: employees do not owe double the taxes in non-reciprocal states. But employees might have to do a little more work, for example. B file several government tax returns. Leave the withholding tax for an employee`s work condition if your employee provides you with the state tax exemption form. Then start with the retention of the employee`s home state. Virginia has a mutual agreement with the District of Columbia, Kentucky, Maryland, Pennsylvania and West Virginia, if the only source of income comes from wages. Suppose an employee lives in Pennsylvania but works in Virginia. Pennsylvania and Virginia have a mutual agreement. The employee only has to pay government and local taxes for Pennsylvania, not Virginia.

They keep taxes for the employee`s home state. Other states may also have reciprocal agreements, so check with your state`s tax office to determine if your state has such agreements. If that is not the case, and a worker lives and works in different states, and they collect each of the taxes, then he or she has to pay taxes to both states. If you accept a job in a mutual state and meet the exemption criteria, ask your employer to withhold the Virginia tax. If your employer is not withheld from the virginia tax, ask yourself not to withhold the tax. You`ll have to pay an estimated tax in Virginia. The map below shows 17 states (including the District of Columbia) where non-resident workers living in different states do not have to pay taxes. Move the cursor over each orange state to see their reciprocity agreements with other states and find out what form non-resident workers must submit to their employers to be exempt from deduction in that state. For example, New York cannot tax you if you live in Connecticut, but work in New York, and you pay taxes on income earned in Connecticut.