What States Have a Reciprocal Agreement

31 Jul What States Have a Reciprocal Agreement

If you are planning to move to a different state or are considering working remotely, understanding if your state has a reciprocal agreement with other states can be beneficial. Reciprocal agreements allow individuals who work in one state, but live in another, to pay taxes where they reside, instead of where they work. This can save you money and hassle when it comes to filing your taxes. Here is a breakdown of which states have reciprocal agreements:

1. Arizona

Arizona has reciprocal agreements with California, Indiana, Oregon, and Virginia.

2. District of Columbia

The District of Columbia has reciprocal agreements with Maryland and Virginia.

3. Illinois

Illinois has reciprocal agreements with Iowa, Kentucky, Michigan, and Wisconsin.

4. Indiana

Indiana has reciprocal agreements with Kentucky, Michigan, Ohio, Pennsylvania, and Wisconsin.

5. Iowa

Iowa has reciprocal agreements with Illinois and Wisconsin.

6. Kentucky

Kentucky has reciprocal agreements with Illinois, Indiana, Michigan, Ohio, Virginia, and Wisconsin.

7. Maryland

Maryland has reciprocal agreements with the District of Columbia, Pennsylvania, Virginia, and West Virginia.

8. Michigan

Michigan has reciprocal agreements with Illinois, Indiana, Kentucky, Minnesota, Ohio, and Wisconsin.

9. Minnesota

Minnesota has reciprocal agreements with Michigan, North Dakota, and Wisconsin.

10. Montana

Montana has reciprocal agreements with North Dakota.

11. New Jersey

New Jersey has reciprocal agreements with Pennsylvania.

12. North Dakota

North Dakota has reciprocal agreements with Minnesota and Montana.

13. Ohio

Ohio has reciprocal agreements with Indiana, Kentucky, Michigan, Pennsylvania, and West Virginia.

14. Oregon

Oregon has reciprocal agreements with Arizona, Idaho, and California.

15. Pennsylvania

Pennsylvania has reciprocal agreements with Indiana, Maryland, New Jersey, Ohio, Virginia, and West Virginia.

16. Virginia

Virginia has reciprocal agreements with Arizona, Kentucky, Maryland, Pennsylvania, and West Virginia.

17. West Virginia

West Virginia has reciprocal agreements with Kentucky, Maryland, Ohio, Pennsylvania, and Virginia.

18. Wisconsin

Wisconsin has reciprocal agreements with Illinois, Indiana, Kentucky, and Michigan.

It`s essential to note that reciprocal agreements only apply to state income taxes. Other taxes, such as property tax or sales tax, are not affected by these agreements. Additionally, if you work in a state that doesn`t have a reciprocal agreement with your state of residence, you may still be eligible for a tax credit. It`s best to consult with a tax professional to ensure you are meeting all your tax obligations correctly.

In conclusion, if you`re planning on moving or working remotely, knowing which states have a reciprocal agreement can help you save money and avoid tax-related headaches. By understanding these agreements and consulting with a tax professional, you can ensure you`re meeting all your tax obligations efficiently and effectively.