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New Member
posted Jul 4, 2025 7:13:16 PM

How do I get NJ credit for taxes paid to PA when I live in NJ ad work in PA?

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1 Best answer
Level 15
Jul 5, 2025 4:44:38 AM

 NJ and PA are reciprocal states. You employer should not be withholding PA state tax. If they mistakenly withhold PA state tax, you have to file a PA non-resident return to get a refund.  NJ will not give you a credit. 

 

The reciprocal agreement between PA & NJ does not apply to city tax. You can claim a credit for any tax paid/withheld for a PA city (e.g. Philadelphia). 

 

Reference: https://www.nj.gov/treasury/taxation/njit14.shtml#:~:text=NJ%20Taxation&text=If%20you%20are%20a%20New,another%20jurisdiction%20outside%20New%20Jersey.

1 Replies
Level 15
Jul 5, 2025 4:44:38 AM

 NJ and PA are reciprocal states. You employer should not be withholding PA state tax. If they mistakenly withhold PA state tax, you have to file a PA non-resident return to get a refund.  NJ will not give you a credit. 

 

The reciprocal agreement between PA & NJ does not apply to city tax. You can claim a credit for any tax paid/withheld for a PA city (e.g. Philadelphia). 

 

Reference: https://www.nj.gov/treasury/taxation/njit14.shtml#:~:text=NJ%20Taxation&text=If%20you%20are%20a%20New,another%20jurisdiction%20outside%20New%20Jersey.