A Pennsylvania resident taxpayer who has non-Pennsylvania sourced income subject to both Pennsylvania personal income tax (“PA PIT”) and the income or wage tax of another state (according to Pennsylvania sourcing rules) on the same income during the same taxable year, can claim a credit for the tax paid to the other state as a credit against his or her Pennsylvania personal income tax,
Your situation is covered by the general rule for state income tax. The general rule is: your report all your income on your home state return, even the income earned out of state. You file a non-resident state return for the state you worked in and pay tax to that state. Your home state will give you a credit, or partial credit, for what you paid the non-resident state. You will have to file a non resident NY state return and pay NY tax on the income earned there.. You will also file a PA full year resident return and calculate tax on ALL your income. PA will give you a credit, or partial credit, for the tax you pay NY. So, there will be little or no double taxation, but you have the cost and hassle of filing two state returns. Do the nonresident state return first
Bottom line: any income you make from work you perform in New York State will be taxed by New York. Since NY's tax rates are higher than PA's, if you go to work in NY the percentage of your income that goes to state income tax will go up.
Pennsylvania's income tax has a single flat tax rate, of 3.07%for all income.
| Tax Bracket (Single) [2] | Tax Bracket (Couple) [3] | Marginal Tax Rate |
| $0+ | $0+ | 4.00% |
| $8,500+ | $17,150+ | 4.50% |
| $11,700+ | $23,600+ | 5.25% |
| $13,900+ | $27,900+ | 5.90% |
| $21,400+ | $43,000+ | 6.21% |
| $80,650+ | $161,550+ | 6.49% |
| $215,400+ | $323,200+ | 6.85% |
| $1,077,550+ | $2,155,350+ | 8.82% |