I work in NY and live in PA, my employer doesn’t deduct state taxes. Do I pay PA taxes or NY?

You can be taxed in both states, but Pennsylvania should give you a credit for any income taxes paid in New York.  You will need to file a New York nonresident tax return and a Pennsylvania resident tax return.  

 

If your employer is based in Arkansas, Connecticut, Delaware, Massachusetts, Nebraska, New York, or Pennsylvania, you must pay income taxes where your employer’s office is located.

If you are a New York State nonresident you must file Form IT-203, Nonresident and Part-Year Resident Income Tax Return, if you meet any of the following conditions:

1. You are a nonresident with New York source income and your New York adjusted gross income Federal amount column (Form IT-203, line 31) exceeds your New York standard deduction.
2. You want to claim a refund of any New York State, New York City, or Yonkers income taxes withheld from your pay.
3. You want to claim any of the refundable or carryover credits available.
4. You had a net operating loss for New York State personal income tax purposes for the tax year, without having a similar net operating loss for federal income tax purposes.

New York State Department of Taxation and Finance - Filing information for New York State non

 

New York Source Income of Nonresident Individuals, Estates, and Trusts, and Part-Year Resident Individuals and Trusts - Tax Bulletin IT-615 (TB-IT-615)

 

Note: Always complete the nonresident return first if filing in multiple states because your resident state might give you a credit for any taxes paid in that situation.