Which states have reciprocal agreements?
With the exception of Montana, state reciprocal agreements are limited to a handful of states on the East coast and in the Midwest. The table below lists the state(s) that a particular state has a reciprocal tax agreement with.
As a worker in a reciprocal state, you can fill out that state's exemption form and give it to your employer if you don't want them to withhold taxes for your work state. If you do this, make sure your employer also withholds taxes for your resident state, otherwise you may get hit with underpayment penalties come tax time.
|If you're a resident of...||and you work in...||Submit this exemption form to your employer|
|California, Indiana, Oregon, or Virginia||Arizona||WEC|
|Anywhere other than District of Columbia||District of Columbia||D-4A|
|Iowa, Kentucky, Michigan, or Wisconsin||Illinois||IL-W-5-NR|
|Kentucky, Michigan, Ohio, Pennsylvania, or Wisconsin||Indiana||WH-47|
|Illinois, Indiana, Michigan, Ohio, Virginia, West Virginia, or Wisconsin||Kentucky||42A809|
|District of Columbia, Pennsylvania, Virginia, or West Virginia||Maryland||MW 507|
|Illinois, Indiana, Kentucky, Minnesota, Ohio, or Wisconsin||Michigan||Per Revenue Administrative Bulletin 2017-13, employers can create their own form or employees can provide a letter.|
|Michigan or North Dakota||Minnesota||MWR|
|Minnesota or Montana||North Dakota||NDW-R|
|Indiana, Kentucky, Michigan, Pennsylvania, or West Virginia||Ohio||IT-4NR|
|Indiana, Maryland, New Jersey, Ohio, Virginia, or West Virginia||Pennsylvania||REV-419|
|District of Columbia, Kentucky, Maryland, Pennsylvania, or West Virginia||Virginia||VA-4|
|Kentucky, Maryland, Ohio, Pennsylvania, or Virginia||West Virginia||WV/IT-104 R|
|Illinois, Indiana, Kentucky, or Michigan||Wisconsin||W-220|