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Which states have reciprocal agreements?

SOLVEDby IntuitProConnect Tax1Updated July 27, 2021

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 VirginiaArizonaWEC
Anywhere other than District of ColumbiaDistrict of ColumbiaD-4A
Iowa, Kentucky, Michigan, or WisconsinIllinoisIL-W-5-NR
Kentucky, Michigan, Ohio, Pennsylvania, or WisconsinIndianaWH-47
IllinoisIowa44-106
Illinois, Indiana, Michigan, Ohio, Virginia, West Virginia, or WisconsinKentucky42A809
District of Columbia, Pennsylvania, Virginia, or West VirginiaMarylandMW 507
Illinois, Indiana, Kentucky, Minnesota, Ohio, or WisconsinMichiganPer Revenue Administrative Bulletin 2017-03, employers can create their own form or employees can provide a letter.
Michigan or North DakotaMinnesotaMWR
North DakotaMontanaMT-R
PennsylvaniaNew JerseyNJ-165
Minnesota or MontanaNorth DakotaNDW-R
Indiana, Kentucky, Michigan, Pennsylvania, or West VirginiaOhioIT-4NR
Indiana, Maryland, New Jersey, Ohio, Virginia, or West VirginiaPennsylvaniaREV-419
District of Columbia, Kentucky, Maryland, Pennsylvania, or West VirginiaVirginiaVA-4
Kentucky, Maryland, Ohio, Pennsylvania, or VirginiaWest VirginiaWV/IT-104 R
Illinois, Indiana, Kentucky, or MichiganWisconsinW-220

Note: This table is provided for informational purposes only. Make sure to check with your state department of revenue's website if you're unsure of current regulations.

Related Topics

How to create a multi-state return
Entering W-2 wages and withholdings on multi-state returns
Input multi-state amounts in ProConnect Tax Online

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