A state with a reciprocal agreement allows residents of one state to work in a neighboring state while only paying income taxes to their state of residency.  This simplifies tax time for people who live in one state but work in another by requiring them to file only one state tax return.  If the state where you work and where you live has a reciprocal agreement, you are exempt from income taxes on any wages earned in the state where you work and only pay taxes to the state where you live.

If the scenario outlined above applies to you, you are responsible for submitting the appropriate form to the Payroll team to ensure that you are not taxed in both states on your upcoming paycheck(s). Once the Payroll team receives the certificate/form for your state, it will take effect on the next available pay period.  Please note that the Payroll team cannot process any retro adjustments to your state taxes should you fail to complete and submit this tax form.

See the current list of states offering reciprocity.