Reciprocity allows residents of one state to be exempt from paying income tax withholding in the other (reciprocal) state. 
Virginia has reciprocity with the following states:

  • Kentucky
  • Maryland
  • Pennsylvania
  • Washington, D.C.
  • West Virginia

Reciprocity prevents both states from taxing the same qualifying income (wages or salaries). Generally, only your home state will tax the wages and salaries you receive from an employer in a reciprocity state.

Residents

  • If you earn wages or salaries as a nonresident of one of the states above, ask your employer for the appropriate forms to have Virginia taxes withheld from your qualifying income. If your employer doesn’t withhold Virginia taxes, you will be responsible for paying Virginia taxes during the year by making estimated payments. 
  • If you only earned wages or salaries that were exempt from the other state’s tax, you won’t have to file an income tax return or pay income tax to that state. If your employer withheld taxes from your wages or salaries that were exempt from that state’s tax, you will need to request a refund of your withholding.  

Nonresidents

If you are exempt from Virginia income tax, complete the Form VA-4 and give it to your employer. 

Who is exempt? 

If you are a resident of Kentucky or Washington, D.C. and commute daily into Virginia to earn wages or salaries, you do not need to file a Virginia income tax return if: 

  • Your income was taxed by your resident state, and
  • Wages or salaries are your only Virginia source income, and
  • You do not have a home in Virginia

If you are a resident of West Virginia, Maryland, or Pennsylvania and earn wages or salaries in Virginia, you do not need to file a Virginia income tax return if: 

  • Your income was taxed by your resident state, and
  • Wages or salaries are your only Virginia source income, and
  • You don’t live in Virginia for more than 183 days during the taxable year

If Virginia taxes were withheld, you will need to file a Form 763-S  to have those payments refunded.

Note: If you have Virginia source income other than wages or salaries, you will need to file a Virginia nonresident return (Form 763).