When it comes to state income taxes, it can be confusing to navigate which states have reciprocal agreements. A reciprocal agreement allows residents of one state to work in another state without having to file income taxes in both states.

As of 2021, there are 17 states with reciprocal agreements. These states include:

1. Arizona

2. California

3. Connecticut

4. Delaware

5. District of Columbia

6. Illinois

7. Indiana

8. Kentucky

9. Maryland

10. Massachusetts

11. Michigan

12. Minnesota

13. Montana

14. New Jersey

15. Ohio

16. Pennsylvania

17. Virginia

It’s important to note that even if your state has a reciprocal agreement with another state, you may still need to file a tax return in both states if you earn income from sources outside of employment, such as rental properties or investments.

Reciprocal agreements can also apply to local taxes, such as city or county taxes, in addition to state income taxes. It’s always best to check with your employer and state tax agency to make sure you are complying with all applicable tax laws.

In addition, reciprocal agreements may only apply to specific types of income, such as wages and salaries. If you earn income that falls outside of the agreement, you may still need to file taxes in both states.

It’s also important to keep in mind that reciprocal agreements can change at any time. Always check with your state tax agency for current information.

In conclusion, if you are a resident of one of the 17 states with reciprocal agreements and work in another state, this can simplify your tax filing process. However, it’s important to be aware of the limitations of these agreements and to check with your state tax agency for specific guidance on your situation.