Pennsylvania can tax assignment wages, but six neighboring states have W-2 reciprocity with Pennsylvania. A qualifying resident must give payroll the correct nonwithholding certificate; reciprocity is not automatic and it does not cover every kind of income or every local tax.
Key takeaways
- Pennsylvania’s withholding guide says nonresidents performing services in Pennsylvania generally face Pennsylvania withholding unless a reciprocal agreement applies. The reciprocal states listed are Indiana, Maryland, New Jersey, Ohio, Virginia, and West Virginia.
- The state directs qualifying employees to use REV-419. Its guidance also distinguishes compensation from other income, and local wage or earned-income tax is a separate question from state reciprocity.
How Pennsylvania Travel Nurse Taxes works
Pennsylvania’s withholding guide says nonresidents performing services in Pennsylvania generally face Pennsylvania withholding unless a reciprocal agreement applies. The reciprocal states listed are Indiana, Maryland, New Jersey, Ohio, Virginia, and West Virginia.
The state directs qualifying employees to use REV-419. Its guidance also distinguishes compensation from other income, and local wage or earned-income tax is a separate question from state reciprocity.
Which return and records may be needed?
If you do not live in a reciprocal state, use current Pennsylvania filing instructions for Pennsylvania-source income. If you do qualify but tax was withheld, keep the W-2 and the certificate; a refund path may be needed instead of treating the withholding as a resident-state credit.
Read the complete multi-state taxes guide.
Why state residency and your federal tax home are different
A state return asks which state may tax income. The federal travel-nurse tax-home analysis asks whether you were away from a qualifying tax home and incurred duplicated living expenses. One label does not establish the other, so keep the records for each question separate.
See the travel nurse tax-home guide.
What to do before your first paycheck
- Give payroll REV-419 before the first paycheck if you live in a reciprocal state.
- Record the hospital city and work location because local tax may be separate.
- Reconcile W-2 Boxes 15 through 17 before filing.
Run the state mix in the Contract Analyzer.
FAQ
Which states have reciprocity with Pennsylvania?
Pennsylvania lists Indiana, Maryland, New Jersey, Ohio, Virginia, and West Virginia for qualifying compensation.
Does Pennsylvania reciprocity happen automatically?
No. Use the state’s employee nonwithholding certificate with payroll and check the first pay stub.
Do local taxes disappear under reciprocity?
Not necessarily. Local wage or earned-income taxes have their own rules.
Does reciprocity cover 1099 work?
Do not assume so. The guidance describes employee compensation and withholding.
Sources and filing note
This is general educational information, not individualized tax advice. Tax forms and rules change; use current official instructions and consult a qualified tax professional for a multi-state or tax-home question.
Pennsylvania Department of Revenue employer withholding guide