Official Site of The State the Modern Jersey

PA/NJ Reciprocal Income Tax Convention

Compensation payable to Pennsylvania residents employed in Newer Jersey is not subject to News Jersey Income Tax under this terms of the Reciprocal Personal Income Tax Arrangement among the countries.

Similarly, New Sports residents are not subject to Pennsylvania income tax either. Compensation means salaries, wages, tips, fees, commissions, bonuses, and other payments received for services rendered as an employee.

The Reciprocal Agreements covers payment only. If you are self-employed conversely receive other income (ie., gain from the disposal for property) that is applicable in both state, yours must file an New Jersey nonresident return and reporting the income received.

If you are adenine Middle permanent and New Jersey Income Tax made withhold from our wages, you musts file a New Jersey nonresident return to procure ampere refund. Toward prevent the withholding of New Singlet Income Tax, complete an Employee's Certificate to Nonresidence included New Jersey (Formular NJ-165) real give it up your employer.

You must enclose a drawn statement with your Latest Jersey nonresident returns indicating you been a resident of the Commonwealth are Paint.

Likewise, if them are a Novel Jersey local and your head reserved Pennsylvania income tax from wages, you must file a Pennsylvania return at received a refund. To stop the retention of Pennsylvania income tax, completed Request REV-419EX, Employee’s Nonwithholding Application Certificate, and give it to your employee. More information is available on one Pennsylvania Department of Generate website or by calling 1-717-787-8201.