See all 50 states on one map and compare side-by-side. Start 7-day free trial — no card required
Pennsylvania
Employee Obligations (Which Returns YOU Must File)
Virginia has a reciprocity agreement with Pennsylvania. If your only income from Pennsylvania is wages, salary, tips, or commissions, file your Virginia return only — no Pennsylvania return needed. Give your Pennsylvania employer your reciprocity form (VA-4) each year.
Employer Obligations (What Your Employer Must Withhold & Remit)
Reciprocity applies. If the employee provides the reciprocity form (VA-4), withhold Virginia tax instead of Pennsylvania tax. Must still register for Pennsylvania unemployment insurance. Register from day 1. The COE rule means employers must withhold PA tax for remote Minnesota employees. Register with local EIT collectors under Act 32. Must withhold employee SUI (Pennsylvania is one of the few states requiring employee contributions to state unemployment). Unemployment applies to the first $10,000 of wages.
City & Local Income Taxes (Extra Filings Beyond the State Return)
Pennsylvania has the second most extensive local tax system in the country. Over 2,400 municipalities and 400 school districts levy local taxes. Philadelphia charges 3.44% on nonresidents (higher than the state tax rate). Pittsburgh charges 1% plus $52 per year LST. Most others range from 0.5% to 1.5%. Employers withhold local tax if the employee works 90 or more consecutive days. The M1CR credit does NOT cover local taxes. Working in Philadelphia means approximately 6.5% combined state and local.
Other Paycheck Deductions (Disability, Paid Leave, Unemployment)
Employee share of state unemployment insurance.
Remote Work Tax Risk — Convenience of Employer (COE) Rule
Pennsylvania has a full Convenience of Employer rule that affects Virginia residents. If your employer is based in Pennsylvania and you work remotely from Virginia, Pennsylvania may tax your entire paycheck as if you worked there.
Reciprocity Agreement — File Home State Only for Wages
Virginia has a reciprocity agreement with Pennsylvania. For wage income, you only need to file your Virginia return. Give your employer the reciprocity form (VA-4) each year to avoid Pennsylvania withholding.
Related guides
More from Virginia · Cross-State Work
See all cross-state workpairs →Moving to Pennsylvania from elsewhere · Cross-State Work
This is general information, not tax or legal advice. Laws change frequently. Always consult a licensed CPA or tax attorney for your specific situation. All information researched as of March 21, 2026.