2026 cross-border withholding
Multi-State Tax Calculator
Live in New Jersey and work in New York? Commute from Illinois to Wisconsin? This calculator estimates which state taxes your wages, whether a reciprocity agreement applies, and your net state income tax after credits.
Frequently Asked Questions
Do I pay taxes in both states if I work remotely?
It depends on reciprocity agreements, where you physically work, and whether a convenience-of-employer rule applies. Some neighboring states have reciprocity so you pay only your home state. Others require filing in both states with a credit for taxes paid to the work state.
What is the Convenience of Employer rule?
New York, Pennsylvania, Delaware, Nebraska, and Arkansas may tax remote workers on all wages when they work from home for an in-state employer by their own choice — not because the employer required it. Your home state typically gives a credit for taxes paid to the work state.
Which states have reciprocity agreements?
Dozens of cross-border pairs exist, especially in the Midwest and Mid-Atlantic. Examples include New Jersey–Pennsylvania, Illinois–Wisconsin, and Maryland–Virginia. Use this calculator to check your live-in and work-in pair and see the required withholding exemption form.
Do I get a credit for taxes paid to my work state?
Yes — most home states give a resident credit for income tax paid to another state on the same wages, which prevents double taxation on amounts above the credit limit.
Data Sources & Methodology
ExactTakeHome tax data is sourced from official government publications and verified against primary sources. Last verified: .
- Federal withholding: IRS Publication 15-T — Federal Income Tax Withholding Methods
- Social Security wage base: SSA 2026 Social Security Wage Base
- Medicare rates: IRS Topic No. 751 — Social Security and Medicare Withholding Rates
- State income tax: New Jersey Division of Taxation — 2026 New Jersey Gross Income Tax Withholding Tables