Human Resources

Reciprocity means that two or more states have agreed to exempt the earned income of residents of neighboring states from income taxes. These reciprocal agreements make it possible for residents of one state to work in a neighboring state while only paying for income taxes to their state of residency. These agreements are common in areas where many people work across state lines. If you live in one state and work in another, and those state shave this type of reciprocal agreement, you will only need to pay taxes in your home state.