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House Co-Sponsorship Memoranda

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House of Representatives
Session of 2019 - 2020 Regular Session


Posted: February 15, 2019 09:18 AM
From: Representative Francis X. Ryan
To: All House members
Subject: RESOLUTION ~ Income Tax Reciprocity

In the near future, I will introduce a resolution requesting the Governor and the Secretary of Revenue of the Commonwealth to enter into negotiations with the State of New York to create a tax reciprocity agreement between our two states.

Currently, Pennsylvania has income tax reciprocity with six other states. These agreements allow Pennsylvania residents who work in a reciprocal agreement state to remain subject to the Pennsylvania state income tax on employee compensation and for out-of-state workers to remain subject to the income tax rate of their home state.

Establishing income tax reciprocity with the state of New York would be beneficial to Pennsylvanian’s for two main reasons, the first being that Pennsylvania has a lower state income tax than New York. Pennsylvania’s current income tax is a flat rate of 3.07% while New York’s income tax ranges between 4.00% and 8.82%. Therefore, income tax reciprocity would allow Pennsylvania residents working in New York to pay a lower percentage of income tax.

Secondly, based on figures provided by the Department of Revenue, there are approximately 17,500 New York resident-commuters who remit state income tax to Pennsylvania, while 42,400 Pennsylvania resident-commuters remit state income tax to New York. It is estimated that a reciprocal agreement could result in a net gain of income tax revenues for the Commonwealth of over $60 million.

Please join me in co-sponsoring this legislation.

Introduced as HR104