Live in New York, Work in Virginia: Which State Taxes Your Paycheck?
Answer
Two returns, one credit. Virginia has the first claim on wages earned inside the state and withholds accordingly. New York then taxes you as a resident on everything and gives credit for what Virginia already took, capped at what New York would have charged on that same income.
Last verified
Two states can lawfully tax the same wages: Virginia because the work happened there, New York because you live there. Nothing prevents the overlap in advance — it is unwound afterwards, on the New York return, through the credit for taxes paid to another state.
A New York resident taxed by another state on the same income claims the credit for taxes paid to other states on Form IT-112-R. The credit is capped at the New York tax on that income, so it removes the double tax but never refunds the excess when the other state charges more.
What you file
- 1Nonresident return · VirginiaForm 763
File the Virginia nonresident return FIRST — you need the Virginia tax figure before you can complete New York.
- 2Resident return · New YorkForm IT-112-R
File a New York resident return reporting all income, then claim the credit for tax paid to Virginia. The credit is capped at what New York would have charged on that same income, so if Virginia taxes it at a higher rate the difference is not refunded.
The two states, side by side
| New York | Virginia | |
|---|---|---|
| Taxes wages | Yes — graduated | Yes — graduated |
| Reciprocity partners | None | 5 (Form VA-4) |
| Convenience rule | Yes — general rule | No |
| Nonresident return | Form IT-203 | Form 763 |
| Credit for other-state tax | Form IT-112-R | Schedule OSC |
| Nonresident safe harbour | None published | None published |
| Local income tax | Yes | No |
| Revenue department | New York State Department of Taxation and Finance | Virginia Department of Taxation |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Virginia and working in New York gives:Both states — credit offsets the double tax.
Same two states, different situation
The withholding answer turns on how you are paid and where the work happens, not only on which two states are involved.
- Remote worker: New York → VirginiaHome state only
- 1099 contractor: New York → VirginiaHome state, plus the client state if you work there
- Moved mid-year: New York → VirginiaTwo part-year returns
Other New York pairs
Questions people actually ask
I live in New York and work in Virginia. Which state takes the tax out of my paycheck?
Two returns, one credit. Virginia has the first claim on wages earned inside the state and withholds accordingly. New York then taxes you as a resident on everything and gives credit for what Virginia already took, capped at what New York would have charged on that same income.
Which state should my employer be withholding for?
Virginia. The wages are sourced to Virginia, so Virginia withholding is correct and there is no New York withholding to set up.
Will I end up paying tax twice on the same income?
Not twice over, but you will pay the higher of the two rates. New York gives residents a credit for tax paid to Virginia on the same income, claimed on Form IT-112-R. The credit is capped at the New York tax on that income, so if Virginia taxes it more heavily the excess is not refunded by either state.
How current is this?
The New York and Virginia rules on this page were last checked against New York State Department of Taxation and Finance and Virginia Department of Taxation on 2026-08-07. We re-check the full grid every December after state legislative sessions close, and re-check the convenience-of-the-employer states quarterly because that is where the rules move fastest.
Sources
Every fact above comes from the revenue department that publishes the rule. We do not cite secondary summaries, and we do not restate a figure we could not find at source.
- New York State Department of Taxation and Finance — individual income taxaccessed 2026-08-07
- Virginia Department of Taxation — individual income taxaccessed 2026-08-07
- Virginia — Form VA-4accessed 2026-08-07
- Virginia Tax — Reciprocityaccessed 2026-08-07