Live in North Dakota, Work in West Virginia: Which State Taxes Your Paycheck?
Answer
Expect withholding in West Virginia and a return in both. North Dakota and West Virginia hold no reciprocal agreement, so the overlap is resolved after the fact: West Virginia taxes the West Virginia-source wages, and your North Dakota resident return claims a credit for that tax against the North Dakota liability on the same income.
Last verified
Two states can lawfully tax the same wages: West Virginia because the work happened there, North Dakota because you live there. Nothing prevents the overlap in advance — it is unwound afterwards, on the North Dakota return, through the credit for taxes paid to another state.
A North Dakota resident taxed by another state on the same income claims the credit for taxes paid to other states on Schedule ND-1CR. The credit is capped at the North Dakota tax on that income, so it removes the double tax but never refunds the excess when the other state charges more.
West Virginia also has a layer below the state one, and it is the layer that survives every agreement: Some West Virginia municipalities levy a flat weekly city service fee on people who work in the city. It is a fixed charge rather than a percentage of income, so no credit offsets it.
What you file
- 1Nonresident return · West VirginiaForm IT-140 with Schedule A
File the West Virginia nonresident return FIRST — you need the West Virginia tax figure before you can complete North Dakota.
- 2Resident return · North DakotaSchedule ND-1CR
File a North Dakota resident return reporting all income, then claim the credit for tax paid to West Virginia. The credit is capped at what North Dakota would have charged on that same income, so if West Virginia taxes it at a higher rate the difference is not refunded.
The two states, side by side
| North Dakota | West Virginia | |
|---|---|---|
| Taxes wages | Yes — graduated | Yes — graduated |
| Reciprocity partners | 2 (Form NDW-R) | 5 (Form WV/IT-104) |
| Convenience rule | No | No |
| Nonresident return | Form ND-1 with Schedule ND-1NR | Form IT-140 with Schedule A |
| Credit for other-state tax | Schedule ND-1CR | Schedule E (Form IT-140) |
| Nonresident safe harbour | None published | None published |
| Local income tax | No | Yes |
| Revenue department | North Dakota Office of State Tax Commissioner | West Virginia Tax Division |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in West Virginia and working in North Dakota 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: North Dakota → West VirginiaHome state only
- 1099 contractor: North Dakota → West VirginiaHome state, plus the client state if you work there
- Moved mid-year: North Dakota → West VirginiaTwo part-year returns
Other North Dakota pairs
Questions people actually ask
I live in North Dakota and work in West Virginia. Which state takes the tax out of my paycheck?
Expect withholding in West Virginia and a return in both. North Dakota and West Virginia hold no reciprocal agreement, so the overlap is resolved after the fact: West Virginia taxes the West Virginia-source wages, and your North Dakota resident return claims a credit for that tax against the North Dakota liability on the same income.
Which state should my employer be withholding for?
West Virginia. The wages are sourced to West Virginia, so West Virginia withholding is correct and there is no North Dakota 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. North Dakota gives residents a credit for tax paid to West Virginia on the same income, claimed on Schedule ND-1CR. The credit is capped at the North Dakota tax on that income, so if West Virginia taxes it more heavily the excess is not refunded by either state.
How current is this?
The North Dakota and West Virginia rules on this page were last checked against North Dakota Office of State Tax Commissioner and West Virginia Tax Division 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.
- North Dakota Office of State Tax Commissioner — individual income taxaccessed 2026-08-07
- West Virginia Tax Division — individual income taxaccessed 2026-08-07