Maryland is a state that has reciprocal tax agreements with several states in the US. These agreements allow taxpayers to file and pay taxes based on their state of residency and avoid double taxation. If you are a resident of Maryland, here are the states that have reciprocal tax agreements with Maryland:
1. Pennsylvania
If you are a resident of Pennsylvania who works in Maryland, you are only required to pay taxes in Pennsylvania. This means that you do not have to file a Maryland tax return or pay any taxes to the state of Maryland.
2. Virginia
If you are a resident of Virginia who works in Maryland, you are only required to pay taxes in Virginia. This means that you do not have to file a Maryland tax return or pay any taxes to the state of Maryland.
3. West Virginia
If you are a resident of West Virginia who works in Maryland, you are only required to pay taxes in West Virginia. This means that you do not have to file a Maryland tax return or pay any taxes to the state of Maryland.
4. Washington, D.C.
If you are a resident of Washington, D.C. who works in Maryland, you are only required to pay taxes in Washington, D.C. This means that you do not have to file a Maryland tax return or pay any taxes to the state of Maryland.
5. Delaware
If you are a resident of Delaware who works in Maryland, you are only required to pay taxes in Delaware. However, if you are a Maryland resident who works in Delaware, you must pay taxes in both states.
In conclusion, if you are a resident of Maryland who works in any of the above states with reciprocal tax agreements, you will only be required to pay taxes in your state of residence. This can save you time and money when it comes to filing your tax returns. However, it is important to note that you must still follow the tax laws of both states, including any filing requirements and deadlines.
