Chapter 05 · Business Blueprint
State Taxes
Reciprocity, no-income-tax states, and how to file when you work in one state and live in another - the map that saves you from double taxation.
5 min read·Updated Jul 20, 2026
States with reciprocity
If the state you work in has a reciprocity agreement with the state you live in, the procedure is usually simple.
"You won't be taxed on where the income is earned; you'll just be taxed on where you live." - Richard Auxier, Tax Policy Center
You can ask your employer to withhold income taxes for the state where you live, and file a state income tax return like you would if you worked in your home state.
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