2024 Rank: 30
2023 Rank: 29
Pennsylvania manages to score as the 30th-best state despite a harmful convenience of the employer rule primarily by virtue of its six reciprocity agreements covering all significant incoming commuting flows except for that coming from Delaware. The state also offers a moderate withholding threshold of $5,000, though taxpayers would be better served by day-based thresholds. Pennsylvania offers no filing threshold whatsoever.
Category | Current Law | Score | Total Possible |
Filing threshold | None | 0 | 10 |
Reciprocity agreements | Indiana, Maryland, New Jersey, Ohio, Virginia, West Virginia | 7.13 | 10 |
Convenience of the employer rule | Full | -5 | 0 |
Individual Income Tax Code | 2.55 | 5 | |
Withholding threshold | Wage threshold: $5,000 | 4 | 10 |
Total Score | 8.68 | 35 |
Ways to Improve:
- Pass filing and withholding thresholds of greater than 30 days
- Seek reciprocity agreements with:
- Delaware: 12.91 percent of incoming commuters
- Repeal convenience of the employer rule
For further ideas for how your state could improve, see our Example Remote Work Provision.
Read the report here, or click below to read how your state performs on the remote worker index.
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