I never lived in NJ. PA all my life. Yet somehow I got on the NJ Dept. of Revenue tax roles. They mail me a tax return package every year. I just pitch it in the trash.
Identification
Pennsylvania has a reciprocal tax agreement with Indiana, Maryland, New Jersey, Ohio, Virginia and West Virginia. The state of New Jersey has a reciprocal tax agreement with only Pennsylvania. A reciprocal agreement means that both states mutually agree that employees should pay income tax to their resident state rather than their work state. Provided you submit the proper form, if you have an employer, he is responsible for making the appropriate withholding from your paychecks and submitting your payments to your home state’s taxation department. A reciprocal tax agreement applies to salaries, wages, commissions, bonuses, tips, fees and other compensation for services rendered.
Determination
Since New Jersey and Pennsylvania have a reciprocal tax agreement, if you live in New Jersey and work in Pennsylvania, you should pay New Jersey income tax to the New Jersey Department of Treasury, Division of Taxation. If you lived in Pennsylvania and worked in New Jersey, you would pay Pennsylvania income tax to the Pennsylvania Department of Revenue.