New Jersey Gov. Chris Christie ended the longstanding reciprocal tax agreement between New Jersey and Pennsylvania. The agreement had exempted employees that live in New Jersey and Pennsylvania but worked on the opposite side of the Delaware River from being taxed in the state where they worked.

If Christie does not reverse his decision to terminate the pact, many commuters may face larger overall state and local tax liabilities beginning January 1, 2017.  No taxpayers living in either state will pay less tax as a result of this change.

If you are an affected taxpayer, please contact us for more details on how this action will change your state income tax.