Q&A with the Pennsylvania Department of Revenue

Has the DOR taken any stance regarding the Wynne case as it applies to a PA resident taxpayer’s ability to claim credit for taxes paid to political subdivisions of other states?

Nov 04, 2015

A PA Resident works in Ohio where his wages are exempt from OH state taxes due to the PA/OH reciprocal agreement but they are subject to a 2% local income tax in OH.  The taxpayer lives in a jurisdiction that does not impose an EIT. Section 314 of the PIT law provides for a credit against PIT for tax paid to other states, but provides that “states” only include states of the United States, DC, Puerto Rico and any territory or possession of the USA. 

The statute does not address taxes paid to political subdivisions of other states, and the PIT guide states that no credit is allowed for taxes paid to political subdivisions of other states. 


In light of the Supreme Court’s decision in Wynne, is the taxpayer entitled to a credit against his PIT for the 2% tax paid to the OH locality? If so, and the taxpayer also lives in an EIT jurisdiction, in what order should the credit for OH taxes be claimed (first against EIT, then PIT, or vice-versa)?


Pennsylvania will not give a resident credit for local taxes paid to another jurisdiction.  Nothing in Wynne indicated that a state has to give a credit for local taxes. In fact, at the beginning of the Wynne decision, the Court made a concerted effort to indicate that the tax for which the taxpayer was claiming a credit was a state tax, not a local tax. In light of this answer, the question regarding the order of priority for the OH local tax as a credit between PA tax and local EIT is moot.

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