Doug Mastriano, the state senator for Pennsylvania’s 33rd District, announced that his legislation to eliminate double taxation through an income tax credit for residents working out of state has advanced past the Senate Finance Committee. The statement was made on X.
“I would like to express my sincere gratitude to the Senate Finance Committee for approving my bill,” said Douglas Vincent Mastriano, Pennsylvania State Senator from 33rd District (R). “This bill aims to provide an income tax credit that eliminates double taxation. It is designed to create a fairer business environment for all companies in Pennsylvania. You will receive a credit for the taxes paid in that state.”
Pennsylvania has recently undertaken legislative efforts to address income tax and interstate taxation complexities. In October 2024, Governor Josh Shapiro signed Senate Bill 1051, which reformed the process for resolving tax disputes, including those related to personal income taxes. According to the new law, it extends the time for the Commonwealth’s Board of Finance and Revenue to consider late appeals, potentially impacting cases involving dual taxation. Additionally, the Pennsylvania Department of Revenue has emphasized the importance of reciprocal agreements with neighboring states to mitigate double taxation for residents working across state lines.
While specific data on the number of Pennsylvania residents working in other states and subject to dual taxation is limited, the issue remains significant. Pennsylvania has entered into reciprocal agreements with neighboring states like New Jersey, allowing residents to pay income tax only in their state of residence. However, residents working in states without such agreements may face dual taxation, necessitating careful tax planning and awareness of available credits to mitigate the financial impact.
Across the United States, states employ various strategies to address interstate income tax credits and prevent double taxation. Many states offer credits for taxes paid to other states, designed to avoid taxing the same income twice. For instance, Oregon allows residents to claim a credit for taxes paid to other states, though the credit may not fully offset the tax liability if the other state’s tax rate is higher.
Mastriano is a member of the Pennsylvania State Senate, representing the 33rd district since 2019. A retired U.S. Army colonel, he served from 1986 to 2017 and participated in both the Gulf War and Iraq War. He holds multiple degrees, including a Ph.D. from the University of New Brunswick.
