Pennsylvania Form PA-40 Schedule NRH – Nonresident Apportionment (2026)

Last reviewed: 2025-11-09

Use the Pennsylvania Tax Form Calculator Pennsylvania Form PA-40 Schedule NRH – Nonresident Apportionment as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 Pennsylvania state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.

Schedule NRH determines how much of a nonresident’s or part-year resident’s income is Pennsylvania-source income and therefore subject to Pennsylvania’s 3.07 % personal income tax. If you lived or worked outside Pennsylvania during part of the year, you must apportion your wages or business income between Pennsylvania and other jurisdictions using this form.

Two methods are available: the working-day basis for wage earners and the business-volume basis for self-employed individuals or business owners. The resulting percentage defines the portion of total income taxable to Pennsylvania, which you then report on your PA-40 return.

How to Complete Schedule NRH

Step 1 – Working-Day Basis (Part A): Employees list total days in the tax year (Line 1), subtract weekends, holidays, and leave days (Lines 2a–2c), then calculate working days (Line 3). Divide Pennsylvania workdays (Line 4) by total working days to find the apportionment fraction (Line 5).

Step 2 – Business-Volume Basis (Part B): If compensation depends on revenue or client activity, divide total Pennsylvania business volume (Line 7) by total business volume (Line 6). This yields the fraction on Line 8 – you may use either the working-day or business-volume basis, but not both.

Step 3 – Apply Apportionment (Parts C–E): Multiply your total wages or self-employment income (Line 9 or 6) by the applicable fraction (Line 5 or 8). Enter the apportioned income on the corresponding line of your PA-40. Use Part D to apportion unreimbursed employee expenses and Part E to calculate net PA-taxable compensation.

Step 4 – Business/Farm Income (Section II): If you operated a trade, profession, or farm in and outside Pennsylvania, use the three-factor formula (real estate, payroll, and sales) to determine the share of profits reportable to PA (Line 7).

Examples and Scenarios

Example 1 – Nonresident Employee: Taylor, a New York resident, worked 220 days in 2025 with 55 days in Pennsylvania. The working-day fraction is 55 ÷ 220 = 0.25. With $60 000 total wages, $15 000 is PA-source income. Taxable on PA-40 Line 1a = $15 000 × 3.07 % = $461.

Example 2 – Part-Year Resident Consultant: Dana moved to PA mid-year. Of $80 000 total consulting revenue, $30 000 was earned after moving. The business-volume fraction is 0.375, so $30 000 is PA-source income reported on PA-40 Line 4 (net profits).

Example 3 – Multi-State Business: A contractor operates in PA and MD with $100 000 receipts ($40 000 in PA). The apportionment fraction is 0.4; PA-source income = $40 000. This amount is included on PA-40 Line 4 and taxed at 3.07 %.

Further Guidance and Related Forms

• Form PA-40 – Individual Income Tax Return
• Schedule UE – Unreimbursed Employee Expenses
• Pennsylvania Department of Revenue – PIT Forms

Schedule NRH ensures nonresidents and part-year residents pay tax only on income earned within Pennsylvania. Maintain records such as employer letters, work-day logs, sales summaries, and contracts to substantiate your apportionment should verification be requested.

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Important Notes

All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.