I paid income tax out of state. Are there limitations on how much out-of-state tax credit I can receive against my PA local earned income tax (EIT) liability?

Yes. Credit for tax paid out of state is available only on income subject to tax both out of state and in Pennsylvania. Credit for income tax paid to non-reciprocal states must first be applied to Pennsylvania state income tax liability. Credit may not exceed PA resident local earned income tax liability, be transferred to a spouse, or be applied to next year’s tax liability.

Keystone’s e-file calculates out-of-state credits for you.