2026 tax year · cross-border wages
Crossing a state line into or out of Ohio
Ohio taxes its residents on income earned anywhere, and taxes non-residents on work done inside it. Which return you file depends on which direction you commute.
Ohio borders 5 states. All of them work the same way for a commuter, so there is one rule to learn.
Where Ohio has a reciprocity agreement
Ohio has wage reciprocity with Indiana, Kentucky, Michigan, Pennsylvania and West Virginia. Work in one of these and it will not tax your wages at all: you file its exemption certificate with your employer there, which stops its withholding, and report everything to Ohio. There is no nonresident return.
| Work state | Exemption certificate | Its tax on your wages |
|---|---|---|
| Indiana | WH-47 | $0 |
| Kentucky | 42A809 | $0 |
| Michigan | MI-W4 | $0 |
| Pennsylvania | REV-419 | $0 |
| West Virginia | WV/IT-104R | $0 |
Kentucky attaches conditions to its agreements, not all of which apply to every partner state: Virginia residents must commute daily; Ohio residents cannot own 20%+ of an S corporation. Check which clause covers an Ohio resident before relying on it.
Reciprocity covers wages paid by an employer. It does not cover self-employment income, so a 1099 worker in Ohio generally still sources income to where the work was done.
What Ohio itself takes across a salary range
A single filer, taking the standard deduction. This is the figure every arrangement above is measured against, the tax Ohio charges a resident, whether the work happened inside the state or over a line:
| Wages | Ohio tax | Effective rate |
|---|---|---|
| $45,000 | $521 | 1.16% |
| $70,000 | $1,209 | 1.73% |
| $120,000 | $2,584 | 2.15% |
What Ohio charges as your home state
Ohio applies a single 2.75% rate to taxable income for 2026, so every extra dollar of wages is taxed at the same state rate.
Ohio exempts the first $26,050 of taxable income entirely, tax applies only to the excess above that line.
On the 2026 rate itself: converted to flat tax in 2026. Income at or below $26,050 is exempt.
Ohio also has local income tax that the estimate above does not model, many municipalities levy local income tax (0% to 3%). RITA and CCA administer most.. Add it separately for where you live and work.
State income tax on wages only, 2026 rates. Not tax advice, what this does and doesn't cover.