Kentucky / Ohio tax reciprocity

No. Kentucky does not withhold its state income tax from an Ohio resident's wages under the reciprocity relationship in effect for 2026 — that income is taxed by Ohio instead. File 42A809 with your Kentucky employer to stop the withholding. Source: Kentucky Dept. of Revenue — 103 KAR 17:140, Individual income tax — reciprocity — nonresidents.

No. Ohio does not withhold its state income tax from a Kentucky resident's wages under the reciprocity relationship in effect for 2026 — that income is taxed by Kentucky instead. File IT 4 with your Ohio employer to stop the withholding. Source: Ohio Dept. of Taxation — Form IT 4, Employee's Withholding Exemption Certificate (Rev. 01/24), citing R.C. 5747.05(A)(2).

Not necessarily — reciprocity is a state income tax concept, and a local wage tax is a separate levy that can survive it. Kentucky: Kentucky local occupational license fees are not recoverable under reciprocity: Form 740-NP-R, the reciprocal-state refund return, instructs "Do not include local tax withheld." Kentucky publishes no explicit statement that local fees survive, so this rests on the refund return rather than a direct sentence. Ohio: Ohio SCHOOL DISTRICT income tax is waived — the IT 4's withholding-waiver section reads "I am not subject to Ohio or school district income tax withholding", and school district tax is residence-based, so a non-Ohio resident is not in a taxing district. Ohio MUNICIPAL income tax is a separate levy under R.C. Chapter 718 and neither the IT 4 nor the 2026 employer withholding guidelines mention it at all. That silence is recorded as unsourced, not read as a waiver.

Yes — and this calculator cannot check them for you, so confirm each one applies before relying on the figures above. Working in Kentucky while living in Ohio: Does NOT apply to an S corporation shareholder-employee who is a 20 percent or greater direct or indirect equity investor in that S corporation (effective for calendar years beginning on or after January 1, 2007).

No. Reciprocity covers employee compensation only, and the scope is set by each state's own materials rather than by a common rule — the income covered differs by partner state: Illinois, Ohio and West Virginia cover wages and salaries; Indiana adds commissions; Michigan and Wisconsin cover income from personal services. Self-employment income, rental income, gambling winnings and pass-through income are outside it, and may still require a nonresident return in the work state.