Reciprocity state pair

Live in Indiana, work in Ohio

Eligible Indiana-resident employee wages are taxed by Indiana and exempt from Ohio state income tax. Indiana county tax and Ohio municipal taxes require separate checks.

By Abu HasnatPage updated Nov 7, 2026Data: Indiana and Ohio revenue departments (methodology)

Choose your next step

Payroll starting point: Ohio IT 4, Section III reciprocity exemption (opens in new tab). Use the Indiana-resident reciprocity exemption, not a city-tax exemption. The combined IT 4 replaced IT 4NR.

Official tax guidance for both states

Check withholding, filing requirements and current forms with each state's tax agency.

Indiana: Indiana Department of Revenue (opens in new tab)
Ohio: Department of Taxation (opens in new tab)

Agency directory checked 2026-10-01 against the IRS state-government directory. This verifies the agency links, not an individual tax result. Use forms for the year you are filing.

Before you use this estimate

This model assumes a full-year resident of Indiana, ordinary employee wages and all workdays physically in Ohio. Check exemption eligibility before treating a work-state amount of $0 as your own result. Withholding is a prepayment, not final tax liability. Other income, a move during the year, remote work and separate local taxes or credits can change the result.

Wage-exemption conditions: IN residents working in OH are exempt from Ohio state tax on covered wages; give the employer the current combined Form IT 4, selecting the reciprocity exemption in Section III. The combined form replaced IT 4NR. Special rules for 20%+ pass-through-entity owner compensation and Ohio municipal taxes require a separate check.

This pair's wage-exemption or credit guidance checked 2026-10-14. Individual return calculations and other source dates are separate.

I live inI work inAnnual wages ($)Filing status

State income tax: $4,554 a year

Modeled annual state income tax for living in Indiana and working in Ohio: about $4,554 on $100,000 of wages.

Limits of this estimate:

Indiana's county component uses an illustrative 1.65% average, not your actual January 1 residence-county rate; local credits are not calculated.

Reciprocity agreement: covered employee wages are subject to state income tax only in your home state. Give your employer the work state's exemption form and arrange home-state withholding. County and city taxes require a separate check.

Conditions for this pair: IN residents working in OH are exempt from Ohio state tax on covered wages; give the employer the current combined Form IT 4, selecting the reciprocity exemption in Section III. The combined form replaced IT 4NR. Special rules for 20%+ pass-through-entity owner compensation and Ohio municipal taxes require a separate check.

Official guidance (dam.assets.ohio.gov) (opens in new tab) · Official guidance (tax.ohio.gov) (opens in new tab)

Tax guide and official sources: live in Indiana, work in Ohio

Official agency starting points: Indiana tax agency (opens in new tab) · Ohio tax agency (opens in new tab). These directory links identify the selected states' agencies, not your filing obligations. Check their individual-tax guidance and forms for the year you are filing.

Tax to Ohio

nonresident

Tax to Indiana

$4,554

resident

Total state tax

$4,554

Typical state returns

This is the usual filing pattern, not a determination that you must file. Filing thresholds, age or dependent status, other income and withholding refunds can change which returns you need.

How this $100,000 estimate adds up

These steps follow the selected home, work state, salary and filing status. They reconcile the model's annual liability, not the amounts withheld from your paycheck.

Modeled state income tax for Indiana residence and Ohio work
Step	Ohio work state	Indiana home state
Tax before the modeled other-state credit	$0	$4,554
Modeled other-state credit subtracted	$0	$0
Tax after that credit	$0	$4,554

Total: $0 + $4,554 = $4,554 a year. Amounts are rounded for display. Work-state wage exemptions, when applicable, are already reflected in the first row; they are not an other-state credit.

No other-state credit is subtracted in this selected scenario. Included county components stay in these amounts; excluded local taxes and credits stay excluded. Federal income tax, payroll programs and refund eligibility are outside this reconciliation.

State tax at different salaries

Wages	To OH	To IN	Modeled total	If you worked in IN
$50,000	$0	$2,254	$2,254	$2,254
$75,000	$0	$3,404	$3,404	$3,404
$100,000	$0	$4,554	$4,554	$4,554
$150,000	$0	$6,854	$6,854	$6,854
$250,000	$0	$11,454	$11,454	$11,454

Single filer, all wages earned in Ohio, 2026 state tax rules, standard deductions. State income tax includes Indiana's average county income tax. Other local income taxes are not included.

From paycheck withholding to your returns

Withholding: Give Ohio payroll the current Ohio IT 4 and select the reciprocity exemption in Section III for an Indiana resident. The combined IT 4 replaced IT 4NR. Arrange Indiana state and resident-county withholding or estimates separately; Ohio municipal withholding can still apply.
Returns: File Indiana IT-40 with the applicable county schedule. A full-year Indiana resident whose only Ohio-source income is covered employee wages generally does not need an Ohio return unless claiming a refund. If Ohio state tax was withheld, file Ohio IT 1040 with the reciprocity-wage deduction and Schedule of Ohio Withholding. In the published 2025 instructions, the deduction is Schedule of Adjustments line 14; use the form for the year being filed. Include the required W-2 evidence and keep city and school-district withholding out of the Ohio state claim. Other Ohio income can require a state return. A workplace municipal return or refund is separate.
Credit or refund: Covered wages are exempt from Ohio state income tax under reciprocity. Recover erroneous Ohio state withholding rather than claiming it as eligible Indiana state tax paid. Indiana's credit for eligible local taxes paid outside Indiana is a separate county-tax credit; this calculator does not calculate it.

Worked example: $100,000 of wages

Single filer, full-year resident of Indiana, all work performed in Ohio, no other income, standard deductions and modeled personal exemptions. Covered wages are exempt from Ohio state income tax under wage reciprocity. Pay a modeled $4,554 to Indiana, total $4,554. This exemption is not an other-state tax credit.

On $100,000 with a $1,000 modeled Indiana exemption: ($100,000 − $1,000) × 2.95% = $2,920.50 Indiana state tax, plus $1,633.50 county tax at the illustrative 1.65% rate, total $4,554. Ohio state tax on covered wages is $0; Ohio municipal tax and an Indiana local credit are not modeled.

Annual liability, not paycheck withholding or a refund estimate. Federal tax, payroll programs, other local taxes, special credits and part-year residency are excluded. State income tax includes Indiana's average county income tax. Other local income taxes are not included.

Remote-work and local exceptions

Full-year Indiana resident, W-2 compensation only, all workdays in Ohio. Indiana resident county tax uses an illustrative 1.65% average, not the January 1 residence county's actual rate. Ohio workplace municipal tax and any Indiana local-credit eligibility are excluded. A hybrid schedule or other income needs separate sourcing and local-rule checks.

Official forms and instructions

Source audit 2026-10-21. Use the return and instructions for the year you are filing; a current-forms link may still show a prior-year return. Official sources checked; not independently reviewed.

Prepare your IN → OH filing document packet

Match the task to the records and official instructions before entering a state return. This is for someone who lives in Indiana and works in Ohio; reversing those states can change the forms and credit direction.

What to collect and which official instructions to open
Your task	Have ready and check	Official starting point
Set up future Ohio state withholding	Confirm Indiana residence with payroll and keep the completed certificate. Check Ohio city withholding separately.	Ohio IT 4, Section III (opens in new tab)
Check an Ohio state-withholding refund	Have the W-2 showing Ohio state withholding and the instructions for the year being filed. Ohio municipal withholding belongs to a separate claim.	Ohio IT 1040 instructions (opens in new tab)
Prepare Indiana state and county figures	Gather the federal return, W-2s, January 1 residence county and proof of eligible local taxes paid elsewhere. Erroneous Ohio state withholding is not an Indiana other-state credit.	Indiana return forms (opens in new tab) Indiana local-credit limits (opens in new tab)

Use the return edition for the year being filed; a linked source may still show a prior-year form. Actual withholding, other income and completed returns determine a balance or refund. For a move during the year or a different work pattern, check the route exceptions and moving-year tax guide. Keep these records privately; the calculator does not need your tax documents or personal identifiers.

Check Ohio and Indiana amounts on your W-2

The IRS W-2 instructions (opens in new tab) describe boxes 15–17 for state information and boxes 18–20 for local wages, income tax and locality. Match each amount to the state or locality shown; ask payroll about unclear or missing entries. More than one W-2 may be needed when there are additional jurisdictions.

Ohio state withholding: If Ohio state tax was withheld on eligible reciprocal wages, review the Ohio refund steps and the Ohio instructions for the filing year. The state wage exemption does not make city withholding part of a state refund.
Ohio local withholding: Identify the municipality and compare its reported wages and withholding with your records of where you worked. Check the municipality's own filing and refund rules; the calculator does not determine your city tax.
Indiana state and county amounts: Compare the Indiana entries with your payslips and the county where you lived on January 1. The calculator's county rate is an illustration, not your actual rate; check the separate local-credit rules before filing.

The W-2 reports wages and withholding, not your final liability or refund. Keep the statement and work-location records; do not send personal tax documents through the site's correction form.

What to do

Keep a record of the days you work in each state, especially if you sometimes work from home.

Local income taxes

Ohio: ~600+ municipalities levy income tax on wages at work location (commonly 1-2.5%; e.g., Columbus 2.5%, Cleveland 2.5%, Cincinnati 1.8%), regardless of state reciprocity. Residence city may also tax, with a full/partial/no credit for work-city tax depending on the city. An eligible 20-day occasional-entrant withholding exception can apply to work in another municipality; the principal work location and certain long-term worksites can require withholding from the first day. Small-employer and other rules may differ. Check with payroll and the municipality. Many school districts also levy a resident-only income tax.
Indiana: Every Indiana county levies a local income tax. Indiana residents pay the rate of the county they live in on January 1. People who live in another state pay the tax of the Indiana county where they principally work on January 1, and that includes residents of reciprocity states (KY, MI, OH, PA, WI) who file Form WH-47: the reciprocity agreements cover only the state tax.

Special credit rules

IN: Indiana county tax is separate from state wage reciprocity and state-tax credits. Another state's state-tax credit does not offset Indiana county tax; any eligible credit for out-of-state local tax is separate and is not modeled.

Frequently asked questions

Do I pay Ohio income tax if I live in Indiana?

If you qualify for the wage-reciprocity exemption, no Ohio state income tax on covered employee wages: under reciprocity Indiana taxes them. City and county taxes require a separate check. IN residents working in OH are exempt from Ohio state tax on covered wages; give the employer the current combined Form IT 4, selecting the reciprocity exemption in Section III. The combined form replaced IT 4NR. Special rules for 20%+ pass-through-entity owner compensation and Ohio municipal taxes require a separate check.

Do I have to file taxes in both Indiana and Ohio?

File Indiana IT-40 with the applicable county schedule. A full-year Indiana resident whose only Ohio-source income is covered employee wages generally does not need an Ohio return unless claiming a refund. If Ohio state tax was withheld, file Ohio IT 1040 with the reciprocity-wage deduction and Schedule of Ohio Withholding. In the published 2025 instructions, the deduction is Schedule of Adjustments line 14; use the form for the year being filed. Include the required W-2 evidence and keep city and school-district withholding out of the Ohio state claim. Other Ohio income can require a state return. A workplace municipal return or refund is separate.

Will I be taxed twice?

Not at the state level on covered wages: under reciprocity Indiana taxes them, about $4,554 on $100,000 in this model. The estimate includes resident county tax where modeled; other local taxes or credits are separate.

Rules reviewed 2026-09-24 from state revenue departments and the Tax Foundation. Estimates only; confirm with each state's revenue department.