Live in Ohio, work in Indiana
Reciprocity agreement: Indiana doesn't tax your wages at the state level, so Ohio taxes them. Indiana county income tax still applies (Form IT-40RNR). Give your employer Form WH-47 so it stops withholding Indiana state tax; it still withholds the county tax.
State income tax: $3,615 a year
Living in Ohio and working in Indiana, you'd pay about $3,615 in state income tax on $100,000 of wages, $1,634 more than if you worked in Ohio.
Reciprocity agreement: Indiana doesn't tax your wages at the state level, so Ohio taxes them. Indiana county income tax still applies (Form IT-40RNR). Give your employer Form WH-47 so it stops withholding Indiana state tax; it still withholds the county tax.
State tax at different salaries
| Wages | To IN | To OH | Total | If you worked in OH |
|---|---|---|---|---|
| $50,000 | $809 | $600 | $1,408 | $600 |
| $75,000 | $1,221 | $1,287 | $2,508 | $1,287 |
| $100,000 | $1,634 | $1,981 | $3,615 | $1,981 |
| $150,000 | $2,459 | $3,356 | $5,815 | $3,356 |
| $250,000 | $4,109 | $6,106 | $10,215 | $6,106 |
Single filer, all wages earned in Indiana, 2026 state tax rules, standard deductions. State income tax includes Indiana's average county income tax, which reciprocity does not cover (Form IT-40RNR; no Ohio credit for it is assumed). Other local income taxes are not included.
What to do
- Reciprocity: OH residents working in IN exempt from IN state tax on wages; file Form WH-47 (Certificate of Residence).
- Your employer still withholds Indiana county tax. File Indiana Form IT-40RNR each year to settle it, along with your Ohio resident return.
- 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. 20-day occasional-entrant rule before work-city withholding starts. 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: Reverse-credit arrangements (notably AZ, CA, OR): IN nonresidents from those states claim credit on the IN nonresident return. Separately, IN county income tax is owed by nonresidents on IN-sourced wages (county of principal employment).
Frequently asked questions
Do I pay Indiana income tax if I live in Ohio?
No Indiana state income tax: under the reciprocity agreement Ohio taxes your wages. Indiana county income tax still applies, though: about $1,634 on $100,000 at the average county rate, filed on Form IT-40RNR. OH residents working in IN exempt from IN state tax on wages; file Form WH-47 (Certificate of Residence).
Do I have to file taxes in both Ohio and Indiana?
Usually yes: Indiana's reciprocal nonresident return (Form IT-40RNR) for the county tax, and your resident return in Ohio for the state tax on your wages.
Will I be taxed twice?
Not at the state level: under the reciprocity agreement only Ohio taxes your wages. Indiana county tax still applies, so your total is about $3,615 on $100,000 ($1,981 to Ohio and $1,634 in Indiana county tax).
Related
- Live in Indiana, work in Ohio
- Moving from Ohio to Indiana
- Moving from Indiana to Ohio
- Live in Ohio, work in Kentucky
- Live in Ohio, work in Michigan
- Live in Ohio, work in Pennsylvania
- Live in Ohio, work in West Virginia
Rules reviewed 2026-09-24 from state revenue departments and the Tax Foundation. Estimates only; confirm with each state's revenue department.