Live in Ohio, work in Kentucky
Reciprocity agreement: you pay income tax only to your home state. Give your employer the work state's exemption form so it withholds for your home state instead.
State income tax: $1,981 a year
Living in Ohio and working in Kentucky, you'd pay about $1,981 in state income tax on $100,000 of wages.
Reciprocity agreement: you pay income tax only to your home state. Give your employer the work state's exemption form so it withholds for your home state instead.
State tax at different salaries
| Wages | To KY | To OH | Total | If you worked in OH |
|---|---|---|---|---|
| $50,000 | $0 | $600 | $600 | $600 |
| $75,000 | $0 | $1,287 | $1,287 | $1,287 |
| $100,000 | $0 | $1,981 | $1,981 | $1,981 |
| $150,000 | $0 | $3,356 | $3,356 | $3,356 |
| $250,000 | $0 | $6,106 | $6,106 | $6,106 |
Single filer, all wages earned in Kentucky, 2026 state tax rules, standard deductions. Local income taxes not included.
What to do
- Reciprocity: OH residents working in KY exempt via Form 42A809, except shareholder-employees owning 20%+ of an S corporation. KY local occupational taxes still apply.
- 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.
- Kentucky: City/county occupational license taxes are levied by work location on residents and nonresidents alike (e.g., Louisville Metro ~2.2% combined, Lexington 2.25%), and are NOT covered by KY's state reciprocity agreements - OH/IN commuters into Louisville/Covington still pay them.
Frequently asked questions
Do I pay Kentucky income tax if I live in Ohio?
No. Under the reciprocity agreement you pay only Ohio. OH residents working in KY exempt via Form 42A809, except shareholder-employees owning 20%+ of an S corporation. KY local occupational taxes still apply.
Do I have to file taxes in both Ohio and Kentucky?
Usually you file only one state return (a resident return in Ohio), though some states still require a nonresident return to get a refund of any wrongly withheld tax.
Will I be taxed twice?
No. Under the reciprocity agreement only Ohio taxes your wages: about $1,981 on $100,000.
Related
- Live in Kentucky, work in Ohio
- Moving from Ohio to Kentucky
- Moving from Kentucky to Ohio
- Live in Ohio, work in Indiana
- 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.