What states have tax reciprocity with Ohio?
The five reciprocity states that share a border with Ohio are Indiana, Kentucky, Michigan, Pennsylvania, and West Virginia. 2 I am an Ohio employer and I have an employee working in Ohio that lives in a state other than Ohio. Must I withhold Ohio income tax from their wages?
Do you pay city taxes where you live and work in Ohio?
If I live and work in 2 different cities in Ohio, will city taxes for both be taken out of my paycheck? By law, your employer is only required to withhold for the work location city, although many will voluntarily withhold for the resident city as well. You normally only have to file a return in the city you live in.
How do Ohio city taxes work?
If you live in one Ohio city but work in another, you get credit from the city you live in for the tax withheld from the city in which you work. If there is a difference in the tax rate between those two cities, then you do pay the difference when you file your tax return.
Do you have to pay Michigan income tax if you work out of State?
Likewise, a Michigan resident working for an employer in a reciprocal state may ask his or her employer to voluntarily withhold Michigan income taxes. That out-of-state employer may register for withholding with the Michigan Department of Treasury, but is not required to.
Are there reciprocal agreements between Ohio and Michigan?
Michigan has entered into reciprocal agreements with the following states: Wisconsin, effective October 1 st, 1967. Indiana, effective January 1 st, 1968. Kentucky, effective January 1 st, 1968. Illinois, effective January 1 st, 1971. Ohio, effective January 1 st, 1972. Minnesota, effective January 1 st, 1984.
What to do if you live and work in 2 different states?
There are different exemption forms to fill out depending on your state: Talk to your HR representative to obtain your correct form, or find your exemption form here. Note: Even if you live and work in states that have a reciprocal agreement with each other, the reciprocal agreement only covers employment income.
