Frequently Asked Questions

The Ohio Department of Taxation has compiled a list of frequently asked questions covering many different categories.

To view the questions, click on the "Select Category" bar and then click on the category you are interested in.  A list of questions will appear pertaining to that category. Then click on the question you are inquiring about and the answer will appear.

Do I need to withhold and pay school district taxes based on where an employee lives, works, or both?

The tax is based upon the employee's residency. The location where the employee works is not a factor. 

Employers are required to withhold school district income tax from the compensation paid to an employee who resides in a school district that has an income tax. Employers pay the withheld taxes to the Ohio Department of Taxation, and the taxes collected by the Department are distributed to each taxing school district.

"Resident" of the school district means: An individual who is a resident of Ohio as defined in division (I) of section 5747.01 of the Ohio Revised Code during all or a portion of the taxable year and who during all or a portion of such period of state residency, is domiciled in the school district or lives in and maintains a permanent place of abode in the school district.

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