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.

How is compensation, including stock options, taxed by the State of Ohio?

Compensation includes, among other things, wages, salaries, tips, nonqualified deferred compensation, and stock options. These amounts are not retirement income.

Resident individuals are taxed on all of their compensation, but are allowed a resident credit based on the amount of income taxed in other states, or the amount of tax actually paid to those other states.

Compensation earned by nonresident individuals for personal services performed in Ohio is allocated to Ohio.

See R.C. 5747.05(B), 5747.20(B)(1) and 4 U.S.C. §114.