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.

Does Ohio's agreement with its reciprocal states apply to stock option compensation?

Yes. Ohio has a reciprocal agreement with the five states that border Ohio. These five states are Indiana, Kentucky, Michigan, Pennsylvania and West Virginia. The reciprocal agreements provide that Ohio will not impose state income tax on compensation paid to residents of these five states. Since stock option income is compensation, that income is subject to the reciprocity agreements with these border states. 

That is, a taxpayer who earns stock option income for services in Ohio is not subject to Ohio tax on said income if the taxpayer is a resident of one of the “reciprocity states” at the time s/he receives the income.