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 (border) states apply to stock option compensation?

Yes. Ohio has agreements with Indiana, Kentucky, Michigan, Pennsylvania and West Virginia (the "reciprocity states"). The agreements prevent Ohio from taxing compensation received by residents of these reciprocity states. The agreements also prevent the reciprocity states from taxing compensation of Ohio residents.

Because stock option income is compensation, a taxpayer who receives stock option income while a resident of a reciprocity state is not subject to Ohio tax on the income, even if it was earned for services performed in Ohio.

See R.C. 5747.05(A)(2) and 5747.20(B)(1).