FAQs - Individual Income Tax

I am an Ohio resident and am currently serving on active duty as a military servicemember. Am I subject to Ohio individual income tax and school district income tax?

Ohio Income Tax

Generally, all income earned by Ohio residents is subject to Ohio individual income tax.  However, Ohio law allows military servicemembers to deduct on Ohio Schedule A any active duty military pay and allowances that were received while the servicemember was stationed outside of Ohio. Thus, Ohio resident servicemembers stationed outside Ohio are not liable for either Ohio income tax.

However, military pay and allowances received by Ohio residents while stationed in Ohio are not eligible for this deduction.  

You can use the following chart to determine how a resident military servicemember should treat his/her income for Ohio tax purposes:

See R.C. 5747.01(A)(24).

School District Income Tax

If the servicemember resides in a taxing school district, then his/her income is subject to school district income tax. However, if the servicemember is a resident of the school district, but is stationed outside of Ohio, then his/her military pay is not subject to school district income tax. See R.C. 5748.01(E)(1) and (G)(1).