FAQs — Individual Income Tax - Military

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

Ohio Income Tax

A nonresident servicemember cannot be taxed by Ohio on his/her military income, regardless of whether it is earned for service in Ohio or not. These amounts are deductible on Ohio Schedule A.

Additionally, a nonresident servicemember is entitled to a nonresident credit for any non-military income earned outside Ohio during the taxable year (e.g., bank interest from a savings account or personal investment income). However, a nonresident servicemember must pay Ohio tax on any non-military income that is based on activities or services in Ohio. These amounts are neither deductible nor eligible for Ohio’s nonresident credit. See R.C. 5747.05(A).

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

School District Income Tax

A nonresident servicemember is never liable for school district income tax. See R.C. 5748.01(G)(1).