FAQs - School District: Withholding

Do I need to withhold and pay school district taxes based on where an employee lives, works, or both?

The tax is based upon the employee's residency. The location where the employee works is not a factor.

"Resident" of the school district means: An individual who is a resident of Ohio as defined in division (I) of section 5747.01 of the Ohio Revised Code during all or a portion of the taxable year and who, during all or a portion of such period of state residency, is domiciled in the school district or lives in and maintains a permanent place of abode in the school district.