OH-IN Tax Reciprocity 2026

OH-IN reciprocity serves commuters across the Ohio-Indiana border in the Richmond/Eaton and Ft. Recovery/Decatur corridors.

Quick answer: Yes, active reciprocity. OH residents working in IN file WH-47. IN residents working in OH file IT 4NR.

How It Works Both Directions

ScenarioForm To FileResult
Live OH, work INWH-47 (to skip IN)No IN withholding. Pay OH tax only.
Live IN, work OHIT 4NR (to skip OH)No OH withholding. Pay IN tax only.

Worked Example

Leo lives in Hamilton OH, works in Richmond IN, earns $58,000. With reciprocity: files WH-47 with IN employer. IN withholds $0 state and $0 county tax. OH withholds ~$1,450 graduated + Hamilton city tax 2.0% = $1,160. IN has mandatory county income tax that CAN be covered by reciprocity for OH residents (unusual among reciprocity states).

Step-by-Step: Claim the Exemption

  1. Download the work-state exemption form (IN form WH-47 for OH-residents-working-in-IN; OH form IT 4NR for IN-residents-working-in-OH).
  2. Fill in name, SSN, home address (must be in the reciprocity state), and current date.
  3. Submit to HR/payroll at your employer.
  4. Verify on your next paystub that work-state tax withholding is $0.
  5. Update your home-state W-4 to make sure you withhold enough for full income tax.
  6. File only a resident return in your home state next April (unless you have non-wage work-state income).

OBBBA 2026 Note

OBBBA 2026 (One Big Beautiful Bill Act) raised the federal SALT cap to $40,000. This matters for reciprocity commuters who itemize: your full home-state income tax is now more likely to be fully deductible on federal Schedule A, making the state-level tax difference between your home and work state a real after-tax driver of commute value. Check each state rate: OH top rate 3.75% (over $100K, 2025), IN top rate 2.9% flat (2026).

FAQ

Does OH-IN reciprocity cover Indiana county income tax?

Yes. Indiana’s mandatory county income tax IS covered for OH residents who file WH-47. This is unusual — most state reciprocity agreements do not extend to county/local taxes. Indiana’s county tax is unique in that it rides along state reciprocity.

What’s Indiana’s 2026 state income tax rate?

IN state rate is 2.9% flat for 2026, continuing a phased reduction from 3.05% in 2024. Further cuts to 2.7% are scheduled for 2027 if revenue triggers are met.

What form does an Indiana resident working in Ohio file?

File OH form IT 4NR (Statement of Residency). Ohio employer stops state withholding. Ohio municipal tax where the work is performed still applies and is NOT covered.

Does IN resident working in OH owe Ohio school district tax?

No. SDIT requires Ohio residency. IN residents working in OH are fully exempt from OH state AND SDIT via reciprocity.

How do I claim credit for Ohio municipal tax as an IN resident?

IN form IT-40 Schedule 6 (Offset Credits) allows a credit for taxes paid to another state, but it does NOT include Ohio municipal/city tax. Some IN counties may allow it on the county return — check local rules.

Model Your Take-Home

See exact post-reciprocity paycheck with OH or IN withholding.

Paycheck Calculator →
Other reciprocity pairs:
NJ-PA · VA-DC · MD-DC · MD-VA · MD-PA · PA-OH · Full matrix

Tax calculations are estimates for educational and informational purposes only. This site does not provide tax, legal, or financial advice. Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. Data sourced from IRS publications and official state tax authority websites.

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