Income tax withholding
| Imposes wage income tax | Yes |
|---|---|
| Rate structure | Flat 2.75% |
| Withholding certificate | IT 4 Employee's Withholding Exemption Certificate |
| Accepts federal Form W-4 | No |
| Convenience-of-the-employer rule | No |
| Nonresident withholding threshold | From the first dollar No state-level de minimis threshold -- Ohio state withholding applies from the first dollar of Ohio-source wages. Separately, Ohio MUNICIPAL income tax has a 20-day 'occasional entrant' safe harbor (R.C. 718.011): an employer generally need not withhold municipal tax for a non-principal-place-of-work municipality until the employee exceeds 20 days there in the calendar year. |
| Local income taxes | Yes Ohio has the most extensive local income tax system in the country -- roughly 600 municipalities and 180+ school districts levy income taxes, withheld by employers. Municipal tax is generally owed where the work is physically performed (subject to a 20-day occasional-entrant rule); school district tax is generally owed based on the employee's residence school district (Form IT 4 identifies it). CRITICAL: Ohio's state reciprocity agreements do NOT exempt a nonresident from Ohio MUNICIPAL income tax on work performed in an Ohio city. |
Reciprocity
Ohio exempts residents of 5 states from Ohio withholding, provided the employee files IT 4NR with the employer.
Confirmed on the face of Form IT 4NR (Rev. 5/07): Indiana, Kentucky, West Virginia, Michigan and Pennsylvania. State income tax only -- Ohio municipal and school district income taxes are NOT covered. Note Kentucky's side of the agreement excludes S corporation shareholder-employees owning 20% or more.
States that exempt Ohio residents
A Ohio resident working in these states files that state's certificate and is taxed only by Ohio.
Unemployment insurance and paid leave
| Taxable wage base 2026 | $9,000 2025 base was $9,000. |
|---|---|
| New employer rate | 2.7% New construction employers pay a higher industry rate than the 2.70% standard new-employer rate. |
| Experience rate range | 0.4% – 10.1% |
| Experience-rating method | reserve ratio |
| Employee UI contribution | No |
| Paid family / medical leave | No |
Employer registration
- Tax agency
- Ohio Department of Taxation
- UI agency
- Ohio Department of Job and Family Services (ODJFS)
Sources
dam.assets.ohio.gov · tax.ohio.gov · taxfoundation.org · oui.doleta.gov · oui.doleta.gov · oui.doleta.gov