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Live in Ohio, Work in Virginia: Which State Taxes Your Paycheck?

Both states — credit offsets the double taxVirginia withholds

Answer

Two returns, one credit. Virginia has the first claim on wages earned inside the state and withholds accordingly. Ohio then taxes you as a resident on everything and gives credit for what Virginia already took, capped at what Ohio would have charged on that same income.

Last verified

Without an agreement between Ohio and Virginia, the overlap is handled after the fact rather than prevented. That is why the filing order matters: the Virginia figure is an input to the Ohio return, so completing Ohio first means doing it twice.

A Ohio resident taxed by another state on the same income claims the credit for taxes paid to other states on Ohio Schedule of Credits (resident credit). The credit is capped at the Ohio tax on that income, so it removes the double tax but never refunds the excess when the other state charges more.

What you file

  1. 1Nonresident return · VirginiaForm 763

    File the Virginia nonresident return FIRST — you need the Virginia tax figure before you can complete Ohio.

  2. 2Resident return · OhioOhio Schedule of Credits (resident credit)

    File a Ohio resident return reporting all income, then claim the credit for tax paid to Virginia. The credit is capped at what Ohio would have charged on that same income, so if Virginia taxes it at a higher rate the difference is not refunded.

The two states, side by side

 OhioVirginia
Taxes wagesYes — graduatedYes — graduated
Reciprocity partners5 (Form IT 4NR)5 (Form VA-4)
Convenience ruleNoNo
Nonresident returnForm IT 1040 with Schedule IT NRCForm 763
Credit for other-state taxOhio Schedule of Credits (resident credit)Schedule OSC
Nonresident safe harbourNone publishedNone published
Local income taxYesNo
Revenue departmentOhio Department of TaxationVirginia Department of Taxation
Last verified

The other direction

Reversing the commute does not always reverse the answer. Living in Virginia and working in Ohio gives:Both states — credit offsets the double tax.

Virginia to Ohio →

Same two states, different situation

The withholding answer turns on how you are paid and where the work happens, not only on which two states are involved.

Other Ohio pairs

Questions people actually ask

I live in Ohio and work in Virginia. Which state takes the tax out of my paycheck?

Two returns, one credit. Virginia has the first claim on wages earned inside the state and withholds accordingly. Ohio then taxes you as a resident on everything and gives credit for what Virginia already took, capped at what Ohio would have charged on that same income.

Which state should my employer be withholding for?

Virginia. The wages are sourced to Virginia, so Virginia withholding is correct and there is no Ohio withholding to set up.

Will I end up paying tax twice on the same income?

Not twice over, but you will pay the higher of the two rates. Ohio gives residents a credit for tax paid to Virginia on the same income, claimed on Ohio Schedule of Credits (resident credit). The credit is capped at the Ohio tax on that income, so if Virginia taxes it more heavily the excess is not refunded by either state.

How current is this?

The Ohio and Virginia rules on this page were last checked against Ohio Department of Taxation and Virginia Department of Taxation on 2026-08-07. We re-check the full grid every December after state legislative sessions close, and re-check the convenience-of-the-employer states quarterly because that is where the rules move fastest.

Sources

Every fact above comes from the revenue department that publishes the rule. We do not cite secondary summaries, and we do not restate a figure we could not find at source.