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Kentucky Local Tax?

Does Kentucky levy a local tax on where you live or where you work? A friend of mine lives in Ohio and works in Kentucky but had local Kentucky tax withheld from his pay (Boone County). Can he file a local return and get it back since he doesn't live there, or must he forfeit the withholdings?

Update:

tma, very nice answer. He did this already and the state of Kentucky is not taxing him...Ohio is. But, for "local" taxation, Kentucky is still taxing him. Any thoughts?

2 Answers

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  • tma
    Lv 6
    1 decade ago
    Favorite Answer

    Kentucky has a reciprocity agreement with Ohio in that he can elect to have his Kentucky wages taxed in his home state (Ohio). He would have to file form 740-NP-R for a refund of all Kentucky taxes withheld.

    http://revenue.ky.gov/NR/rdonlyres/7973DFD0-A6B1-4...

  • 6 years ago

    KY is not taxing him. The withholding is for the county where he works (you said Boone Co.) That local withholding is based on the fact he is working in Boone County, and is paid to Boone County. Different localities have different rules. Some counties do not tax, some do, some cities/towns tax do not tax, some do. It is based on where you work. It has nothing to do with the state and it will not be refunded by the State of Kentucky. Here is a link to the 2015 Boone County rates.

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