How Much Is Ohio State Income Tax in 2026?

Quick Answer: 0% Then a Flat 2.75%

For the 2026 tax year, how much is Ohio state income tax? The answer is a flat 2.75% on nonbusiness income above $26,050. Income at or below $26,050 is taxed at 0%. There is no separate standard deduction — the zero-rate bracket itself functions like a deduction for everyone, regardless of filing status.

For a single filer earning $100,000, the estimated take-home pay is roughly $77,146 after federal tax, FICA, and Ohio state tax — before any local city or school district income tax. That is more than workers keep in New York, Illinois, or California, though less than in no-tax states like Florida or Texas.

How Ohio Taxes Your Income in 2026

Ohio's 2026 structure is the result of a multi-year phase-down. Under House Bill 96, signed by Governor Mike DeWine on June 30, 2025, the former top bracket of 3.5% was eliminated and the 2.75% bracket became the only rate for taxable income above the threshold. Key facts:

• The first $26,050 is tax-free. This applies to nonbusiness income for all filing statuses. A married couple filing jointly does not get a larger zero bracket — the $26,050 is per return.
• Everything above $26,050 is taxed at 2.75%. Whether you earn $40,000 or $400,000, the state rate above the threshold is the same.
• Personal exemptions remain. Ohio allows a personal exemption of $2,400 per person for taxpayers with Ohio adjusted gross income of $40,000 or less. The exemption phases down at higher incomes and is eliminated above $80,000.
• Business income has its own rules. Ohio's Business Income Deduction allows a 100% deduction of up to $250,000 of business income per owner, with a flat 3% tax on business income above that. Most wage earners do not need to worry about this.

Local Income Taxes: The Hidden Layer

Ohio has more than 600 municipalities and school districts that levy local income taxes. This is the biggest variable in your total Ohio tax bill. Rates and rules are administered by Regional Income Tax Agency (RITA), Central Collection Agency (CCA), and individual municipalities.

• Typical combined resident rate: about 1.5% to 2.5% of wages, split between the city where you live and the school district.
• Columbus: 2.5% resident income tax.
• Cleveland: 2.5% resident income tax.
• Akron: 2.5% resident income tax.
• Cincinnati: approximately 1.8% combined rate.
• Toledo and Dayton: roughly 2.25% combined.

If you work in a different city than where you live, your employer usually withholds based on the work location, and you may owe or receive a credit when you file. Always check your local RITA or CCA rate for the exact figure.

Ohio Salary After Taxes: Take-Home Pay by Income Level

Here is what a single filer in Ohio can expect to keep in 2026. These estimates use the 2026 federal standard deduction of $16,100, FICA, Ohio's $2,400 personal exemption (where applicable), and the 2.75% Ohio rate applied after the $26,050 tax-free threshold. Local city taxes are not included.

Ohio vs. Other States

At $100,000 of income, here is how Ohio compares with nearby and high-population states:

Ohio beats Pennsylvania, Illinois, New York, and California on state income tax alone, but local taxes can close much of that gap. Total property and sales tax burdens also differ, so the full cost-of-living picture depends on your city and home value.

Retirement Income and Social Security

Ohio is moderately tax-friendly for retirees:

• Social Security: Fully exempt from Ohio income tax.
• Other retirement income: Pensions, 401(k) distributions, and IRA withdrawals are taxed as ordinary income, but Ohio offers a retirement income credit of $25 to $200 per return depending on the amount of qualified retirement income received. The maximum $200 credit applies when qualified retirement income reaches $8,000 or more.
• Local taxes: Some school district income taxes exclude retirement distributions, while others do not. Check your specific district.

Ohio is not as generous as Pennsylvania (which exempts all retirement income) or Georgia (which allows large retirement exclusions), but the low 2.75% state rate keeps the burden manageable for most retirees.

How to Pay Less Tax in Ohio

• Max out pre-tax retirement contributions. Traditional 401(k) and 403(b) contributions reduce your federal taxable income. In 2026, the employee limit is $24,500, with an additional $8,000 catch-up for those 50+. Because Ohio starts from federal AGI, these contributions also reduce your Ohio taxable income.
• Use an HSA if eligible. HSA contributions avoid federal income tax and FICA. The 2026 limits are $4,400 for individual coverage and $8,750 for family coverage, plus a $1,000 catch-up at age 55+.
• Check your local tax rate before moving. Choosing a home just outside a high-tax city or school district can save hundreds or thousands of dollars per year.
• Claim the retirement income credit. If you receive pension or retirement account distributions, make sure to claim the credit on your Ohio return.
• Time business income if you are self-employed. The first $250,000 of Ohio business income per owner is fully deductible, with only excess amounts taxed at 3%.

2026 Federal Tax Basics

Ohio's 2.75% is only part of the picture. Federal tax is usually the biggest withholding item:

• Standard deduction: $16,100 for single filers, $32,200 for married filing jointly.
• Federal brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
• FICA: 6.2% Social Security on wages up to $184,500, plus 1.45% Medicare on all wages. Earners above $200,000 pay an additional 0.9% Medicare surtax on the excess.

For a single filer earning $100,000, federal tax plus FICA ($20,820 combined) is roughly 10.2 times the Ohio state tax ($2,034).

Frequently Asked Questions