About Ohio State Income Tax

Ohio uses a progressive tax system with four tax brackets. The state has significantly reduced income tax rates over the past decade, making it one of the more tax-friendly states in the Midwest.

Ohio Tax Brackets 2026

• $0 - $26,050: 0% (No tax on first $26,050)
• $26,051 - $46,100: 2.75%
• $46,101 - $92,150: 3.10%
• $92,151 - $115,300: 3.48%
• Over $115,300: 3.76%

How Ohio Tax is Calculated

Ohio uses a progressive bracket system:

1. The first $26,050 of income is tax-free
2. Income above that is taxed at increasing rates
3. You only pay the higher rate on income within each bracket
4. Federal tax is calculated separately based on IRS brackets

Ohio Tax Benefits

• Zero Tax on First $26K: No state tax on the first $26,050 of income
• Low Maximum Rate: Top rate of only 3.76% is lower than many states
• Recent Reductions: Ohio has cut income taxes significantly since 2005
• Retirement Income: Social Security benefits are not taxed

Frequently Asked Questions

What is Ohio's income tax rate?

Ohio has progressive tax rates ranging from 0% on the first $26,050 to 3.76% on income over $115,300. This makes Ohio one of the lower-tax states in the region.

Does Ohio tax Social Security benefits?

No, Ohio does not tax Social Security retirement benefits, making it an attractive state for retirees.

Are there local income taxes in Ohio?

Yes, many Ohio cities and school districts impose their own local income taxes, typically ranging from 0.5% to 3%. This calculator shows only state and federal taxes.

How does Ohio tax compare to neighboring states?

Ohio (max 3.76%) is competitive with Indiana (3.23% flat), lower than Michigan (4.25%), and much lower than states like Illinois (4.95%) and Pennsylvania (3.07% but with local taxes).

Ohio vs. Neighboring States

Ohio's tax structure is relatively favorable compared to its neighbors:

• Pennsylvania: 3.07% flat rate (but higher local taxes)
• Michigan: 4.25% flat rate
• Indiana: 3.23% flat rate
• Kentucky: 4.5% flat rate
• West Virginia: Progressive up to 6.5%

Tips for Ohio Taxpayers

• Take advantage of the $26,050 zero-tax threshold
• Contribute to retirement accounts to reduce taxable income
• Check for municipal income tax obligations in your city
• Review available credits like the Joint Filing Credit
• Consider Ohio's low tax burden when planning retirement