Ohio state taxes at a glance
| Individual income tax | Flat-rate income tax |
|---|---|
| Rate structure | Beginning with tax year 2026, Ohio Revised Code 5747.02 sets nonbusiness income tax at $332 plus 2.75% of the amount over $26,050 (no tax at or below $26,050). Taxable business income has been taxed at a separate flat 3%. Earlier years used two taxed brackets. Verify current figures. |
| Tax agency | Ohio Department of Taxation |
| Main individual return | Ohio IT 1040 (with school district return SD 100 where applicable) |
| Local income taxes | Most Ohio cities and villages levy a municipal income tax, and many school districts levy a school district income tax. These are separate from the state tax. |
| Sales tax | A state rate plus county and transit add-ons; the combined rate varies by county. |
| Property tax | Locally administered by counties; Ohio offers homestead exemptions for qualifying seniors and disabled homeowners and a property tax reduction for owner-occupied homes. |
| Retirement & Social Security | Ohio does not tax Social Security benefits. A retirement income credit may be available for eligible taxpayers; check the Department. |
Verify current-year figures: state rates, brackets, credits and filing rules change. Treat this page as a starting orientation and confirm details on the Ohio Department of Taxation website.
How Ohio income tax works
Ohio’s state income tax has changed substantially in recent years. Legislation enacted in 2025 moved the state toward a flat rate beginning with tax year 2026 and tightened eligibility for some exemptions and credits at higher incomes. Under the Ohio Revised Code as we read it, the first $26,050 of taxable nonbusiness income is not taxed, and above that the tax is $332 plus 2.75% of the excess for 2026 (for 2025 there were two taxed brackets, 2.75% and 3.125%). Because credits, exemptions and thresholds can change, verify the current-year calculation with the Department of Taxation and the instructions for your return.
Ohio taxes “nonbusiness” income differently from business income: a deduction for qualifying business income has been a long-standing feature, with a special lower rate on part of business income in some years. If you own a pass-through business or earn self-employment income, read the Department’s guidance, and see our self-employed guide for the federal side.
The state tax is only part of the picture. Most Ohio cities and villages levy a municipal income tax, commonly withheld where you work and sometimes where you live, and many school districts levy a separate school district income tax with its own return. If you live in one city and work in another, you may need to file with both and claim a credit — municipal rules differ.
Filing your Ohio return and free options
File the IT 1040 by April 15; if you live in a school district with an income tax, you also file the school district return (SD 100). Ohio’s online services handle refunds and payments, and many cities have their own online portals for municipal returns. Check the Department’s current free e-file options and our federal free filing hub — some federal partner programs include Ohio at no charge, others don’t.
Municipal returns are a frequent surprise for new Ohio residents: if your employer did not withhold city tax correctly, you may need to file and pay directly. Check your city’s tax department website for deadlines and forms.
For the federal side, see our guides to free federal filing options and the complete guide to filing taxes.
Things Ohio residents often ask about
- School district tax: not every district has one — look up yours with the Department’s lookup tool.
- Work vs. home city: the municipal tax can apply to both; rules on credits vary.
- Recent law changes: credits and exemptions were restricted for higher-income filers starting in 2026; verify before assuming you qualify.
- Refund status: see our state refund status guide.
Official Ohio links
- Ohio Department of Taxation: school district income tax
- Ohio Department of Taxation
- The Finder: school district tax lookup
- Ohio Revised Code 5747.02 (income tax rates)
- Federation of Tax Administrators: State tax agencies
Frequently asked questions
Does Ohio have a flat income tax?
Beginning with tax year 2026, Ohio Revised Code 5747.02 sets a flat 2.75% rate on nonbusiness income above $26,050 (plus a fixed $332 base amount), with no tax at or below that level. Verify current figures with the Department of Taxation.
What is the Ohio municipal income tax?
A city or village tax on earned income, often withheld at your workplace. Rates and rules vary by municipality.
Does Ohio tax Social Security?
No. Ohio does not tax Social Security benefits.
General information only — not tax, legal or financial advice. Tax figures change every year; verify the current numbers at IRS.gov or with a qualified professional. Read the full disclaimer.