Ohio Income Tax Calculator 2026

Ohio’s new 2.75% flat income tax

Starting with tax year 2026, Ohio taxes nonbusiness income at a single 2.75% rate on income over $26,050, and income up to $26,050 is not taxed. In 2025 Ohio still had a second bracket of 3.125% above $100,000. Business income is treated separately: after the business income deduction, taxable business income has been taxed at a flat 3% since 2016.

Ohio has no standard deduction. Instead, you subtract a personal and dependent exemption for each person on the return, worth more at lower incomes.

Worked example: $60,000 single filer

A single filer with $60,000 of wages falls in the $2,150 exemption tier. Ohio taxable income is $60,000 − $2,150 = $57,850.

• The first $26,050 is taxed at 0%.
• The remaining $31,800 is taxed at 2.75%: $875.
• Effective state rate: 1.46%. A 2.0% city tax on the same wages would add $1,200 — more than the state tax.

Ohio credits that reduce your bill

Ohio’s 2025 return offered the credits below. Many depend on “MAGI less exemptions,” so check the current-year instructions when you file:

• Earned income credit: 30% of your federal EIC, nonrefundable.
• Joint filing credit: 5% to 20% of tax (up to $650) for married couples filing jointly where each spouse has at least $500 of qualifying income.
• Retirement income credit: up to $200 per return for pension, IRA or 401(k) income received on account of retirement, when MAGI less exemptions is under $100,000.
• Senior citizen credit: $50 per return for taxpayers 65 or older with MAGI less exemptions under $100,000.
• Exemption credit: $20 per exemption when MAGI less exemptions is under $30,000.

Retirement income and Social Security

Social Security and railroad retirement benefits are deducted on the Ohio Schedule of Adjustments, so they are not taxed. Uniformed services retirement income is also deductible. Pension, IRA and 401(k) income is taxable but can qualify for the retirement income credit described above. With the $26,050 zero bracket, many retirees with modest pensions owe little or no Ohio tax.

Filing deadlines and school district returns

Ohio income tax (Form IT 1040) and school district income tax (Form SD 100, if you live in a taxing district) are due April 15. A federal extension extends the Ohio filing date, but not the payment date. Municipal income tax returns are filed separately with your city or its collection agency.