Calculate Your Ohio State Tax
Ohio Income Tax Rates for 2025
Ohio has one of the most taxpayer-friendly income tax systems in the United States. The state uses a 3-bracket progressive system with a generous $26,050 tax-free threshold and low rates above that.
2025 Ohio Tax Brackets (All Filing Statuses)
| Income Range | Tax Rate | Tax on Bracket |
|---|---|---|
| $0 - $26,050 | 0% | $0 (tax-free!) |
| $26,050 - $100,000 | 2.75% | Up to $2,034 |
| $100,001+ | 3.125% | 3.125% on excess |
Real Example: $75,000 Income
Let's say you make $75,000 working in Ohio:
State Tax Calculation:
- First $26,050: $0 (tax-free)
- Remaining $48,950 × 2.75% = $1,346
- Total Ohio State Tax: $1,346
- Effective State Rate: 1.79%
If you live in Columbus (2.5% local tax):
- Ohio State Tax: $1,346
- Columbus City Tax: $75,000 × 2.5% = $1,875
- Total: $3,221 (combined 4.29% rate)
Compare to living in a suburb without city tax:
- State Tax Only: $1,346 (1.79% rate)
- Savings: $1,875 per year by living outside Columbus
How Ohio Compares to Other States
| State | Tax System | Tax on $75k | Savings with Ohio |
|---|---|---|---|
| Ohio | 3 brackets (0%, 2.75%, 3.125%) | $1,346 | — |
| Pennsylvania | 3.07% flat | $2,303 | OH saves $957 |
| Michigan | 4.25% flat | $3,188 | OH saves $1,842 |
| Indiana | 3.05% flat (+ county tax) | $2,288 + county | OH saves $942+ |
| Kentucky | 4% flat | $3,000 | OH saves $1,654 |
| West Virginia | Progressive (up to 4.82%) | ~$2,800 | OH saves $1,454 |
Understanding Ohio Local Income Taxes
Unlike most states, Ohio allows cities and municipalities to levy their own income taxes. This can significantly impact your total tax burden:
| City/Area | Local Tax Rate | Combined Rate (State + Local) |
|---|---|---|
| Columbus | 2.5% | Up to 5.625% |
| Cleveland | 2.0% | Up to 5.125% |
| Cincinnati | 1.8% | Up to 4.925% |
| Toledo | 2.25% | Up to 5.375% |
| Akron | 2.25% | Up to 5.375% |
| Dayton | 2.25% | Up to 5.375% |
| Rural areas/Small towns | 0% - 1% | Up to 4.125% |
Best Places to Live in Ohio (By Income Level)
For Income $30,000 - $50,000
Recommended Cities: Youngstown, Springfield, Lima, Marion
Why: Very low cost of living, minimal or no local income tax, affordable housing ($600-$900/month for 2BR)
Tax Impact: Much of your income will fall within the $26,050 tax-free threshold. Total effective tax rate: 0.5-1.5%
Best For: Building savings, starting out, or living on a modest income comfortably
For Income $50,000 - $80,000
Recommended Areas: Columbus suburbs (Dublin, Westerville, Grove City), Cleveland suburbs (Parma, Lakewood), Cincinnati suburbs (Mason, West Chester)
Why: Great balance of amenities and taxes. Living in suburbs avoids high city taxes while keeping commute reasonable.
Tax Impact: State tax only (1.5-2.0%), saving $1,000-$1,500/year vs living in the city center
Best For: Families, professionals, anyone wanting suburban lifestyle with low taxes
For Income $80,000 - $150,000
Recommended Areas: Dublin, Westerville, Hudson, Upper Arlington, Beachwood
Why: Excellent schools, low/no local tax, great amenities, safe neighborhoods
Tax Impact: State tax 2.0-2.5% effective rate. Suburban location saves $2,000-$3,750/year vs Columbus city tax
Best For: High earners who want top schools and low taxes
For Income $150,000+
Recommended Areas: Dublin, Hudson, Upper Arlington, Hunting Valley, Powell
Why: Premium suburbs with top-rated schools, very low/no local tax, luxury amenities
Tax Impact: State tax ~2.8-2.9% effective rate (will drop to 2.5% in 2026). Avoiding Columbus 2.5% city tax saves $3,750+ per year
Best For: Executives, high-income professionals prioritizing tax efficiency and top schools
When Moving to Ohio Makes Sense
- You're moving from a higher-tax state (Michigan, Pennsylvania, Illinois, New York)
- You earn $30k-$100k (maximum benefit from low rates and tax-free threshold)
- You can live in a suburb/area with low or no local income tax
- You value low cost of living combined with low taxes
- You're retiring and want to minimize taxes on retirement income (though PA is better for pension income)
- You work remotely for a company in a higher-tax state
- You're a young professional starting out (tax-free threshold benefits lower incomes greatly)
- You need to live in downtown Columbus, Cleveland, or Cincinnati (2-2.5% additional city tax)
- You're moving from a no-tax state (Texas, Florida, Tennessee, Washington) - you'll pay more
- You have significant pension income (Pennsylvania doesn't tax retirement income at all)
- You're in the top 3.125% bracket AND live in a high-tax city (combined rate up to 5.625%)
- Your employer requires you to work in a high local tax city
Affordable Tax Filing Resources for Ohio
You don't need to spend $200-$500 on a tax preparer or expensive software. Ohio's tax system is straightforward, and these affordable options work perfectly:
Best Free & Budget Options
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Cash App Taxes - FREE for federal and Ohio state
Completely free, no hidden fees. Works great for simple Ohio tax situations. Handles the 3-bracket system easily, local tax calculations, and standard deductions. Perfect for W-2 employees, gig workers, and simple investments.
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FreeTaxUSA - $0 federal, $14.99 Ohio state
Clean interface, slightly more features than Cash App. Still drastically cheaper than TurboTax ($60+) or H&R Block ($50+). Excellent for handling Ohio local taxes and multiple income sources.
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IRS Free File - FREE (income under $79,000)
If your income is under $79,000, you qualify for completely free federal and state filing through IRS Free File Alliance partners. Check eligibility at IRS.gov/freefile
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VITA (Volunteer Income Tax Assistance) - FREE (income under $64,000)
IRS-certified volunteers provide free in-person tax preparation. Great if you prefer human help. Find locations at IRS Free Tax Prep.
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Local Enrolled Agent (EA) - $150-$400 for complex situations
If you have a complex situation (multiple states, business income, investments, local tax issues), hire a local Enrolled Agent instead of Big 4 firms. Search "Enrolled Agent [your city]" to find affordable local pros.
Ohio Tax Reform: Getting Better Every Year
Ohio has been consistently reducing taxes over the past decade. Here's what's happening:
- Top bracket reduced from 3.5% (2024) to 3.125% (2025)
- Tax-free threshold increased from $25,000 to $26,050
- Simplification to flat 2.75% (above $26,050 threshold)
- Elimination of the 3.125% top bracket
- Even simpler tax calculations
This is part of Ohio's multi-year plan to become one of the most competitive states for both individuals and businesses. The trend is clear: taxes are going down.
Frequently Asked Questions
Does Ohio tax Social Security?
No, Ohio does not tax Social Security benefits.
Does Ohio tax retirement income?
Yes, Ohio taxes other retirement income (401k, IRA, pension distributions) at the standard rates. However, the first $26,050 is tax-free, which can shield a significant portion of retirement withdrawals. Pennsylvania has a more generous retirement income exemption (no tax on any retirement income).
How do Ohio local taxes work if I live in one city but work in another?
You typically owe tax to both cities, BUT you get a credit from your home city for taxes paid to your work city. Example: If you live in a 1% tax suburb but work in Columbus (2.5% tax), you pay 2.5% to Columbus and 0% to your home suburb (because Columbus rate is higher). Net effect: 2.5% total.
Is Ohio tax-friendly for retirees?
Moderately friendly. No tax on Social Security is great. Other retirement income is taxed, but the $26,050 tax-free threshold helps. If you have pension income, Pennsylvania is more generous (zero tax on all retirement income). If you have mostly Social Security, Ohio is excellent.
Can I deduct local Ohio taxes on my federal return?
Yes, both Ohio state and local income taxes are deductible on your federal Schedule A (if you itemize). However, the SALT (State and Local Tax) deduction is capped at $10,000 total for federal purposes.
What happens if I move to Ohio mid-year?
You'll be a part-year resident and only pay Ohio tax on income earned while living in Ohio. You'll need to file returns in both states. Use the first-in, first-out method to allocate income, or use the actual method if you can track it precisely.
Do I need to pay estimated taxes in Ohio?
If you're self-employed or have significant non-W2 income, yes. Ohio requires quarterly estimated tax payments if you expect to owe more than $500. Use Ohio form IT-1040ES.
State rankings: Lowest Tax States 2025 | Best States for Retirees | States with Flat Tax | Highest Tax States 2025
Related Resources
- Pennsylvania Tax Calculator - Compare Ohio vs PA (PA: 3.07% flat, no local tax)
- Michigan Tax Calculator - Compare Ohio vs MI (MI: 4.25% flat)
- All State Tax Calculators - Compare Ohio to all 50 states
- States With No Income Tax - Alternatives to Ohio
- 2025 State Tax Reforms - What's changing across the U.S.