Ohio has one of the simplest and most taxpayer-friendly income tax systems in America: 0% on the first $26,050, then 2.75% on income above that threshold. Major cities exception: Columbus, Cleveland, Cincinnati, and many other Ohio cities impose local income taxes of 1.5-2.5%, bringing combined marginal rates to roughly 4.5-5.25% for residents of those cities.
Why so simple? Ohio has cut and consolidated its brackets in steps: for 2025 the schedule was 0%, 2.75% and 3.125%, and House Bill 96 (2025) moves 2026 to a single 2.75% rate above $26,050. The goal was to compete with neighboring states and reduce outmigration.
How it compares:
Local taxes: 200+ Ohio municipalities impose local income taxes (1-2.5%). Columbus 2.5%, Cleveland 2.5%, Cincinnati 1.8%, Toledo 2.5%, Akron 2.5%. These are NOT optional - city residents and commuters pay them.
Source: Ohio Department of Taxation - Personal Income Tax Rates
Note: These are marginal rates — you only pay the higher rate on income within each bracket.
Source: Ohio Department of Taxation
Here's what Ohio residents actually pay at different income levels (2026, single filer, standard deduction):
| Annual Income | Federal Tax | State Tax | Total Tax | Take-Home Pay | Effective Rate |
|---|---|---|---|---|---|
| $50,000 | $3,820 | $932 | $4,752 | $45,248 | 9.5% |
| $75,000 | $7,670 | $1,619 | $9,289 | $65,711 | 12.4% |
| $100,000 | $13,170 | $2,313 | $15,483 | $84,517 | 15.5% |
| $150,000 | $24,734 | $3,688 | $28,422 | $121,578 | 18.9% |
| $250,000 | $51,304 | $6,438 | $57,742 | $192,258 | 23.1% |
Note: Includes federal and state income tax only. Does not include FICA (Social Security/Medicare), which adds 7.65% for employees.
Key takeaway: At $100K, Ohio takes $2,313 in state tax alone.
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Migration Trends: Exact state-to-state flows vary by year; see the U.S. Census Bureau state-to-state migration tables linked below for current figures.
Why people move to Ohio:
Why people leave Ohio:
Tax considerations if moving here:
| State | Tax Rate | Tax on $100K Income | Difference from Ohio |
|---|---|---|---|
| Ohio | 0-2.75% | $2,313 | Baseline |
| Pennsylvania | 3.07% flat | $3,070 | +$757 (more tax) |
| Michigan | 4.25% flat | $3,999 | +$1,686 (more tax) |
| Indiana | 2.95% flat | $2,921 | +$608 (more tax) |
Key insight: Ohio's state income tax at $100K is lower than Pennsylvania's, Indiana's, Michigan's and Illinois's. Save $757/year vs Pennsylvania, $608/year vs Indiana, $1,686/year vs Michigan, and $2,492/year vs Illinois. Only the no-income-tax states (FL, TX), North Dakota and Arizona are lower at $100K in our calculator estimates.
But consider Columbus/Cleveland residents - local taxes:
Property tax comparison:
Combined income + property tax burden:
Bottom line: Ohio offers excellent value in the Midwest - a low income tax while maintaining moderate property taxes. Combined burden is far lower than IL or MI. Only Indiana beats Ohio for overall tax burden among Midwest states.
Ohio has a 2-bracket progressive system: 0% on the first $26,050 of income, then 2.75% on income above $26,050 (after a personal exemption of $1,900-$2,400, depending on income). Ohio has simplified its brackets in steps (2025 had 0%, 2.75% and 3.125%). At $50K income, effective rate is 1.9%. At $100K, effective rate is 2.31%. Most Ohio cities (Columbus 2.5%, Cleveland 2.5%) add local income tax on top of state tax.
Ohio has reduced and consolidated its brackets in several steps. For 2025 the schedule was 0% up to $26,050, 2.75% to $100,000 and 3.125% above; House Bill 96 (2025) moves 2026 to a single 2.75% rate above $26,050. For 2026 the Legislative Service Commission's analysis of the enacted House Bill 96 gives $332 plus 2.75% of income above $26,050; the exact savings depend on income, and the official 2026 tax form had not been published when we last checked.
Partially. Ohio does not tax Social Security, and military (uniformed services) retirement pay is fully deductible. Other pensions (including most public pensions), 401(k), and IRA withdrawals are generally taxable, but only at 2.75% above the $26,050 threshold (after the personal exemption). Better than most states but not as good as IL/PA (no tax on retirement income) or FL/TX (no income tax at all).
Yes, if you work in Columbus city limits. Columbus imposes 2.5% income tax on anyone who works in the city, even non-residents. If your home suburb also has a city tax, you pay both but get a credit to reduce double taxation. Example: Work in Columbus (2.5%), live in a suburb with a 2% tax. Your home city generally gives a credit for tax paid to Columbus (credit rules are set by each city), so the combined bill is typically close to the higher 2.5% rate rather than 4.5%.
Move if: you want lower income tax (save $2,492/year vs IL, $757/year vs PA at $100K), affordable housing, decent job market (healthcare, manufacturing, logistics), family-friendly suburbs. Stay in IL/PA if: your job requires those locations, you prefer bigger cities (Chicago/Philly vs Columbus/Cleveland), or if you're retired with private pension (IL/PA don't tax retirement income, OH does at 2.75%). For high earners, OH savings are substantial.
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How we calculate: Ohio's 2-bracket system is simple to calculate: first $26,050 is tax-free, then income above $26,050 is taxed at 2.75% plus a $332 base amount (after also subtracting a personal exemption of $2,400, $2,150 or $1,900 depending on income). Our calculator subtracts the exemption from your income, applies the $332 base plus 2.75% of the excess over $26,050, and adds federal tax using standard 2026 IRS brackets. For Columbus/Cleveland residents, we can add local tax (2.5%) on request.
Data sources:
Verification: Ohio's 2026 structure (0% up to $26,050, then 2.75%) follows House Bill 96; the state figures here follow the 2026 computation of $332 plus 2.75% of the excess over $26,050 and are estimates for a single filer with wage income. Local tax rates are as published by each city.
Limitations: Assumes single filer, W-2 wage income only, non-Columbus resident (unless stated otherwise). Does not include: federal deductions/credits, local municipal income taxes (1-2.5% in 200+ cities), retirement income deductions (Social Security not taxed, military retirement pay fully deductible), Ohio credits (joint filing credit, low-income credits), school district taxes (vary by district, typically paid via property tax).
For complex situations: Consult a licensed OH CPA or tax professional, especially for: local city tax obligations and commuter credits, retirement income deductions (complex rules for public vs. private pensions), multi-state income allocation, business income and pass-through deductions.
Last Updated: October 2026
Verified By: Daniel · CountryTaxCalc
Contact: For corrections or questions, visit our contact page.
Last Updated: October 2026