The Ohio income tax rate for 2026 is a flat 2.75% on nonbusiness income above $26,050, added to a $332 base tax, and income at or below $26,050 owes nothing. Tax year 2025 charged 2.75% up to $100,000 and 3.125% above it. Business income stays at 3%. School district and city taxes are separate.
What are the Ohio income tax brackets for 2025 and 2026?
Ohio uses one schedule for every filing status: a single rate above $26,050 for 2026 and two rates for 2025. The 2026 line is the text of R.C. 5747.02(A)(3)(c). The 2025 and 2024 lines match that statute, the Department of Taxation’s Annual Tax Rates page and page 18 of the 2025 IT 1040 booklet.
| Ohio taxable nonbusiness income | 2026 tax | 2025 tax | 2024 tax |
|---|---|---|---|
| $0 to $26,050 | $0 | $0 | $0 |
| Over $26,050 to $100,000 | $332 plus 2.75% of the excess over $26,050 | $342 plus 2.75% of the excess over $26,050 | $360.69 plus 2.75% of the excess over $26,050 |
| Over $100,000 | Same formula as the line above | $2,394.32 plus 3.125% of the excess over $100,000 | $2,394.32 plus 3.5% of the excess over $100,000 |
As of this review the Department’s rate page stops at 2025 and Q3 found no 2026 booklet, so the statute is the source for 2026. A joint return gets the same $26,050 and $100,000 lines as a single return, because division (A)(3) has no filing-status column.
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“Taxable nonbusiness income” means Ohio adjusted gross income minus business income and personal exemptions. Page 17 of the booklet sets the 2025 exemption at $2,400 per person when modified adjusted gross income (MAGI) is $40,000 or less, $2,150 from $40,001 to $80,000, and $1,900 above that. Indexing is suspended for 2026, so this page carries those amounts forward. Taxable business income pays 3% after the first $250,000 ($125,000 if married filing separately) is deducted.
What changed for 2025 and 2026 under House Bill 96?
House Bill 96, Ohio’s fiscal 2026 to 2027 budget act, cut the top rate from 3.5% to 3.125% for 2025 and to 2.75% for 2026. It also lowered the base tax from $360.69 to $342 to $332. Exemptions and the joint filing credit now end for households at $500,000 of MAGI, per the Legislative Service Commission’s Final Analysis, pages 456 and 457.
| Tax year | Rates above the zero bracket | Base tax at $26,050 | Tax on $60,000 taxable | Tax on $150,000 taxable |
|---|---|---|---|---|
| 2022 | 2.765%, 3.226%, 3.688%, 3.99% | $360.69 | $1,363 | $4,639 |
| 2023 | 2.75%, 3.688%, 3.75% | $360.69 | $1,294 | $4,260 |
| 2024 | 2.75%, 3.5% | $360.69 | $1,294 | $4,144 |
| 2025 | 2.75%, 3.125% | $342.00 | $1,276 | $3,957 |
| 2026 | 2.75% | $332.00 | $1,266 | $3,741 |
Q3 calculation from the Department of Taxation’s published schedules and R.C. 5747.02; tax before credits, rounded to the dollar.
Four other House Bill 96 changes reach retirees:
- Exemption and joint credit cap. R.C. 5747.025(A) allows exemptions only when MAGI is less than $750,000 for 2025 and less than $500,000 for 2026 and later; the Final Analysis applies the same caps to the joint filing credit.
- Indexing pause. Section 757.120(A) suspends bracket and exemption indexing for 2025 and 2026, which is why $26,050 did not move.
- Plan withholding. Beginning in 2027, a retiree may ask a private retirement plan to withhold Ohio tax, and the plan must start no later than the following year. Retirement plans may also withhold school district tax.
- The 2025 jump at $100,000. The 2025 schedule produces $2,375.63 at $100,000 and $2,394.35 at $100,001, a step of about $19. The 2026 formula has no such step.
Why does crossing $26,050 cost $332 instead of 2.75% of one dollar?
Ohio’s zero bracket works as a cliff, not a deduction. At $26,050 of taxable income the 2026 tax is $0, and at $26,051 it is $332.03. House Bill 96 shrank that step from $360.72 in 2024 and $342.03 in 2025 without removing it, and the average rate stays below 2.75% at every income level. Another state’s flat-rate design is covered in the Pennsylvania flat income tax guide.
The $332 equals a 1.27448% charge on the first $26,050, the same percentage R.C. 5747.02(A)(2) writes out for estates. Under the 2026 formula the average rate is 1.47% at $30,000 of taxable income, 2.11% at $60,000, 2.37% at $100,000 and 2.60% at $250,000.
A single filer under 65 with no retirement income pays $312 at $26,051 after the $20 exemption credit. A joint couple both 65 or older has $290 of credits at that level, and the 15% joint filing credit comes off what remains, leaving about $36 (Q3 calculation).
Does your Ohio school district tax retirement income?
Only if the district uses the traditional base. The Department’s school district list dated December 30, 2025 shows 214 taxing districts for 2026: 146 tax MAGI less exemptions, which includes pension and IRA income, and 68 tax earned income only, which excludes it. Rates run from 0.25% to 2.00%, and neither base includes Social Security.
The base is set in the ballot resolution under R.C. 5748.01(E): division (E)(1) is the traditional base and division (E)(2) covers wages and self-employment earnings. Q3’s count of the same list finds 81 of the 214 districts at 1.00%, seven at 2.00%, and an unweighted mean of 1.11%.
Examples from the list: Wyoming CSD (3122) at 1.25%, Bexley CSD (2501) at 0.75% and Yellow Springs EVSD (2907) at 2.00% are traditional; Westerville CSD (2514) at 0.75%, Findlay CSD (3204) at 1.00% and Milton-Union EVSD (5505) at 2.00% are earned-income only. All six districts that began levying for 2026, including Westerville and Findlay, use the earned-income base.
On the 2025 SD 100, a traditional-base resident reports MAGI less exemptions on line 22 and takes a $50 senior credit per district on line 26. Pages 58 and 59 of the booklet say that credit is available even to someone ineligible for the IT 1040 senior credit, so the $100,000 limit below does not remove it. The Department’s Finder (tax.ohio.gov/finder) looks up a district by address.
Do Ohio cities tax pensions, IRA withdrawals and Social Security?
Generally no. R.C. 718.01(C)(3) lists Social Security, pensions, retirement benefit payments and annuity payments as exempt income for municipal tax, and division (C)(2) exempts intangible income such as interest and capital gains, apart from cities that voted on November 8, 1988 to keep taxing a type of it. Wages and business profits stay taxable.
Columbus, at 2.5%, shows where the line falls. Appendix A of its IR-25 instructions lists pension income “includes lump sum distributions” and Social Security as non-taxable, but lists “pre-retirement distributions from retirement plans” as taxable. Neither the statute nor that appendix names a Roth conversion, so a retiree in a taxing city can ask its tax office one direct question: is a conversion from a rollover IRA by someone already retired exempt under R.C. 718.01(C)(3)?
Which Ohio retirement credits apply, and what shuts them off at $100,000?
Ohio allows a retirement income credit of up to $200 per return and a $50 senior citizen credit at age 65 on the IT 1040. R.C. 5747.055(B) and (F) limit both to returns with MAGI less exemptions under $100,000, so $99,999 keeps $250 of credits and $100,000 keeps none. Social Security counts toward neither.
| Retirement income in Ohio adjusted gross income | Credit per return |
|---|---|
| $500 or less | $0 |
| $501 to $1,500 | $25 |
| $1,501 to $3,000 | $50 |
| $3,001 to $5,000 | $80 |
| $5,001 to $8,000 | $130 |
| $8,001 or more | $200 |
The joint filing credit does not stop at $100,000. It equals 20%, 15%, 10% or 5% of Schedule of Credits line 11 at MAGI less exemptions of up to $25,000, $50,000, $75,000 and above, capped at $650, and each spouse needs $500 of qualifying income. The Department’s retirement income FAQ says retirement income not deducted on the return counts as qualifying income, while page 29 of the booklet excludes interest, dividends, capital gains, rents and royalties.
That FAQ says draws taken before retirement do not earn the retirement income credit, because the statute requires income “on account of retirement.” The lump sum credits on Schedule of Credits lines 3 and 5 are permanent trades: taking one gives up the matching $200 or $50 credit on all future returns. A full IRA conversion can produce a Form 1099-R with box 2b checked, so the question for a preparer is whether a conversion qualifies as a lump sum at all before anyone elects it.
What does an Ohio retiree couple owe at $40,000 to $400,000 in 2026?
A married couple, both 65, with $100,000 of Ohio MAGI after Social Security comes out owes about $1,911 to Ohio under the 2026 schedule, $9.50 less than under 2025. Living in Wyoming CSD adds $1,152 of school district tax; living in Westerville CSD, an earned-income district, adds $0 because the couple has no wages.
| Ohio MAGI | Taxable after 2 exemptions | Ohio tax, 2025 schedule | Ohio tax, 2026 schedule | Cut, 2025 to 2026 | Wyoming CSD at 1.25% | Westerville CSD at 0.75% | Ohio plus Wyoming, share of MAGI |
|---|---|---|---|---|---|---|---|
| $40,000 | $35,200 | $292 | $284 | $8.50 | $390 | $0 | 1.68% |
| $75,000 | $70,700 | $1,188 | $1,179 | $9.00 | $834 | $0 | 2.68% |
| $100,000 | $96,200 | $1,920 | $1,911 | $9.50 | $1,152 | $0 | 3.06% |
| $200,000 | $196,200 | $5,131 | $4,761 | $370 | $2,403 | $0 | 3.58% |
| $400,000 | $396,200 | $11,068 | $9,986 | $1,082 | $4,903 | $0 | 3.72% |
Q3 calculation using the 2025 and 2026 Ohio schedules and 2025 booklet credit rules; hypothetical household: joint filers, both 65 or older, no wages, no dependents, each spouse with $500 or more of pension or IRA income. Ohio tax is after credits. School district tax is after the $50 senior credit. City tax is excluded.
Below $100,000 the rate cut is worth $10 before credits, so the school district line is the larger difference: $1,152 against $9.50 at $100,000 of MAGI. Above $100,000 the 0.375-point top-rate cut starts to show, reaching $1,082 at $400,000. Social Security appears nowhere in this table because Ohio deducts it.
Worked example at $75,000 of MAGI. Two $2,150 exemptions leave $70,700. The 2026 tax is $332 plus 2.75% of $44,650, or $1,559.88. The $200 retirement credit and $50 senior credit bring line 11 to $1,309.88. The 10% joint filing credit removes $130.99, leaving $1,178.89 for Ohio. In Wyoming CSD, $70,700 at 1.25% is $883.75, less the $50 senior credit, for $833.75. The total is $2,012.64.
Other states are compared in Q3’s list of states that don’t tax retirement income in 2026 and its guide to state tax on 401(k) withdrawals.
What does Ohio charge on a Roth conversion in 2026?
Ohio taxes a conversion because it lands in federal adjusted gross income under IRC 408A(d)(3), and the Department’s FAQ names “converting to a Roth IRA” as taxable under R.C. 5747.01(A). The marginal rate is 2.75%, but crossing Ohio’s thresholds moved the added tax between 2.11% and 4.23% of a $50,000 conversion in the table below.
| MAGI before | MAGI after $50,000 conversion | Added Ohio tax | As % of conversion | Added Wyoming CSD tax | Combined % | What moved |
|---|---|---|---|---|---|---|
| $20,000 | $70,000 | $1,055 | 2.11% | $631 | 3.37% | Part of the conversion fills the $26,050 zero bracket; credits still apply |
| $60,000 | $110,000 | $1,602 | 3.20% | $631 | 4.47% | $250 of credits end; joint credit falls from 10% to 5%; exemptions fall $250 each |
| $85,000 | $135,000 | $1,544 | 3.09% | $625 | 4.34% | $250 of credits end |
| $200,000 | $250,000 | $1,306 | 2.61% | $625 | 3.86% | Nothing crossed; the 5% joint credit trims 2.75% to 2.61% |
| $480,000 | $530,000 | $2,115 | 4.23% | $672 | 5.58% | $3,800 of exemptions and the joint credit end at $500,000 |
Q3 calculation using 2026 Ohio rules; hypothetical household as in the previous table. An earned-income district adds $0, so its combined rate equals the Ohio percentage. Illustrations only; not a projection of any household’s tax.
For the same couple, one dollar past each line adds this much 2026 Ohio tax (Q3 calculation): $36 at $26,050 taxable, $12 at $40,000 MAGI, $13 at $80,000 MAGI, $37 at $50,000 of MAGI less exemptions, $71 at $75,000, $238 at $100,000, and $755 at $500,000 of MAGI. A couple at $60,000 of MAGI stays under the $100,000 line with a conversion up to $43,799 and crosses it at $43,800.
Inside the 24% federal bracket, which ends at $403,550 of joint taxable income for 2026 under Rev. Proc. 2025-32, the simple sum is 26.75% in an earned-income district, 28.00% in Wyoming CSD and 28.75% in a 2.00% traditional district, before any federal deduction for state tax. Federal tax on a conversion has its own walk-through. The $6,000 per-person federal senior deduction also shrinks by 6% of MAGI above $150,000 on a joint return, covered in the senior deduction phaseout guide.
Social Security and later Roth withdrawals sit outside the Ohio base. A conversion can pull more Social Security into federal income, but Ohio deducts that same Form 1040 line 6b amount on Schedule of Adjustments line 16, so the extra federal inclusion adds $0 of Ohio tax. And a qualified Roth distribution stays out of federal adjusted gross income under IRC 408A(d)(1), so it stays out of Ohio AGI and the traditional school base, while a required minimum distribution at 73 or 75 from a traditional IRA stays inside both. Q3 compares state tax on Roth conversions separately.
When the Ohio bill is due. Page 7 of the booklet calls for quarterly estimated payments when Ohio liability less withholding exceeds $500, with the last 2026 date on January 15, 2027. The Department’s senior guide says retirees arrange Ohio and school district withholding with their benefits administrator. Form IT/SD 2210 computes any interest penalty, and the booklet lists 7% as the 2026 interest rate on late-paid tax.
Leaving Ohio first. 4 U.S.C. 114 stops a state from taxing a nonresident’s retirement income, and R.C. 5747.24 decides who is still domiciled in Ohio. Division (B)(4) bars the nonresident presumption in the year of a move, and the booklet’s part-year instructions tax IRA distributions paid while an Ohio resident, so the conversion date matters that year. Q3 covers the sequence in moving to a no-tax state before converting. A move to a state with an income tax brings that state’s rules instead, as in Michigan’s retiree and Roth conversion math.
Frequently asked questions
Is Ohio a flat tax state in 2026?
Yes for nonbusiness income above the zero bracket. R.C. 5747.02(A)(3)(c) sets one 2026 formula, $332 plus 2.75% of the amount over $26,050, with no tax at or below $26,050. Taxable business income is taxed separately at 3% after the deduction for the first $250,000, so an owner can see two rates on one return.
How much Ohio income tax is due on $100,000 of income in 2026?
A single filer with one exemption and $100,000 of Ohio MAGI has $98,100 of taxable income after the $1,900 exemption. The 2026 schedule produces $2,313.38 before credits, which is $10 less than the $2,323.38 the 2025 schedule produces. School district tax, city tax and any credits are separate from that figure.
Does Ohio tax Social Security and pension income?
Ohio does not tax Social Security: the amount on federal Form 1040 line 6b is deducted on Ohio Schedule of Adjustments line 16. Pension, 401(k) and traditional IRA income in federal adjusted gross income is taxed by Ohio, apart from deductible items such as military retirement pay and certain railroad retirement benefits.
Do Ohio seniors have to file a state tax return if they owe nothing?
Not always. The Department of Taxation says no IT 1040 is required when the senior citizen, lump sum distribution and joint filing credits equal or exceed the line 8c liability and there is no school district liability. A resident of a traditional-base district with more than $4,000 of base income at 1.25% owes school tax, so the return is still due.
Will the Ohio income tax rate change after 2026?
No further rate cut is written into R.C. 5747.02, which applies the 2026 formula to taxable years beginning in 2026 and thereafter. Indexing is suspended only for 2025 and 2026 under Section 757.120(A) of House Bill 96, so division (A)(5) can move the $26,050 threshold in a later year while the 2.75% rate stays fixed.
Do snowbirds pay Ohio income tax on retirement income?
A retiree keeping an Ohio home is presumed a resident unless the R.C. 5747.24 test is met: no more than 212 contact periods in Ohio, a non-Ohio abode, no Ohio license or ID, no homestead or owner-occupied reduction, and no in-state tuition. The statement is due October 15 after the tax year, on form IT 10 or IT 1040.
This article is for educational purposes only and is not individualized investment, tax, or legal advice. Consult a qualified professional about your specific situation.
