What is the Ohio state income tax rate in 2026?

Ohio has two income tax brackets in 2026. Income from $26,051 to $100,000 is taxed at 2.75%. Income over $100,000 is taxed at 3.5%. The first $26,050 of income is taxed at 0% (no Ohio income tax). Ohio has significantly reduced its income tax rates over the past decade and continues to reduce them. Ohio also has a low top rate compared to states like California (13.3%), New York (10.9%), and New Jersey (10.75%).

Does Ohio have a standard deduction?

Ohio does not have a traditional standard deduction like the federal return. However, Ohio provides a personal exemption credit: $20 per exemption (taxpayer, spouse, and each dependent). Ohio does offer other credits including the retirement income credit, lump sum retirement credit, and senior citizen credit ($50 for filers age 65+). Ohio's tax base starts from federal adjusted gross income (AGI) with Ohio-specific additions and subtractions.

What is the Ohio business income deduction?

Ohio's Business Income Deduction (BID) is one of the most generous in the country for small business owners. In 2026, Ohio allows a deduction of up to $125,000 (single filers) or $250,000 (married filing jointly) of business income from Ohio income tax. Business income qualifying for the BID includes income from sole proprietorships, S-corps, partnerships, and LLCs passed through to the owner's personal return. Income above the deduction threshold is taxed at a flat 3% rate instead of the regular schedule. This makes Ohio very tax-friendly for small business owners.

Does Ohio have a city income tax?

Yes — many Ohio cities and villages levy their own local income taxes, separate from the state income tax. Local rates vary widely: Columbus: 2.5%; Cleveland: 2.5%; Cincinnati: 1.8%; Toledo: 2.25%; Akron: 2.5%. If you live and work in different municipalities, you may owe tax to both, with partial credit for taxes paid to your work city. This local tax system is unique to Ohio and can significantly increase your overall tax burden. Check your city or village's rate at the Ohio Department of Taxation website.

When is the Ohio state income tax return due?

Ohio state income tax returns are due April 15, 2026, the same as the federal deadline. Ohio grants an automatic 6-month extension to October 15, 2026, but this is an extension to file only — not to pay. Any Ohio income tax owed must be paid by April 15 to avoid penalty and interest. Ohio residents can file online at tax.ohio.gov or through tax software that supports Ohio state returns.

Ohio State Income Tax 2026 — Rates, Brackets, and Filing Guide

Ohio has two income tax brackets in 2026, with the top rate of 3.5% on income over $100,000. The first $26,050 in Ohio income is tax-free. Ohio’s low top rate makes it one of the more tax-friendly states for earners under $100,000. However, many Ohio cities and villages charge their own local income taxes of 1–2.5%, which can add significantly to the total burden.

Quick answer: A single Ohio filer earning $70,000: pays 2.75% on $43,950 (the portion between $26,051 and $70,000) = $1,209 Ohio state income tax. Plus any local city income tax (typically 1–2.5%). Ohio is favorable for small business owners due to the Business Income Deduction that shields up to $125,000 of business income from tax.

2026 Ohio Income Tax Brackets

Taxable Income	Tax Rate	Notes
$0 – $26,050	0%	No Ohio tax on this income
$26,051 – $100,000	2.75%	On the amount above $26,050
Over $100,000	3.5%	On the amount above $100,000

Ohio has dramatically simplified and reduced its income tax system over the past decade. The state previously had multiple brackets with rates as high as 4.997%.

Worked Tax Examples — Ohio 2026

Single filer, $50,000 gross income:

Income under $26,050: $0 tax
Income from $26,051–$50,000: $23,949 × 2.75% = $659
Total Ohio state income tax: $659
Effective rate on $50,000: 1.32%

Single filer, $120,000 gross income:

Income under $26,050: $0 tax
$26,051–$100,000: $73,949 × 2.75% = $2,034
$100,001–$120,000: $20,000 × 3.5% = $700
Total Ohio state income tax: $2,734
Effective rate on $120,000: 2.28%

Married couple, $160,000 combined:

$26,051–$100,000: $73,949 × 2.75% = $2,034
$100,001–$160,000: $60,000 × 3.5% = $2,100
Total Ohio state income tax: $4,134

Ohio Business Income Deduction — Big Benefit for Self-Employed

Ohio’s Business Income Deduction (BID) is exceptionally generous:

Filing Status	BID Amount	Rate on Excess
Single / Head of Household	Up to $125,000 deducted	3% flat on excess
Married Filing Jointly	Up to $250,000 deducted	3% flat on excess

Example — Self-employed single filer, $100,000 net business income:

Without BID: $73,949 × 2.75% = $2,034 Ohio tax
With BID (all $100,000 deducted): $0 Ohio income tax on business income
Tax savings: $2,034

This makes Ohio very attractive for sole proprietors, S-corp owners, and LLC members with Ohio-source business income.

Ohio Local Income Tax — Critical Additional Cost

Unlike most states, Ohio allows local governments (cities, villages, townships) to levy their own income taxes:

City	Local Rate
Columbus	2.5%
Cleveland	2.5%
Cincinnati	1.8%
Toledo	2.25%
Akron	2.5%
Dayton	2.25%

Impact example (Columbus resident earning $70,000):

Ohio state tax: $659
Columbus city tax: $70,000 × 2.5% = $1,750
Total state + local: $2,409

If you live in one city and work in another, both municipalities may have claims, but most provide credit for taxes paid to the work municipality. Ohio tax software handles this automatically.

Ohio vs. Neighboring States

State	Top Rate	Local Tax?	Notes
Ohio	3.5%	Yes (1–2.5%)	Low state rate; local adds up
Indiana	3.23% (flat)	Yes (~1%)	Flat tax; county tax varies
Michigan	4.25% (flat)	Yes (some cities)	Flat tax
Kentucky	4.5% (transitioning)	Yes (some cities)
Pennsylvania	3.07% (flat)	Yes (Philadelphia 3.75%)	Low flat rate
West Virginia	6.5% (top bracket)	No	Higher rate

How to File Ohio State Taxes

Deadline: April 15, 2026 Extension: Automatic 6 months to October 15

Where to file:

tax.ohio.gov — Ohio’s free online filing portal
Tax software — TurboTax, H&R Block, TaxAct all support Ohio
Paper return — IT-1040 (residents); IT-1040NR (non-residents)
Ohio Free File — partnerships with software providers for qualifying taxpayers

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy