Disclaimer: Calculations are estimates based on tax rates as of Dec. 2021 and data from the Tax Foundation. These rates are subject to change. Check the IRS website for the latest information about income taxes and your state tax website for state-specific information. Our calculator doesn’t consider both 401k and IRA deductions due to the tax law limitations. Please note, the amount of your IRA deductions may vary. You should speak with a tax professional to determine your tax situation.
What You Need To Know About Ohio State Taxes
The state of Ohio requires you to pay taxes if you’re a resident or nonresident that receives income from an Ohio source. The 2021 state income tax rates range from 2.765% to 3.99%, and the sales tax rate is 5.75%.
Ohio state offers tax deductions and credits to reduce your tax liability, including a personal exemption, credits for 529 contributions and more.
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Ohio Income Tax Brackets and Rates
Some cities in Ohio enact their own income taxes as well, which are in addition to any state tax. Refer to this municipal income taxes resource for more information.
Additionally, Ohio school districts can levy income taxes for financial support. This tax is in addition to any state and city income or property taxes. As of January 2022, 210 school districts impose an income tax. Use this search tool to determine your school district and tax rate.
Income Tax Deductions for Ohio
Personal and Dependent Exemptions
Ohio allows an exemption for yourself, your spouse (if you’re filing jointly) and the dependents you claim on your federal tax return. You claim an exemption for each qualifying person in your household. The exemption is as follows:
Federal Itemized Deductions
You can’t deduct federal itemized deductions on your Ohio state tax return—Ohio uses your federally adjusted gross income, which already includes your federal deductions, to calculate state income tax.
529 Plan Account Deduction
Up to $4,000 in contributions to an Ohio 529 savings plan can be deducted per beneficiary per year. Contributions exceeding $4,000 can be carried forward and deducted on future returns until fully used (they’ll also be subject to the $4,000 per beneficiary annual limit).
STABLE Account Deduction
Up to $4,000 in contributions to an Ohio STABLE account can be deducted per beneficiary per year. Contributions exceeding $4,000 can be carried forward and deducted on future returns (they’ll also be subject to the $4,000 per beneficiary annual limit).
Ohio State Income Tax Credits
The following credits are nonrefundable (which means if they exceed the amount of taxes you owe, they cannot trigger a tax refund).
Retirement Income Credit
If you received income from a pension, profit-sharing or retirement plan (such as an IRA or 401(k)), you’re eligible for up to a $200 credit. Your modified adjusted gross income, less exemptions, must be less than $100,000.
Lump Sum Retirement Credit
If you claim this credit, you can’t claim the retirement income credit on this year’s return or any future return. If you received a total, lump sum distribution on account of retirement, and your modified adjusted gross income, less exemption, is less than $100,000 you can claim this credit. The lump sum retirement credit can only be claimed once per lifetime.
Senior Citizen Credit
If you’re 65 or older at the end of the tax year, and your modified adjusted gross income, less exemptions, is under $100,000, you’re eligible for a $50 credit per return. You can’t ever claim this credit if you have previously taken the below lump sum distribution credit.
Lump Sum Distribution Credit
If you’re 65 and older with a modified adjusted gross income, less exemptions, under $100,000, and you received a total, lump sum distribution from a qualified pension, retirement or profit-sharing plan, you’re eligible to claim this credit. You can only claim this credit once per lifetime. If you claim the lump sum distribution credit, you can’t claim the above senior citizen credit on this return or any future return.
Child Care and Dependent Care Credit
You can claim this credit on your Ohio state tax return if your modified adjusted gross income is less than $40,000 and you claimed this credit on your federal return.
Displaced Worker Training Credit
Displaced workers (those who lost their job due to a shift elimination, or the closing or moving of a job location) can receive $500 or 50% of the amount paid for job training during the 12 months following the loss or leaving of a job. Other qualified expenses include college tuition and fees and books for courses.
Campaign Contribution Credit
If you contributed to a campaign committee of qualifying Ohio (such as the governor, secretary of state, Ohio Senate or House of Representatives, etc.), you can claim this credit. The credit equals the contributed amount during the tax year up to $50 per return, or $100 if you’re filing jointly. Contributions to federal candidates (such as the president or a US senator) don’t qualify for this credit.
If your modified adjusted gross income, less exemptions, is below $30,000 you can claim this credit. The credit equals $20 per exemption claimed on your return. For example, if you qualify for an exemption for you and your spouse, you may qualify for a $40 ($20 x 2) exemption credit.
Joint Filing Credit
You and your spouse must have at least $500 of income each to qualify for this credit. The credit equals a percentage of your tax liability with a maximum credit amount of $650.
Earned Income Tax Credit
If you claim the Earned Income Tax Credit (EITC) on your federal return, you’ll receive 30% of that amount on your Ohio state tax return. So if your federal EITC is $2,000, you’re entitled to $600 on your Ohio return.
Home School Expenses Credit
If your dependent is home schooled and you bought books, subscriptions, school supplies or computer software and applications, you can claim up to $250 of those costs with this credit. Educational expenses do not include computers, and students who attended school remotely due to Covid-19 aren’t eligible for this credit.
Scholarship Donation Credit
Up to $750 in donations to an eligible scholarship-granting organization can be claimed as a credit on your Ohio state tax return.
Nonchartered, Nonpublic School Tuition Credit
If you paid tuition for your dependents to attend a nonchartered, nonpublic school and have a federal adjusted gross income (AGI) under $100,000, you can claim this credit. The credit equals the lesser of $500 if your federal AGI is less than $50,000, or $1,000 if your federal AGI is $50,000 to $99,999.
Ohio Adoption Credit
If you adopted a child (under the age of 18) this year who was not your step child, you are eligible for this credit. The credit is worth $1,500 to $10,000 for adoption-related expenses, such as legal fees, medical care expenses for the birth mother or child, etc. This credit is nonrefundable, which means it can’t trigger a tax refund, but any unused portion of it can be carried forward for up to five consecutive years.
Do I Have to Pay Income Tax in Ohio?
You’re required to file an Ohio tax return if you receive income from an Ohio source, and you fall into one of the following categories:
- Resident: Your abode (primary home) is in Ohio. You’re considered a resident even if you take temporary absences from your home in Ohio, no matter how long the absences are.
- Part-year resident: You lived in Ohio for part of the tax year. Part-year residents are entitled to the nonresident credit for any income earned while they were a resident of another state. They’re also eligible for the resident credit on any non-Ohio income earned while living in Ohio, as long as they paid tax on it in another state.
- Nonresident: You’re a resident of another state for the entire tax year. If you earned Ohio-sourced income, you will have to file an Ohio state tax return, but you’ll be eligible to claim the nonresident credit to all income earned outside of Ohio to avoid being taxed twice. If you live in Indiana, Kentucky, Michigan, Pennsylvania or West Virginia, you don’t need to file an Ohio state tax return if your only Ohio-sourced income is wages.
Related: Ohio Income Tax Calculator
Sales Tax and Sales Tax Rates
Ohio charges a sales tax of 5.75%. Counties may levy additional sales taxes.
Property Taxes and Property Tax Rates
Low-income senior citizens (aged 65 and older) and permanently and totally disabled people are eligible for up to $25,000 of the market value of their homes being exempt from all local property taxes.
Capital Gains Taxes
Generally, Ohio taxes capital gains at the income tax rate.
Inheritance and Estate Tax
Ohio does not have an estate or inheritance tax.
Editor’s note: This post has been updated to include information about municipality and school district income taxes in Ohio.