Ohio taxes income above $26,050 at a flat 2.75% — one of the lowest effective income tax rates in the Midwest. See exactly what you take home after federal tax, state tax, Social Security, and Medicare.
Ohio's budget bill HB 96 simplified the state's income tax to a single 2.75% rate on income above $26,050, effective January 1, 2026 — eliminating the previous 3.125% top bracket that applied over $100,000. Ohio uses a small personal exemption ($1,900–$2,400 depending on income) rather than a standard deduction. Many Ohio cities — including Columbus, Cleveland, and Cincinnati — levy their own income taxes of 1.8%–2.5% on wages earned there, which are not modeled in this calculator.
Ohio's state income tax was dramatically simplified by HB 96, effective January 1, 2026: there is now a 0% rate on the first $26,050 of income, and a flat 2.75% on everything above that. This eliminated the previous multi-bracket system and removed the higher 3.125% rate that previously applied above $100,000. For a worker earning $75,000, that's approximately $1,347 in Ohio state income tax — an effective state rate of just 1.8%. Ohio's state rate alone is now one of the lowest in the Midwest.
The catch: Ohio has over 600 municipalities with their own income taxes. Columbus, Cleveland, Cincinnati, Dayton, and Akron all charge 2.5% local income taxes on wages earned within city limits. Unlike Indiana (where county taxes are based on where you live) or Pennsylvania (where local EIT is based on where you live), Ohio municipal taxes typically apply to wages earned in that city — meaning a suburban Columbus resident who works downtown pays Columbus's 2.5% rate even if they don't live in the city. Most Ohio cities allow a credit for local taxes paid to other municipalities, but the details vary by city and the credit is often partial.
For remote workers in Ohio, municipal tax rules changed significantly after COVID. Workers who previously commuted to a city and paid that city's tax, but are now working from home in a suburb or rural area, may owe the municipal tax of their home municipality instead — which could be lower, zero, or different from their former employer city. Ohio municipalities have been active in clarifying these rules, but remote workers should verify their current municipal tax situation with their employer's payroll department.
Ohio does not tax Social Security income. It also exempts military pay and has a retirement income credit for lower-income seniors. The state's 2.75% flat rate — combined with the $26,050 zero-rate threshold — makes Ohio's state-level income tax burden very low. It's the municipal tax layer that determines whether an Ohio worker's overall tax burden is modest or significant, and that depends almost entirely on where they work.
Estimates only. OH rate: 0% on first $26,050, then 2.75% above. Personal exemption $1,900–$2,400 based on income. Ohio city income taxes (Columbus 2.5%, Cleveland 2.5%, Cincinnati 1.8%) not included. Consult a tax professional for advice.
| Gross Pay (this check) | $0.00 |
| Federal Income Tax | −$0.00 |
| Ohio State Tax (2.75% above $26,050) | −$0.00 |
| Social Security (6.2%) | −$0.00 |
| Medicare (1.45%) | −$0.00 |
| Net Take-Home Pay | $0.00 |
Ohio taxes income above $26,050 at a flat 2.75% rate for 2026. The first $26,050 of Ohio taxable income is taxed at 0%. This structure was enacted under Ohio's budget bill HB 96, which eliminated the previous 3.125% bracket that had applied to income over $100,000. The result is one rate for virtually all working Ohioans — effectively the lowest state income tax structure in the Midwest for most earners. Source: Tax Foundation State Income Tax Rates 2026.
At minimum, four taxes come out of an Ohio paycheck: federal income tax (progressive brackets), Ohio state income tax (2.75% above $26,050), Social Security (6.2% up to $184,500), and Medicare (1.45% on all wages). If you live or work in a city with a local income tax — such as Columbus, Cleveland, Cincinnati, Toledo, or Akron — your employer also withholds city income tax of 1.8%–2.5%. Ohio has over 600 municipalities with local income taxes, making Ohio paycheck withholding more complex than most other states.
Ohio uses a personal exemption rather than a standard deduction. For 2026, each exemption is worth $2,400 for AGI of $40,000 or less; $2,150 for AGI $40,001–$80,000; and $1,900 for AGI $80,001–$500,000. Taxpayers with AGI over $500,000 receive no exemption. Married filers double the amounts. Because this exemption is much smaller than the federal standard deduction ($16,100 single), Ohio taxes more of your income than the federal government does at lower income levels.
Yes — and it's significant. Columbus and Cleveland both levy a 2.5% city income tax on wages earned within the city, regardless of where you live. Cincinnati taxes at 1.8%, Toledo at 2.25%, and Akron at 2.5%. Ohio has more than 600 municipalities with local income taxes administered through RITA (Regional Income Tax Agency) or CCA (Central Collection Agency). If you commute to a city for work, you may owe that city's tax even if you live elsewhere. Many employers withhold city tax automatically — check your pay stub to confirm.
Indiana has a flat 3.05% income tax but applies it to a broader income base starting from dollar one (with a small exemption). Ohio's 0% floor on the first $26,050 means many low- and moderate-income workers pay less total state tax in Ohio than in Indiana. Michigan has a 4.25% flat rate with a $5,900 personal exemption — significantly higher than Ohio. At a $75,000 salary, an Ohio worker pays roughly $800–$900 less in state income tax than a Michigan worker, though Ohio city taxes can offset much of that advantage.
Ohio's minimum wage adjusts annually on January 1 based on the Consumer Price Index. It was $10.45 per hour in 2024 and $10.70 per hour in 2025. Tipped employees have a lower minimum wage ($5.35/hr in 2025) as long as tips bring total compensation to the standard minimum. Ohio's minimum wage applies to most employees; businesses with annual gross receipts under $385,000 may pay the federal minimum of $7.25/hr instead.
Yes. The One Big Beautiful Bill (2026) exempts overtime premiums and up to $25,000 in tips from federal income tax only. Ohio still taxes overtime and tip income at the standard 2.75% state rate (above the $26,050 floor). Given Ohio's relatively low rate, the state tax impact on overtime and tips is modest compared to higher-tax states. Use our Overtime Tax Calculator to see the combined federal savings and Ohio state tax on overtime.
Pre-tax 401(k) contributions reduce both your federal and Ohio taxable income. Ohio conforms to federal adjusted gross income (AGI), so pre-tax deductions that lower your federal AGI also lower your Ohio taxable income. On a $500/month 401(k) contribution, you save about $13.75/month in Ohio state tax (2.75% × $500), on top of the larger federal savings. Over a year that's about $165 in Ohio state tax savings. Contributing more also affects your Ohio personal exemption tier — lowering AGI below $80,000 increases your exemption from $1,900 to $2,150.