Ohio State Tax Guide
State tax rates and rules for income, sales, property, fuel, cigarette, and other taxes that impact Ohio residents.
- (opens in new tab)
- (opens in new tab)
- (opens in new tab)
- Newsletter sign up Newsletter
Bottom Line
Middle-Class Families: Not Tax-Friendly (Go to the Kiplinger Tax Map for Middle-Class Families)
Retirees: Not Tax-Friendly (Go to the Kiplinger Tax Map for Retirees)
The state income tax burden in Ohio is reasonably light, with a top tax bracket of 3.99%. But watch out for municipal and school district income taxes, as these can run as high as an additional 3%.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Property taxes in the Buckeye State lean high, too. Ohio's median property tax rate is the 11th-highest in the nation.
Sales taxes in the state are relatively modest. That helps keep Ohio out of the "least tax-friendly" category. And there are no estate or inheritance taxes to worry about.
Ohio Income Taxes
Ohio Income Tax Range
Low: 2.765% (on taxable income from $26,051 to $46,100)
High: High: 3.99% (on taxable income over $115,300)
Cities and school districts in Ohio can also impose local income taxes.
Ohio Taxation of Social Security Benefits
Social Security benefits are not taxed by the state.
Ohio Tax Breaks for Other Retirement Income
Military pensions and Railroad Retirement benefits are exempt.
Ohio also has four tax credits for retirees with a state tax base of $100,000 or less. The retirement income credit is worth $25 to $200, depending on the amount of qualifying income from a pension or retirement plan (including 401(k) plans and IRAs). In addition, taxpayers age 65 and older can claim the senior citizen credit, which is worth $50 per tax return. The lump-sum retirement credit is for taxpayers who receive a lump-sum distribution on account of retirement from a pension or retirement plan. The lump-sum distribution credit is for taxpayers age 65 or older who receive a lump-sum distribution from a pension or retirement plan. Claiming one credit or exemption may impact the ability to claim others.
Ohio Sales Tax
5.75% state levy. Localities can add as much as 2.25%, and the average combined rate is 7.24%, according to the Tax Foundation.
- Groceries: Exempt
- Clothing: Taxable
- Motor Vehicles: Taxable
- Prescription Drugs: Exempt
Ohio Real Property Taxes
In Ohio, the median property tax rate is $1,406 per $100,000 of assessed home value.
Ohio Property Tax Breaks for Retirees
A homestead exemption is available for qualified homeowners who are at least 65 years old, permanently and totally disabled, or at least 59 years old and the surviving spouse of a deceased taxpayer who had previously received the exemption. Qualified homeowners are permitted to exempt up to $25,000 of their home's market value from all local property taxes. For 2022, eligibility for new exemptions is limited to qualifying taxpayers (by age) with Ohio adjusted gross income of $34,600 or less. Taxpayers who were already granted the exemption will continue to receive it.
Ohio Motor Fuel Taxes
Gasoline: 38.51¢ per gallon.
Diesel: 47.01¢ per gallon.
Ohio Sin Taxes
Cigarettes: $1.60 per pack (additional $0.35 per pack in Cuyahoga County)
Cigars: 17% of the wholesale price with a cap of $0.54 per cigar
Little cigars: 37% of the wholesale price
Chewing tobacco: 17% of the wholesale price
Snuff: 17% of the wholesale price
Vapor products: $0.10 per ml
Beer: $0.18 per gallon
Wine: $0.32 per gallon ($1.50 if sparkling)
Liquor: $9.83 per gallon (the liquor tax is an estimate by the Distilled Spirits Council of the United States and published by the Tax Foundation)
Cuyahoga County has additional excise taxes on all alcohol.
Ohio Estate and Inheritance Taxes
No estate or inheritance tax.
Rocky Mengle was a Senior Tax Editor for Kiplinger from October 2018 to January 2023 with more than 20 years of experience covering federal and state tax developments. Before coming to Kiplinger, Rocky worked for Wolters Kluwer Tax & Accounting, and Kleinrock Publishing, where he provided breaking news and guidance for CPAs, tax attorneys, and other tax professionals. He has also been quoted as an expert by USA Today, Forbes, U.S. News & World Report, Reuters, Accounting Today, and other media outlets. Rocky holds a law degree from the University of Connecticut and a B.A. in History from Salisbury University.
-
-
Deeper Regional Banking Crisis Unlikely after Triple Failure: Kiplinger Economic Forecasts
Economic Forecasts Deeper Regional Banking Crisis Unlikely after Triple Failure: Kiplinger Economic Forecasts
By Rodrigo Sermeño • Published
-
Spending Cuts Could Trigger Deeper Slowdown: Kiplinger Economic Forecasts
Economic Forecasts Spending Cuts Could Trigger Deeper Slowdown: Kiplinger Economic Forecasts
By David Payne • Published
-
Half of Mothers Have Little or No Retirement Savings
Mother’s Day is here, but many moms face future financial insecurity because they have little or no retirement savings.
By Kelley R. Taylor • Last updated
-
Having a Baby Could Soon Cost Less in These States
Having a baby is expensive, but these states are trying to make it less costly by eliminating the tax on diapers.
By Katelyn Washington • Published
-
The Most Expensive States to Die In (Due to Death Taxes)
You probably know the cost of living in your state, but what about the cost of dying — death taxes?
By Katelyn Washington • Published
-
Is High-Yield Savings Account Interest Taxable?
Think a high-yield savings account is a good idea? Don’t forget that savings account interest is taxable.
By Katelyn Washington • Published
-
2023 Georgia Tax Rebates Up to $500 Are Now Being Sent
Georgia has started sending special 2023 surplus tax refunds to eligible residents.
By Kelley R. Taylor • Published
-
Is Your Scholarship Tax-Free or Taxable?
Scholarships are generally tax-free if certain IRS and other requirements are met.
By Kelley R. Taylor • Published
-
Oklahoma Storm Victims Have an Extended IRS Tax Deadline
Oklahoma taxpayers impacted by severe April storms have an extended tax filing and tax payment deadline.
By Katelyn Washington • Published
-
10 States With the Lowest Sales Tax
Don't rush to a state with low sales tax if your goal is to save money.
By Katelyn Washington • Published