🇺🇸 Ohio Income Tax — 2026 UPDATE

Ohio Income Tax Rates & Brackets (Tax Year 2025 — Filed in 2026)

⚠️Informational only — not legal or tax advice.

Tax year covered: 2025 (returns filed in 2026)
Applies to: Income earned January 1 – December 31, 2025
Returns filed: January – April 2026
Last verified: February 12, 2026

Ohio State Income Tax

Table of Contents

Quick Reference

Does Ohio have income tax? Yes
Tax structure: Progressive (transitioning to flat rate in 2026)
Tax rates: 0% to 3.125%
Standard deduction (Single): Personal exemptions used instead
Standard deduction (Married): Personal exemptions used instead
Local income tax: Yes – Most municipalities and 200+ school districts levy income taxes
Official source: https://tax.ohio.gov/

Key Takeaways

  • Residents: Ohio residents pay Ohio income tax on income from all sources
  • Non-residents: Non-residents pay Ohio income tax only on Ohio-source income
  • Tax rates: Progressive system with three brackets: 0%, 2.75%, and 3.125% for Tax Year 2025
  • 2026 simplification: Tax structure will simplify to flat 2.75% rate (above $26,050 exemption) starting Tax Year 2026
  • Local income tax: Yes – Most cities and 200+ school districts impose separate income taxes (0.5% to 3%)
  • Reciprocity: Indiana, Kentucky, Michigan, Pennsylvania, West Virginia
  • Primary forms: IT 1040 (resident), IT 1040 (non-resident/part-year with nonresident credit)

Quick Questions About Ohio Income Tax

What is the Ohio income tax rate for 2025? Ohio has a progressive income tax with rates of 0%, 2.75%, and 3.125% for Tax Year 2025. The first $26,050 of taxable income is exempt from tax. Income from $26,051 to $100,000 is taxed at 2.75%, and income above $100,000 is taxed at 3.125%.

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf

Does Ohio have state income tax? Yes. Ohio has state income tax on individuals. Ohio does not have a corporate income tax, but instead uses the Commercial Activity Tax (CAT) for businesses based on gross receipts.

Source: https://tax.ohio.gov/

What are the income tax brackets in Ohio? For Tax Year 2025, Ohio has 3 tax brackets. Income from $0 to $26,050 is taxed at 0%. Income from $26,051 to $100,000 is taxed at 2.75%. Income above $100,000 is taxed at 3.125%.

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf

Is Social Security taxed in Ohio? No. Ohio does not tax Social Security benefits. Social Security income is fully exempt from Ohio state income tax.

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf

Does Ohio tax retirement income? Ohio provides a retirement income credit for certain pension and retirement income. Uniformed services retirement income (military retirement) is fully deductible. Other retirement income may qualify for the retirement income credit (up to $200 maximum). Social Security, disability, and survivor benefits are fully exempt.

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf

Do I need to file an Ohio income tax return? You must file an Ohio income tax return if you are an Ohio resident or part-year resident, or if you are a nonresident with Ohio-source income. Residents with Ohio adjusted gross income greater than their personal exemptions must file. Certain nonresidents with only wage income from reciprocal states (Indiana, Kentucky, Michigan, Pennsylvania, West Virginia) do not need to file.

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf

Ohio Income Tax Rates and Brackets (2026)

The following tax rates and brackets apply to income earned in 2025, reported on tax returns filed in 2026.

Rate Snapshot
Tax Attribute Amount/Status
Lowest Tax Rate 0%
Highest Tax Rate 3.125%
Tax Structure Progressive (3 brackets)
Number of Brackets 3 brackets
State Income Tax Yes
Local Income Tax Yes (most municipalities and 200+ school districts)
Personal Exemption (Based on MAGI) $0 to $2,400 per person
Business Income Deduction First $250,000 exempt ($125,000 if married filing separately)
Ohio Income Tax Brackets 2026
Important Note: Ohio does not use different tax brackets based on filing status. All filing statuses use the same bracket structure for taxable nonbusiness income.
Taxable Income Tax Rate Tax Calculation
$0 - $26,050 0.000% $0
$26,051 - $100,000 2.750% $342.00 plus 2.750% of amount over $26,050
$100,001+ 3.125% $2,394.32 plus 3.125% of amount over $100,000

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf

Business Income Tax: Business income (after the business income deduction) is taxed at a flat 3% rate.

Source: https://codes.ohio.gov/ohio-revised-code/section-5747.02


Important 2026 Tax Changes

Starting Tax Year 2026 (returns filed in 2027): Ohio will transition to a simplified flat tax structure:

  • $0 to $26,050: 0%
  • $26,051 and above: Flat 2.75%

The current 3.125% top bracket will be eliminated, resulting in tax savings for taxpayers with income above $100,000.

Source: https://codes.ohio.gov/ohio-revised-code/section-5747.02

Statutory Authority

State income tax in Ohio is authorized under the following legal framework:

Constitutional Authority:

  • Ohio Constitution Article XII, Section 3 – Grants the General Assembly authority to levy taxes
  • Ohio Constitution Article XII, Section 9 – Income tax provisions

Statutory Authority:

  • Ohio Revised Code Chapter 5747 (Income Tax)
    • Section 5747.01 – Definitions
    • Section 5747.02 – Imposition of tax; rates
    • Section 5747.05 – Tax credits
    • Section 5747.06 – Employer withholding
    • Section 5747.08 – Filing requirements
  • Link to official Ohio Revised Code: https://codes.ohio.gov/ohio-revised-code/chapter-5747

Administrative Regulations:

Legislative History:

  • Original enactment: 1971
  • Major rate reduction: 2024 (HB 33 reduced top rate from 3.75% to 3.5%)
  • Current rate structure: 2025 (HB 96 reduced top rate to 3.125%, enacted flat tax for 2026)
  • Current structure effective: Tax Year 2025

This page compiles information directly from these statutory and regulatory authorities as implemented by the Ohio Department of Taxation.

Source: https://codes.ohio.gov/ohio-revised-code/chapter-5747 and https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf

Who Must File Ohio Income Tax

Residents

Ohio tax law requires residents to file a state income tax return if any of the following apply:

  • You are required to file a federal income tax return, OR
  • Your Ohio adjusted gross income exceeds your personal exemption amount

Exemption amounts for Tax Year 2025:

  • MAGI $40,000 or less: $2,400 per exemption
  • MAGI $40,001 – $80,000: $2,150 per exemption
  • MAGI $80,001 – $749,999: $1,900 per exemption
  • MAGI $750,000 or greater: $0 per exemption

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf

Recommendation: If your federal adjusted gross income exceeds $28,450, the Ohio Department of Taxation recommends filing an Ohio return even if you do not owe tax, to avoid delinquency billings.

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf

Part-Year Residents

Part-year residents must file if they were an Ohio resident for part of the year and had income from any source during their period of Ohio residency.

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf

Non-Residents

Non-residents must file if they had income from Ohio sources during the tax year, including:

  • Wages earned while physically working in Ohio
  • Business income from Ohio operations
  • Rental income from Ohio property
  • Income from a pass-through entity doing business in Ohio
  • Ohio lottery, casino, or sports gaming winnings

Exception for Reciprocal State Residents: Full-year nonresidents living in Indiana, Kentucky, Michigan, Pennsylvania, or West Virginia do not have to file if their only Ohio-sourced income is wages.

Example: A Kentucky resident who commutes to Cincinnati for work does not need to file an Ohio return if wages are their only Ohio income.

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.05

What Income Is Taxable in Ohio

Fully Taxable Income

  • Wages and salaries
  • Self-employment income
  • Business income (after business income deduction)
  • Investment income (interest, dividends, capital gains)
  • Retirement account distributions (401(k), traditional IRA, etc.)
  • Pension income (subject to retirement income credit)
  • Rental income
  • Royalty income
  • Unemployment compensation
  • Lottery, casino, and sports gaming winnings

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf

Social Security Benefits

Ohio does not tax Social Security benefits. All Social Security income is fully deductible from Ohio adjusted gross income.

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.01

Military Retirement Pay

Ohio fully exempts uniformed services retirement income. This includes:

  • Military retirement pay from U.S. Armed Forces
  • Retirement from reserve components
  • National Guard retirement income
  • Commissioned corps of NOAA and Public Health Service

The deduction applies to the portion of federal civil service retirement that is attributable to military service.

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.01

Pension Income

Private Pensions: Taxable but may qualify for retirement income credit (maximum $200 per return)

Public Pensions: Taxable but may qualify for retirement income credit (maximum $200 per return)

Federal Civil Service Retirement: Taxable (except portion attributable to military service)

Railroad Retirement Benefits: Fully deductible

Disability and Survivor Benefits: Fully deductible

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf

Personal Exemption

Ohio allows personal exemptions instead of a standard deduction. Exemptions are available for:

  • You, if not claimed as a dependent on another person’s return
  • Your spouse, if filing jointly and not claimed as a dependent on another person’s return
  • Your dependents claimed on your federal tax return
Exemption Amounts for Tax Year 2025
Based on Modified Adjusted Gross Income (MAGI).
Modified Adjusted Gross Income Exemption Amount per Person
$40,000 or less $2,400
$40,001 - $80,000 $2,150
$80,001 - $749,999 $1,900
$750,000 or greater $0

Note: For Tax Year 2026 and after, the income cap for exemptions will be reduced to $500,000 MAGI.

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf

What is Modified Adjusted Gross Income (MAGI)?

MAGI is your Ohio adjusted gross income (IT 1040, line 3) plus your business income deduction (Schedule of Adjustments, line 13).

If you did not take a business income deduction, your MAGI equals your Ohio adjusted gross income.

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf


Business Income Deduction

Ohio provides a significant deduction for business income:

Deduction Amount:

  • First $250,000 of business income is fully deductible
  • $125,000 if married filing separately

Business income remaining after this deduction is taxed at a flat 3% rate (instead of the progressive rates applied to nonbusiness income).

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.01

What Qualifies as Business Income?

Business income includes:

  • Schedule C net profit or loss
  • Schedule E income from pass-through entities
  • Schedule F farming income
  • Guaranteed payments from partnerships (if you own 20%+ of the entity)
  • Compensation from S corporations (if you own 20%+ of the corporation)
  • Capital gains from business property
  • Business-related interest and dividends

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.01


Key Ohio Tax Deductions

529 Plan Contributions

Deduct up to $4,000 per beneficiary per year for contributions to Ohio 529 savings plans.

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.70

STABLE (Ohio ABLE) Account Contributions

Deduct up to $4,000 per beneficiary per year for contributions to STABLE accounts for individuals with disabilities.

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.78

Ohio Homebuyer Plus Account Contributions

Deduct up to $5,000 per account per year for contributions to Ohio Homebuyer Plus accounts. If filing jointly and both spouses contribute, the limit is $10,000 per account.

The deduction is available for 5 years after account opening.

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.85

Medical and Health Care Expenses

Deduct unreimbursed medical and health care expenses to the extent not otherwise deducted or excluded from federal AGI:

  • Dental, vision, and health insurance premiums
  • Long-term care insurance premiums
  • Medical care expenses exceeding 7.5% of federal AGI

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.01

Ohio Educator Expense Deduction

Ohio educators (K-12 teachers, instructors, counselors, principals, or aides) can deduct up to $300 per educator for qualifying education expenses.

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf

Pregnancy Resource Center Contributions

Deduct up to $750 per taxpayer ($1,500 if filing jointly) for contributions made to qualifying pregnancy resource centers between September 30, 2025 and December 31, 2025.

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf

Ohio Income Tax Credits

Retirement Income Credit

Eligibility:

  • MAGI less exemptions is less than $100,000
  • You received pension or retirement income included in Ohio AGI
  • Income was received on account of retirement
  • You have not previously claimed the lump sum retirement credit

Credit Amount: Based on eligible retirement income, maximum $200 per return

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.055

Senior Citizen Credit

Eligibility:

  • MAGI less exemptions is less than $100,000
  • Age 65 or older at end of tax year
  • Have not previously claimed lump sum distribution credit

Credit Amount: $50 per return

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.055

Lump Sum Retirement Credit

Eligibility:

  • MAGI less exemptions is less than $100,000
  • Received total lump sum distribution from qualified retirement plan
  • Distribution was on account of retirement

Important: Taking this credit permanently disqualifies you from the retirement income credit.

Credit Calculation: Based on percentage of distribution, see instructions

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.055

Lump Sum Distribution Credit (Age 65+)

Eligibility:

  • MAGI less exemptions is less than $100,000
  • Age 65 or older at end of tax year
  • Received total lump sum distribution from qualified retirement plan

Important: Taking this credit permanently disqualifies you from the $50 senior citizen credit.

Credit Calculation: Based on percentage of distribution, see instructions

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.055

Child and Dependent Care Credit

Eligibility:

  • MAGI is less than $40,000
  • Claimed federal child and dependent care credit

Credit Calculation: Based on federal credit and MAGI

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.054

Joint Filing Credit

Eligibility:

  • Filing jointly
  • Both spouses have at least $500 of qualifying income (wages, self-employment, etc.)
  • MAGI less than $750,000

Credit Amount: 5% to 20% of tax liability (before credits), maximum $650

Percentage based on MAGI less exemptions:

  • $0 – $25,000: 20%
  • $25,001 – $50,000: 15%
  • $50,001 – $75,000: 10%
  • $75,001 – $749,999: 5%

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.05

Earned Income Credit

Ohio’s nonrefundable earned income credit equals 30% of the federal earned income credit.

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.71

Home School Expense Credit

$250 per qualifying student for educational expenses related to home schooling.

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf

Exemption Credit

Eligibility:

  • MAGI less exemptions is less than $30,000

Credit Amount: $20 per exemption claimed

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.022

Filing Deadlines

Regular Deadline

April 15, 2026 for Tax Year 2025 returns

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.08

Extension Deadline

October 15, 2026

Ohio does not have a separate extension request form. Ohio automatically recognizes federal extensions.

To receive an extension:

  • File a federal extension (IRS Form 4868) by April 15, 2026
  • Pay any estimated Ohio tax owed by April 15, 2026
  • Extension applies to filing only, not payment

Extension form: Federal Form 4868 (IRS extension)

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.08

Estimated Tax Payments

If you have income not subject to withholding and expect to owe more than $500 in Ohio tax (after withholding and credits), quarterly estimated payments are due:

  • Q1 (2025): April 15, 2026
  • Q2: June 15, 2026
  • Q3: September 15, 2026
  • Q4 (2026): January 15, 2027

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.09

Filing Options for Ohio Income Tax

Online Filing (E-File)

Electronic filing is available through:

  • Ohio OH|TAX eServices: https://tax.ohio.gov/OHTAX
    • Free for all taxpayers
    • Fastest refund processing (approximately 15 business days)
    • Supports direct deposit
  • IRS-Approved Tax Software: TurboTax, H&R Block, TaxAct, TaxSlayer Pro (that support Ohio returns)
  • Free File Options: Available through OH|TAX eServices for all income levels

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf

Paper Filing

Paper forms are available for download and mail filing:

  • Primary Forms:
    • IT 1040 – Individual Income Tax Return
    • IT 10 – Simplified Individual Income Tax Return (for qualifying taxpayers)
  • Download Location: https://tax.ohio.gov/forms
  • Processing Time: Approximately 8-10 weeks
  • Mailing Addresses:

IT 1040 without payment:

Ohio Department of Taxation
PO Box 2679
Columbus, OH 43270-2679

IT 1040 with payment:

Ohio Department of Taxation
PO Box 2057
Columbus, OH 43270-2057

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf

Tax Preparer Options

Licensed tax professionals familiar with Ohio tax law include:

  • CPA (Certified Public Accountant)
  • Enrolled Agent (EA)
  • Tax Attorney
  • VITA (Volunteer Income Tax Assistance) – Free for taxpayers earning $67,000 or less
  • TCE (Tax Counseling for the Elderly) – Free for seniors
  • AARP Tax-Aide – Free for taxpayers over 50 with low to moderate income

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf

Local Income Taxes

Ohio has the most complex local income tax system in the United States. In addition to state income tax, Ohio has two types of local income taxes:

  1. Municipal Income Tax – Levied by cities and villages
  2. School District Income Tax – Levied by school districts

Municipal Income Tax

Coverage: More than 600 Ohio municipalities levy their own income taxes.

Tax Rates: Generally range from 0.5% to 3%

  • Columbus: 2.5%
  • Cleveland: 2.0%
  • Cincinnati: 1.8%
  • Toledo: 2.25%
  • Akron: 2.5%

Who Must Pay:

  • Residents of the municipality (on all income)
  • Non-residents who work in the municipality (on income earned in the municipality)

Credit for Taxes Paid: Some municipalities provide partial or full credit for taxes paid to another municipality where you work.

Important: Each municipality has its own tax forms, rules, and filing requirements. Some use RITA (Regional Income Tax Agency) or CCA (Central Collection Agency).

Source: https://www.ritaohio.com/ and https://thefinder.tax.ohio.gov/StreamlineSalesTaxWeb/default_municipal.aspx

School District Income Tax

Coverage: More than 200 Ohio school districts levy income taxes.

Tax Rates: Generally range from 0.5% to 2.0%

Who Must Pay:

  • Residents of the school district
  • School district tax applies even if you work outside the district

Type of Tax: School districts can levy either:

  • Traditional base tax – Applies to all income
  • Earned income tax – Applies only to wages, salaries, and self-employment income

Filing Requirement: File Ohio Form SD 100 if you live in a school district with income tax

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/chapter-5748

Finding Your Local Tax Rates

The Finder Tool: Ohio provides “The Finder” tool to determine your local tax obligations:

Enter your address to find:

  • Municipal income tax rate
  • School district income tax rate and type
  • School district number (required for state return)

Source: https://tax.ohio.gov/finder

Example: Total Tax Burden

Scenario: Columbus resident earning $75,000

  • Federal Income Tax: Varies based on filing status and deductions
  • Ohio State Income Tax:
    • $0 on first $26,050
    • 2.75% on $48,950 ($1,346.13)
    • Total state tax: $1,346.13
  • Columbus Municipal Tax: 2.5% of $75,000 = $1,875.00
  • No school district tax (Columbus City School District does not levy income tax)

Total Ohio State and Local Tax: $3,221.13

Source: Calculated from official rates

Important Notes on Local Taxes

  1. Separate Returns: State, municipal, and school district taxes each require separate returns (though they can often be filed together electronically)
  2. Withholding: Employers must withhold for:
    • State income tax
    • Municipal tax (where employee works)
    • School district tax (where employee lives)
  3. Moving: If you move during the year between municipalities or school districts, you must prorate your liability
  4. Reciprocity Does NOT Apply: Ohio’s reciprocal agreements with neighboring states apply ONLY to state income tax, not municipal or school district taxes

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf

Special Considerations for Ohio Income Tax

Remote Workers and Multi-State Taxation

Living in Ohio, Working for Out-of-State Employer

As an Ohio resident, you owe Ohio income tax on ALL income, regardless of where your employer is located.

What this means:

  • Employer location does NOT determine tax obligation
  • Income from out-of-state employers is taxable in Ohio
  • Ohio law requires proper Ohio tax withholding for resident employees

Example: An Ohio resident working remotely for a California company owes Ohio income tax on that income.

Source: https://codes.ohio.gov/ohio-revised-code/section-5747.08

Working in Ohio, Living in Another State

Non-residents who perform work IN Ohio owe Ohio income tax on income earned from work physically performed in Ohio.

Physical Presence Rule: Income is sourced to Ohio based on where work is physically performed.

Important Exception – Reciprocity: Residents of Indiana, Kentucky, Michigan, Pennsylvania, and West Virginia who only earn wage income in Ohio do not pay Ohio tax on those wages.

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.05


Interstate Tax Risk Indicator

Remote workers involving Ohio commonly encounter dual taxation complications with specific states:

Working with these states requires careful planning:

  • New York – Applies convenience of employer rule (may tax Ohio residents working remotely for NY employers)
  • California – Aggressive residency audits for extended work periods
  • Pennsylvania – Complex local earned income taxes in addition to state tax
  • Massachusetts – Telecommuter rule enforcement

Source: State tax regulations and https://codes.ohio.gov/ohio-revised-code/section-5747.05


“Convenience of the Employer” Rule

Ohio does not apply a “convenience of the employer” rule.

Non-residents are taxed only on income from work physically performed in Ohio.

Source: https://codes.ohio.gov/ohio-revised-code/section-5747.20


Reciprocal Agreements

Ohio has reciprocal agreements with the following states:

  • Indiana
  • Kentucky
  • Michigan
  • Pennsylvania
  • West Virginia

What reciprocity means:

  • Residents of these states working in Ohio pay income tax only to their state of residence (not Ohio state tax)
  • Ohio residents working in these states pay income tax only to Ohio (not the work state)
  • Must file exemption certificate with employer (Ohio Form IT 4)

Important Limitations:

  • Reciprocity applies ONLY to wage income
  • Does not apply to business income, rental income, or other non-wage income
  • Does not apply to municipal or school district income taxes

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.05


Multi-State Tax Filing

When earning income in multiple states:

  1. File a resident return in Ohio reporting all income
  2. File non-resident returns in other states where income was earned
  3. Claim a credit on Ohio return for taxes paid to other states

Forms required:

  • Ohio Schedule of Credits (resident credit section)
  • Proof of taxes paid to other states

Credit Limitation: The credit cannot exceed the amount of Ohio tax on the out-of-state income.

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.05

Tax Residency vs Domicile

Understanding the difference between residency and domicile is critical for determining Ohio tax obligations.

Domicile Defined

Domicile is your permanent legal home – the place where you intend to return and consider “home” indefinitely.

Key characteristics:

  • You can have only ONE domicile at a time
  • Domicile continues until you establish a new domicile elsewhere with intent to remain
  • Intent to return is critical – temporary absences do not change domicile

Factors establishing domicile:

  • Where you maintain your primary residence
  • Where you register to vote
  • Where you obtain driver’s license
  • Where you file homestead exemption
  • Where your family resides
  • Where you maintain bank accounts
  • Where you belong to organizations
  • Stated intent in legal documents

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.24

Residency Defined

For Ohio tax purposes: An individual with an abode in Ohio is presumed to be an Ohio resident.

Abode means a dwelling place permanently maintained by an individual, whether owned or rented.

Presumption: If you have an Ohio abode, you are presumed to be an Ohio resident unless you can prove otherwise.

Temporary absence: Being away from your Ohio abode, no matter how long, does not change your residency status.

Example: An Ohio resident who spends winters in Florida but maintains an Ohio home, driver’s license, and voter registration remains an Ohio resident.

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.24

Ohio Contact Period Test

Ohio uses a “contact period” test to determine the burden of proof for nonresidency.

Contact Period = You have an abode outside Ohio + You are away overnight from that abode + You spend any portion of two consecutive days in Ohio

Burden of Proof:

  • Fewer than 213 contact periods: Must show by preponderance of evidence (more likely than not) that you are a nonresident
  • 213 or more contact periods: Must show by clear and convincing evidence that you are a nonresident

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.24

Ohio Nonresident Presumption

New for Tax Year 2025: Individuals who meet ALL five required criteria can establish a presumption that they were nonresidents by checking the “Ohio Nonresident Statement” box on their Ohio return.

Required Criteria:

  1. You did not have an abode in Ohio during any part of the tax year
  2. You maintained an abode in another state during the entire tax year
  3. You did not spend more than 212 contact periods in Ohio
  4. You were not domiciled in Ohio on the last day of the tax year
  5. You were not domiciled in Ohio on January 1 of the tax year

Important: Once this presumption is established, the Ohio Department of Taxation cannot later determine you were an Ohio resident for that tax year.

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.24

Critical Differences
Domicile vs Tax Residency
Factor Domicile Tax Residency
Number allowed One at a time Can be resident of multiple states
Based on Intent + connections Physical presence + abode
Changes when Establish new permanent home with intent Change abode location
Tax impact Taxed as resident on all income Taxed as resident on all income

Documentation Commonly Requested in Residency Audits

Ohio tax authorities may audit residency determinations. The following documentation types are commonly requested:

Primary Residency Evidence
Document Type What It Shows
Driver's License State of legal residence
Voter Registration Where you exercise voting rights
Vehicle Registration Where vehicles are domiciled
Professional Licenses State of professional domicile
Homestead Exemption Primary residence claim
Physical Presence Documentation
Document Type What It Shows
Day-Count Logs Physical location by day (for contact period test)
Travel Records Interstate travel patterns
Credit Card Statements Geographic spending patterns
Cell Phone Records Location data from carrier
E-ZPass / Toll Records State line crossings
Hotel/Lodging Receipts Overnight stays
Property and Financial Ties
Document Type What It Shows
Property Ownership Real estate holdings
Lease Agreements Residence location and duration
Utility Bills Physical occupancy patterns
Bank Statements Financial institution location
Safe Deposit Box Location Where you keep valuables
Social and Family Connections
Document Type What It Shows
Family Location Where spouse/children reside
Medical Records Where you receive regular care
Dental Records Location of regular providers
Religious Affiliation Place of worship attendance
Club Memberships Social/recreational ties
Employment Documentation
Document Type What It Shows
W-2 Forms Employer location, work location
Remote Work Agreement Authorization to work remotely, official work location
Employment Contract Work location requirements
Employer Address Company headquarters
Intent Documentation
Document Type What It Shows
Will/Estate Documents Stated domicile for estate purposes
Tax Returns Prior year residency claims
Insurance Policies Address on file with insurers
Abode Locations Where you maintain dwelling places

Ohio-Specific Audit Triggers:

Common patterns that trigger Ohio residency audits:

  • Claiming nonresidency while maintaining Ohio driver’s license
  • Owning property in Ohio while filing as nonresident
  • Spouse/children residing in Ohio while taxpayer claims other domicile
  • High-income individuals claiming nonresidency
  • Contact periods near 213-day threshold
  • Maintaining Ohio voter registration while claiming nonresidency
  • Having Ohio homestead exemption while filing as nonresident

Burden of Proof:

In Ohio residency disputes:

  • Fewer than 213 contact periods: Taxpayer must prove nonresidency by preponderance of evidence (more likely than not)
  • 213+ contact periods: Taxpayer must prove nonresidency by clear and convincing evidence (substantially more likely than not)

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.24

Note: This section provides factual information about documentation types commonly requested. It does not constitute legal or tax advice.

Military Personnel

Servicemembers Civil Relief Act (SCRA)

Active duty military members stationed in Ohio due to military orders:

  • Do NOT become Ohio residents solely due to military orders
  • Pay income tax to their state of legal residence (home of record)
  • Not subject to Ohio income tax on military pay

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and 50 U.S.C. §4001

Military Spouses Residency Relief Act (MSRRA)

Spouses of active duty military can maintain their home state residency and are not taxed by Ohio on income earned in Ohio if:

  • Spouse is in Ohio solely to be with servicemember
  • Servicemember is in Ohio under military orders
  • Spouse maintains domicile in another state

Ohio Tax Deduction for Nonresident Military Spouses: Civilian spouses who are Ohio nonresidents can deduct all compensation earned in Ohio on Ohio Schedule of Adjustments, line 33.

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and 50 U.S.C. §4001

Military Pay Deductions for Ohio Residents

Ohio Residents Stationed Outside Ohio: Ohio resident servicemembers stationed outside Ohio due to military orders can deduct all military pay and allowances.

Deduction Location: Ohio Schedule of Adjustments, line 32

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.01

Military Retirement Pay

Ohio fully exempts uniformed services retirement income:

  • U.S. Armed Forces retirement pay
  • Reserve component retirement
  • National Guard retirement
  • NOAA Commissioned Corps retirement
  • Public Health Service Commissioned Corps retirement

Deduction Location: Ohio Schedule of Adjustments, line 34

Partial Exemption for Federal Civil Service: If you receive federal civil service retirement based partially on military service, you can deduct the portion attributable to military service.

Calculation Example:

  • 10 years military service + 20 years civilian service = 30 years total
  • Federal pension: $90,000 (included in federal AGI)
  • Deductible portion: $90,000 × (10/30) = $30,000

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.01

Military Injury Relief Fund

Payments from the Ohio Military Injury Relief Fund are fully deductible.

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.023

Disability Severance Payments

Military disability severance payments are fully deductible.

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf

Ohio National Guard Benefits

Ohio National Guard members can deduct:

  • Group life insurance premium reimbursements (for active duty periods)
  • Death benefits paid by Ohio Adjutant General

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf

School District Income Tax for Military

Military servicemembers may be liable for school district income tax if:

  • They are Ohio residents (legal residence/home of record is Ohio)
  • Their domicile is within a school district that imposes income tax
  • This applies even if stationed outside Ohio or outside the school district

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf

Retirees

Social Security Benefits

Ohio does not tax Social Security benefits.

All Social Security retirement, disability, and survivor benefits are fully deductible from Ohio adjusted gross income.

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.01

Pension Income

Private Pensions:

  • Fully taxable in Ohio
  • May qualify for retirement income credit (maximum $200)
  • No specific exemption or deduction

Public Pensions (State/Local Government):

  • Fully taxable in Ohio
  • May qualify for retirement income credit (maximum $200)
  • No specific exemption or deduction

Federal Civil Service Retirement:

  • Fully taxable (except portion attributable to military service)
  • May qualify for retirement income credit (maximum $200)

Railroad Retirement Benefits:

  • Fully deductible (100% exempt from Ohio tax)

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.01

Retirement Income Credit

Eligibility:

  • MAGI less exemptions is less than $100,000
  • Received pension/retirement income on account of retirement
  • Income is included in Ohio AGI
  • Have not claimed lump sum retirement credit

Credit Calculation: Based on amount of eligible retirement income, maximum $200 per return

Important: Social Security and uniformed services retirement income (which are fully deductible) do NOT qualify for this credit since they’re excluded from Ohio AGI.

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.055

Senior Citizen Credit

Eligibility:

  • Age 65 or older on December 31, 2025
  • MAGI less exemptions is less than $100,000
  • Have not claimed lump sum distribution credit

Credit Amount: $50 per return

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.055

Retirement Account Distributions

401(k) and Traditional IRA:

  • Fully taxable in Ohio
  • May qualify for retirement income credit

Roth IRA:

  • Qualified distributions are not taxable (not included in federal AGI)
  • Non-qualified distributions taxable to extent included in federal AGI

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf

Disability and Survivor Benefits

Disability Benefits:

  • Fully deductible from Ohio AGI
  • Not subject to Ohio income tax

Survivor Benefits:

  • Fully deductible from Ohio AGI
  • Not subject to Ohio income tax

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.01


Students

College students attending school in Ohio do NOT automatically become Ohio residents for tax purposes.

You remain a non-resident if:

  • You maintain legal residence (domicile) in another state
  • Your presence in Ohio is temporary for educational purposes
  • You intend to return to your home state after graduation
  • You do not establish Ohio abode with intent to remain

You owe Ohio tax only on Ohio-source income:

  • Wages earned from working in Ohio
  • Scholarships/fellowships used for non-qualified expenses (room, board, travel)

Establishing Ohio residency as a student:

Students CAN become Ohio residents if they take affirmative steps to establish domicile:

  • Register to vote in Ohio
  • Obtain Ohio driver’s license
  • Purchase property in Ohio
  • Maintain Ohio as permanent address
  • Establish intent to remain in Ohio permanently

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.24

Part-Year Residents

If you moved TO or FROM Ohio during 2025, you must file as a part-year resident.

Income allocation:

  • Report all income earned while an Ohio resident
  • Exclude income earned while a resident of another state
  • Prorate personal exemptions based on residency period

Moving TO Ohio:

  • Determine Ohio residency start date (day you establish domicile)
  • Report all income from that date forward to Ohio
  • File non-resident return in former state for income earned before moving

Moving FROM Ohio:

  • Determine Ohio residency end date (day you establish domicile elsewhere)
  • Report all income through that date to Ohio
  • File non-resident or part-year resident return in new state

Credits Available:

  • Part-year residents can claim nonresident credit for income earned while resident of another state
  • Can claim resident credit for non-Ohio income earned while Ohio resident

Form required: Ohio IT 1040 with nonresident credit (IT NRC) calculation

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf

Common Tax Filing Situations

These are factual clarifications based on official Ohio tax guidance and law.

Situation: “My employer is in another state, so I don’t owe Ohio tax”

Ohio law: Ohio residents owe tax on all income regardless of employer location. Employer location does not determine tax obligation. Residency determines tax obligation.

Source: https://codes.ohio.gov/ohio-revised-code/section-5747.02


Situation: “I work remotely full-time, so I don’t owe tax anywhere”

Tax law principle: All income is taxable in at least one jurisdiction. Remote work does not exempt income from taxation. Ohio residents are taxed on worldwide income.

Source: https://codes.ohio.gov/ohio-revised-code/section-5747.02


Situation: “I’m a part-year resident, so I owe half the tax”

Ohio law: Part-year residents owe tax only on income earned during Ohio residency period, not a simple 50% reduction. Must allocate income based on actual residency dates.

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf


Situation: “I don’t have an Ohio driver’s license, so I’m not an Ohio resident”

Ohio law: Residency is based on having an Ohio abode with intent to remain, not solely on driver’s license. You can be an Ohio resident without an Ohio driver’s license.

Source: https://codes.ohio.gov/ohio-revised-code/section-5747.24


Situation: “I spend less than 183 days in Ohio, so I’m not a resident”

Ohio law: Ohio does not use a simple 183-day rule. Residency is based on having an abode in Ohio. The contact period test (213 contact periods) determines burden of proof, not residency itself.

Source: https://codes.ohio.gov/ohio-revised-code/section-5747.24


Situation: “Municipal taxes are optional”

Ohio law: If you live or work in a municipality with income tax, you must file and pay that tax. Municipal taxes are mandatory, not optional.

Source: Municipal ordinances and https://www.ritaohio.com/

Forms & Publications

Primary Tax Return Forms

Resident return:

Simplified return:

  • Form IT 10 – Simplified Individual Income Tax Return (for qualifying taxpayers)
  • Instructions: Included with form
  • Download: https://tax.ohio.gov/forms

Non-resident/part-year return:

Common Schedules

  • Schedule of Adjustments – Additions and deductions to federal AGI
  • Schedule of Business Income – Business income calculation and deduction
  • Schedule of Credits – Tax credits
  • Schedule of Dependents – Dependent information
  • Schedule of Withholding – Ohio withholding from W-2s and 1099s
  • IT NRC – Nonresident Credit calculation
  • IT RC – Resident Credit calculation

School District Income Tax

Withholding Forms

Exemption Certificates

Reciprocity Exemption:

Military Spouse Exemption:

Key Publications

Where to Submit Paper Returns

Individual Income Tax (IT 1040):

With payment:

Ohio Department of Taxation
PO Box 2057
Columbus, OH 43270-2057

Without payment:

Ohio Department of Taxation
PO Box 2679
Columbus, OH 43270-2679

Payment only:

Ohio Department of Taxation
PO Box 182131
Columbus, OH 43218-2131

School District Income Tax (SD 100):

With payment:

Ohio Department of Taxation
PO Box 182389
Columbus, OH 43218-2389

Without payment:

Ohio Department of Taxation
PO Box 182197
Columbus, OH 43218-2197

Payment only:

Ohio Department of Taxation
PO Box 182389
Columbus, OH 43218-2389

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf

Penalties and Interest

Late Filing Penalty

Ohio imposes a penalty for filing late (after the due date or extended due date):

Penalty Rate: The lesser of:

  • $50, OR
  • 10% per month of unpaid tax (maximum 50%)

The penalty applies from the due date until the return is filed.

Source: https://codes.ohio.gov/ohio-revised-code/section-5747.15

Late Payment Penalty

Ohio imposes a penalty for paying late (after the due date):

Penalty Rate: The lesser of:

  • 10% per month of unpaid tax (maximum 50%), OR
  • 50% of the delinquent payment

The penalty applies from the due date until the tax is paid.

Source: https://codes.ohio.gov/ohio-revised-code/section-5747.15

Interest on Unpaid Tax

Interest accrues on unpaid tax from the due date (April 15, 2026) until paid.

Interest Rate for 2026: 7% per annum

Interest is compounded daily and is in addition to any penalties.

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5703.47

Interest Calculator: Ohio provides an interest calculator at https://tax.ohio.gov/interestcalculator

Source: https://tax.ohio.gov/interestcalculator

Underpayment of Estimated Tax Penalty

If you have income not subject to withholding, you may owe a penalty for underpaying estimated taxes.

Penalty Applies If:

  • Your Ohio tax liability (total tax minus credits) less Ohio withholding exceeds $500, AND
  • You did not pay sufficient estimated tax through quarterly payments

Safe Harbor Provisions:

The penalty may be avoided if estimated payments total at least:

  • 90% of current year’s tax liability, OR
  • 100% of prior year’s tax liability

Calculation: Form IT/SD 2210 – Underpayment of Estimated Tax Penalty

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.09

Frivolous Return Penalty

If you file a frivolous return or one that shows apparent intent to delay or impede tax administration:

Penalty: Up to $500

Source: https://codes.ohio.gov/ohio-revised-code/section-5747.15

Fraudulent Attempt to Evade Tax

If you make a fraudulent attempt to evade reporting or payment:

Penalty: Greater of:

  • $1,000, OR
  • 100% of the tax required to be shown on the return

Source: https://codes.ohio.gov/ohio-revised-code/section-5747.15

False or Fraudulent Refund Claim

If you make a false or fraudulent claim for refund:

Penalty: Greater of:

  • $1,000, OR
  • 100% of the fraudulent claim

Assessment: Can be assessed without time limitation

Source: https://codes.ohio.gov/ohio-revised-code/section-5747.15

Exception for Certain Military Servicemembers

Certain military servicemembers may not be subject to interest and penalties under specific circumstances defined in Ohio Revised Code Section 5747.026.

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf and https://codes.ohio.gov/ohio-revised-code/section-5747.026


Information Verification Log

Ohio Income Tax – Official Sources
Authoritative references for Ohio individual income tax rules and filings
Information Type Source Last Verified
Tax rates and brackets Ohio IT-1040 Booklet (2025) February 12, 2026
Personal exemption amounts Ohio IT-1040 Booklet (2025) February 12, 2026
Tax credits Ohio IT-1040 Booklet (2025) February 12, 2026
Filing deadlines Ohio IT-1040 Booklet (2025) February 12, 2026
Reciprocity agreements Ohio IT-1040 Booklet (2025) February 12, 2026
Forms and publications Ohio Department of Taxation – Forms February 12, 2026
Ohio Revised Code Ohio Revised Code – Chapter 5747 February 12, 2026

Official Ohio Income Tax Resources

All information on this page is compiled exclusively from official government sources.

Ohio Department of Taxation

The Finder Tools

Source: https://tax.ohio.gov/finder

Ohio Revised Code and Regulations

Ohio Revised Code:

Ohio Administrative Code:

Ohio General Assembly:

Source: https://codes.ohio.gov/

Contact Information

Phone:

  • General Inquiries: 1-800-282-1780
  • Refund Status: 1-800-282-1784 (24-hour automated hotline)

Hours: 8:00 AM to 5:00 PM, Monday through Friday (excluding holidays)

Live Chat: 9:00 AM to 3:00 PM, Monday through Friday (excluding holidays) Available at: https://tax.ohio.gov/OHTAX

Email: Contact through OH|TAX eServices or forms on website

Mailing Address:

Ohio Department of Taxation
4485 Northland Ridge Blvd
Columbus, OH 43229-6596

Welcome Center (In-Person): 4485 Northland Ridge Blvd, Columbus, OH 43229-6596 (Photo ID required for all visitors) Hours: 8:00 AM to 5:00 PM, Monday through Friday

Appointments: Schedule at https://tax.ohio.gov/contact

Accessibility: Ohio Relay Service: 7-1-1 or 1-800-750-0750

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf

Free Tax Assistance

VITA (Volunteer Income Tax Assistance): For taxpayers earning $67,000 or less Find locations: https://www.irs.gov/individuals/free-tax-return-preparation-for-qualifying-taxpayers Phone: 1-800-906-9887

TCE (Tax Counseling for the Elderly): For seniors and individuals with disabilities Find locations: https://www.irs.gov/individuals/free-tax-return-preparation-for-qualifying-taxpayers

AARP Tax-Aide: For taxpayers over 50 with low to moderate income Find locations: https://www.aarp.org/money/taxes/aarp_taxaide/ Phone: 1-888-227-7669

Source: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf

Local Tax Administration

RITA (Regional Income Tax Agency): https://www.ritaohio.com/ Administers municipal income tax for many Ohio municipalities

CCA (Central Collection Agency): Various municipalities use CCA for tax collection

Individual Municipal Tax Departments: Contact your municipality directly for local tax information

Source: https://www.ritaohio.com/ and individual municipal websites

Where to Check for Updates

Current Tax Rate Tables

Ohio Department of Taxation – Tax Forms: https://tax.ohio.gov/forms – Updated annually, typically published November

Ohio IT 1040 Instructions Booklet: https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf

Source: https://tax.ohio.gov/forms

Forms Library

Ohio Department of Taxation Forms: https://tax.ohio.gov/forms – Forms available starting November/December each year for upcoming tax year

Source: https://tax.ohio.gov/forms

Legislative Changes

Ohio General Assembly – Tax Legislation:

Ohio Department of Taxation – Information Releases: https://tax.ohio.gov/info – Guidance on new legislation

Source: https://codes.ohio.gov/ and https://tax.ohio.gov/info

Administrative Guidance

Ohio Tax Bulletins: https://tax.ohio.gov/info – Technical advisories and guidance

Ohio Administrative Code: https://codes.ohio.gov/ – Title 5703 (Taxation)

Frequently Asked Questions: https://tax.ohio.gov/FAQ – Searchable by tax type and topic

Source: https://tax.ohio.gov/ and https://codes.ohio.gov/

Taxpayer Notices

Ohio Department of Taxation News: https://tax.ohio.gov/ – Latest announcements and updates

OH|TAX eServices Platform: https://tax.ohio.gov/OHTAX – Online portal for filing and account management

Ohio Virtual Tax Academy: https://tax.ohio.gov/OVTA – Webinars and educational content

Source: https://tax.ohio.gov/

Email and Social Media Updates

Email Subscription: Subscribe to updates through OH|TAX eServices or Ohio Department of Taxation website

Social Media:

  • Facebook: Ohio Department of Taxation
  • YouTube: @OhioDeptOfTaxation
  • LinkedIn: The Ohio Department of Taxation

Source: https://tax.ohio.gov/

Note: This page will be reviewed and updated in January 2027 for Tax Year 2026. For real-time updates, always consult official Ohio Department of Taxation website.

Tax Glossary

Abode: A dwelling place permanently maintained by an individual, whether owned or rented.

Adjusted Gross Income (AGI): Total income minus specific adjustments. For federal: IRS Form 1040, line 11a. For Ohio: Ohio IT 1040, line 3.

Business Income: Income from transactions in the regular course of trade or business, including sole proprietorships, partnerships, S corporations, and certain capital gains. First $250,000 is deductible in Ohio.

Contact Period: For Ohio residency purposes: Having an abode outside Ohio + being away overnight + spending any portion of two consecutive days in Ohio.

Domicile: Your permanent legal home – the place you intend to return to indefinitely. You can have only one domicile.

Exemption: Fixed dollar amount that reduces taxable income. Ohio uses personal exemptions instead of a standard deduction ($1,900 to $2,400 per person for Tax Year 2025, based on MAGI).

Filing Status: Category determining tax treatment: Single, Married Filing Jointly, Married Filing Separately, Head of Household, Qualifying Surviving Spouse.

MAGI (Modified Adjusted Gross Income): Ohio adjusted gross income plus business income deduction. Used to determine exemption amounts and credit eligibility.

Municipal Income Tax: Local income tax levied by Ohio cities and villages (generally 0.5% to 3%).

Nonbusiness Income: Any income other than business income. Includes most W-2 wages (unless from 20%+ owned entity), interest, dividends, capital gains from non-business property.

Nonresident: Individual who is not an Ohio resident for the entire tax year. Only taxed on Ohio-source income.

Part-Year Resident: Individual who moved into or out of Ohio during the tax year. Taxed on all income during residency period, plus Ohio-source income during nonresidency period.

Reciprocity: Agreement between Ohio and neighboring states (IN, KY, MI, PA, WV) where residents working across state lines pay tax only to their state of residence. Applies only to wage income.

Resident: Individual domiciled in Ohio or who has an Ohio abode and is presumed to be resident unless proven otherwise.

School District Income Tax: Local income tax levied by Ohio school districts (generally 0.5% to 2%). Over 200 school districts impose this tax.

Tax Credit: Dollar-for-dollar reduction in tax owed (e.g., $100 credit reduces tax by $100).

Tax Deduction: Reduces taxable income (e.g., $100 deduction saves tax based on your rate, approximately $3 to $10 depending on income).

Taxable Income: Income subject to tax after subtracting adjustments, deductions, and exemptions.

Withholding: Tax deducted from paycheck by employer and sent to the state on your behalf.

Update History

This section documents all material changes to Ohio income tax information on this page.

February 2026 – Initial Publication

  • Published comprehensive Ohio income tax guide for Tax Year 2025 (returns filed in 2026)
  • Documented three-bracket progressive system (0%, 2.75%, 3.125%)
  • Included new 2025 provisions:
    • Ohio Educator Expense Deduction increased to $300
    • Home School Expense Credit changed to $250 per student
    • Pregnancy Resource Center contribution deduction added
    • Ohio Nonresident Statement provision (new Form IT 1040 checkbox)
    • Transformational Mixed-Use Development Credit added
    • Exemption phase-out at $750,000 MAGI
  • Documented upcoming 2026 changes:
    • Flat 2.75% rate on income over $26,050
    • Exemption phase-out reduced to $500,000 MAGI
  • Verified all information from official Ohio Department of Taxation sources
  • All sections verified from:
    • Ohio IT 1040 Instructions Booklet (November 2025)
    • Ohio Revised Code Chapter 5747
    • Ohio Department of Taxation website

Primary Sources:

Verification Date: February 12, 2026


Verification Schedule

Annual Update: January each year

  • New tax rates and brackets
  • Legislative changes from prior year
  • Form updates
  • Credit and deduction changes

Mid-Year Review: June

  • Legislative changes from spring session
  • Administrative guidance updates
  • New information releases

Continuous Monitoring:

  • Emergency tax legislation
  • Disaster relief provisions
  • Court decisions affecting tax law
  • Administrative code changes

Source Link Verification: Quarterly

  • All .gov URLs verified functional
  • Broken links replaced with current URLs
  • PDF versions archived when available

Last comprehensive update: February 12, 2026
Next scheduled review: January 2027 (for Tax Year 2026 updates)

Others

Legal Disclaimer: Nature of This Compilation This document is a compilation of publicly available information from official government sources. It is NOT: Legal advice An interpretation of laws or regulations A substitute for consultation with a licensed attorney A comprehensive treatment of all applicable laws Guaranteed to be complete or current