How Much Tax Is Deducted From a Paycheck in Ohio?
Understand the various mandatory deductions from your Ohio paycheck. Gain clarity on how your take-home pay is determined by tax withholdings.
Paychecks include various deductions that reduce gross earnings. Taxes are a significant portion of these withholdings, funding public services. Understanding these deductions is important for personal financial management. Tax withholding ensures individuals contribute to their annual tax obligations throughout the year, avoiding a large lump-sum payment at tax filing time.
Federal Payroll Tax Withholding
Federal payroll taxes are a mandatory deduction from most paychecks, encompassing Federal Income Tax (FIT) and Federal Insurance Contributions Act (FICA) taxes. Federal Income Tax withheld depends on information provided by the employee on IRS Form W-4. This form guides employers on how much income tax to retain based on factors such as filing status, multiple jobs, and claimed dependents or other credits.
FICA taxes contribute to Social Security and Medicare programs. For 2025, the Social Security tax rate for employees is 6.2% on earnings up to a wage base limit of $176,100. Earnings above this threshold are not subject to Social Security tax. The Medicare tax rate is 1.45% on all earnings, with no wage base limit.
An additional Medicare Tax of 0.9% applies to earned income exceeding certain thresholds: $200,000 for single filers and heads of household, $250,000 for married couples filing jointly, and $125,000 for married individuals filing separately. Employers are required to withhold this additional tax once an employee’s wages surpass the $200,000 mark in a calendar year, regardless of filing status. However, there is no employer match for this additional Medicare Tax.
Ohio State Income Tax
Ohio imposes a state income tax on residents’ earnings, operating under a progressive system where higher incomes are subject to higher rates. For 2025, Ohio uses three tax rates: 0%, 2.75%, and 3.5%. Income up to $26,050 is not subject to state income tax.
The amount of state income tax withheld from an employee’s paycheck is determined by the Ohio IT 4 form. Similar to the federal W-4, this form allows employees to declare their marital status, number of exemptions, and any additional withholding they desire. Employers use the information provided on the IT 4 to calculate the appropriate state income tax withholding for each pay period. Employees should update their IT 4 form if their personal or financial situation changes.
Ohio Local Income Taxes
Ohio’s tax landscape includes local income taxes, levied by many municipalities. These taxes are typically assessed at a flat rate, but the specific rate and application depend on where an individual resides or works. Some municipalities tax residents, others tax non-residents earning income within city limits, and some tax both.
Employees in Ohio commonly have two local income tax withholdings if their residence and employment are in different municipalities that both levy an income tax. The municipality where income is earned typically has the first claim to the tax. Many Ohio cities provide a credit for income tax paid to another municipality. This credit often ensures the total local tax burden does not exceed the higher of the two applicable municipal rates. Individuals should identify the specific municipal tax rates and credit provisions applicable to their situation.
Factors Influencing Tax Withholding
Beyond static tax rates, several dynamic elements influence the amount of taxes deducted from a paycheck. Adjustments to IRS Form W-4 and the Ohio IT 4 form directly impact federal and state income tax withholding. For example, claiming fewer dependents or requesting additional withholding can lead to more taxes withheld, potentially resulting in a smaller tax bill or larger refund at year-end.
Certain pre-tax deductions can also reduce an individual’s taxable income. Contributions to employer-sponsored plans such as 401(k)s, health insurance premiums, Flexible Spending Accounts (FSAs), and Health Savings Accounts (HSAs) are typically made with pre-tax dollars. These deductions decrease the gross pay subject to federal and state income taxes, and sometimes FICA taxes.
The frequency of pay, whether weekly, bi-weekly, or monthly, can subtly affect the per-paycheck withholding amount, even if the annual tax liability remains consistent. Supplemental wages like bonuses are often subject to different withholding rules than regular pay. Employers may use a flat percentage method, commonly 22% for federal income tax, to withhold taxes from bonus payments. This can result in a seemingly higher percentage of tax withheld from a bonus compared to a regular paycheck, but the overall annual tax liability is reconciled when filing a tax return.