How Much Tax Is Taken Out of My Paycheck in Ohio?

Various taxes are withheld from your earnings, contributing to government services at federal, state, and local levels. For individuals working in Ohio, understanding these withholdings involves specific state and municipal tax structures in addition to federal requirements. This article clarifies the different types of taxes taken from a paycheck, showing how gross wages translate into net pay.

Federal Payroll Taxes

Federal payroll taxes fund national programs and represent a significant portion of paycheck deductions. These include federal income tax withholding and Federal Insurance Contributions Act (FICA) taxes. Federal income tax withholding is an estimated payment toward an individual’s annual income tax liability, calculated based on gross wages and information from the employee’s Form W-4. The amount withheld is influenced by filing status, claimed dependents, and other adjustments on the W-4 form.

FICA taxes are mandatory contributions that fund Social Security and Medicare. For 2025, the Social Security tax rate is 6.2% for employees, applied to earnings up to an annual wage base limit of $176,100. The Medicare tax rate is 1.45% for employees and applies to all earned income, as there is no wage base limit. An additional Medicare tax of 0.9% applies to wages exceeding $200,000 for single filers or $250,000 for married couples filing jointly; employers do not contribute to this additional amount.

Ohio State Income Tax

Ohio levies a progressive state income tax on its residents, meaning different portions of income are taxed at varying rates. For income earned in 2025, Ohio’s system applies a 0% rate for income up to $26,050. Income between $26,051 and $100,000 is taxed at 2.75%, and income over $100,000 is taxed at 3.125%.

Employers withhold state income tax from paychecks based on these brackets and the individual’s income level. Starting in 2026, Ohio will transition to a flat tax rate of 2.75% for all income above $26,050. While Ohio does not differentiate brackets by single or joint status, state-specific elements like credits for dependents can influence the final tax liability and withholding amount.

Local Income Taxes in Ohio

Ohio has a distinct local tax landscape, with many municipalities levying their own income taxes in addition to the state income tax. Over 400 cities and villages in Ohio impose a municipal income tax, typically flat-rate taxes on earned income like wages and salaries. These local rates vary significantly, generally ranging from 0.50% to 3%, with some larger cities having rates around 2.5%.

The specific local tax depends on where an individual lives (residency) and works (work location). If an individual lives in one Ohio municipality and works in another, both might attempt to tax their income. To mitigate potential double taxation, Ohio has reciprocity agreements with its bordering states—Indiana, Kentucky, Michigan, Pennsylvania, and West Virginia. These agreements mean that if an Ohio resident works in one of these states, their wages are taxable only by Ohio, and vice versa. However, these reciprocity agreements typically apply only to state income taxes and may not cover local or county-level taxes in those bordering states.

Understanding Your Paycheck and Adjusting Withholding

Interpreting your pay stub is important for understanding your take-home pay. Pay stubs typically list various deductions, including federal, state, and local taxes, often identified by specific codes. Common federal tax codes include “FIT” or “FWT” for Federal Income Tax, and “FICA,” “SS,” or “Med” for Social Security and Medicare taxes. State income tax may appear as “SIT” or “OH SIT,” while local municipal taxes might be labeled as “Muni Tax” or by the specific city’s abbreviation.

Reviewing these deduction codes helps verify that the correct amounts are being withheld. If you find that too much or too little federal income tax is being withheld, you can adjust your withholding by submitting a new Form W-4 to your employer. The W-4 form allows you to specify your filing status, claim dependents, and indicate any additional income or deductions to ensure accurate withholding. Many states, including Ohio, also have similar state-specific forms to adjust state income tax withholding. It is advisable to periodically review your withholding, especially after significant life changes such as marriage, divorce, or the addition of dependents, to avoid unexpected tax liabilities or large refunds at year-end.