Ohio State Tax Brackets and Income Rates

Ohio imposes a state-level income tax on its residents using a progressive structure, where the tax rate increases as income rises. The tax applies to most forms of income earned by individuals, trusts, and estates within the state. This framework is distinct from local taxes, which are levied separately by municipalities and school districts.

Determining Your Ohio Taxable Income

The starting point for calculating your state tax is your Federal Adjusted Gross Income (AGI), which is found on your federal income tax return. From this federal figure, you subtract specific Ohio adjustments to arrive at your Ohio Taxable Income. These adjustments include deductions and exemptions that are unique to the state’s tax code.

A primary way taxpayers reduce their AGI for state purposes is through personal and dependent exemptions. Ohio law allows you to claim an exemption for yourself, your spouse, and each dependent. The value of these exemptions is tied to your income level. For instance, taxpayers with an income of $40,000 or less can claim a $2,400 exemption, while those with income between $40,001 and $80,000 can claim a $2,150 exemption. For incomes above $80,000, the exemption amount is $1,900.

Ohio’s Income Tax Brackets and Rates

Ohio’s income tax system is structured with multiple tax brackets that apply to non-business income. For the 2024 tax year, the state has consolidated its brackets, applying different rates to different portions of a taxpayer’s income.

For the 2024 tax year, which you will file in 2025, Ohio’s income tax rates are as follows:

$0 to $26,050: 0%
$26,051 to $100,000: 2.75%
Over $100,000: 3.5%

Income from business activities may be treated differently. For sole proprietorships and pass-through entities, the first $250,000 of business income is deductible, with income beyond that amount taxed at a flat 3% rate.

Calculating Your State Tax Liability

To calculate your tax liability, you apply the marginal rates to the portions of your Ohio Taxable Income that fall into each bracket. For example, consider a taxpayer with an Ohio Taxable Income of $110,000.

The first $26,050 of their income is taxed at 0%, resulting in $0 of tax. The next portion of income, from $26,051 up to $100,000 (a total of $73,950), is taxed at the 2.75% rate, which equals $2,033.63. The final portion of income, which is the amount over $100,000 ($10,000 in this case), is taxed at the 3.5% rate, adding $350 to the liability. The total state tax liability for this individual would be the sum of these amounts, or $2,383.63.

Local Income Taxes

Beyond the state income tax, many municipalities and school districts in Ohio impose their own local income taxes. These taxes are separate from and in addition to the state-level tax and are a source of funding for local government services and schools. Unlike the state’s progressive bracket system, local income taxes are typically levied as a flat percentage of your income.

The specific rate you are required to pay depends entirely on where you live and, in some cases, where you work. These rates can vary significantly from one jurisdiction to another. To determine the exact local and school district income tax rates applicable to you, the Ohio Department of Taxation provides an online tool called “The Finder.” This resource allows you to look up your specific address to identify the correct local tax obligations.