OHIO
Return to Retiree Tax Map
NICKNAME
The Buckeye State
BOTTOM LINE: MIXED TAX PICTURE
Ohio exempts Social Security benefits from state income taxes and also allows retirees to claim a tax credit of up to $200 on other types of retirement income. Ohio's income-tax rates range from a low of 0.587% to a high of 5.925% on income over $208,500. Real estate is assessed at 35% of market value, and a homestead exemption is available to residents 65 and older.
STATE SALES TAX
5.5%. Food, newspapers, magazine subscriptions, telephone service and prescription drugs are exempt. Counties levy additional sales taxes, which could add up to 2.25%.
INCOME-TAX RANGE
Low: 0.587% (on up to $5,100 of taxable income)
High: 5.925% (on taxable income over $208,500)
SOCIAL SECURITY
Benefits are not taxed.
EXEMPTIONS FOR OTHER RETIREMENT INCOME
Two credits are offered, but if a taxpayer is eligible for both, only one credit is allowed for each tax return. Seniors 65 and older may claim a $50 credit. The other credit is worth up to $200 if retirement income is at least $800, plus a one-time credit on lump sums. The retirement-income credit can be applied to out-of-state government pensions. Military pensions are eligible for a deduction to the extent that income is not otherwise deducted or excluded.
PROPERTY TAXES
Property is taxed based on its assessed value, which is 35% of market value. County auditors must reappraise all real estate every six years.
Tax breaks for seniors: 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 $25,000 of their home’s market value from all local property taxes.
INHERITANCE AND ESTATE TAXES
Ohio has no inheritance tax, but an estate tax is levied against the value of a resident decedent’s estate for deaths occurring before January 1, 2013. If the net taxable estate is more than $338,333 but not more than $500,000, the tax is $13,900 plus 6% of the excess over $338,333. If the net taxable estate is over $500,000, the tax is $23,600 plus 7% of the excess over $500,000. There is no estate tax for deaths occurring on or after January 1, 2013.
Visit RetirementLiving.com for a complete rundown of taxes in Ohio.
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