state tax

Ohio State Tax Guide

State tax rates and rules for income, sales, property, fuel, cigarette, and other taxes that impact Ohio residents.

Bottom Line

Middle-Class Families: Not Tax-Friendly (Go to the Kiplinger Tax Map for Middle-Class Families)
Retirees: Not Tax-Friendly (Go to the Kiplinger Tax Map for Retirees)

The state income tax burden in Ohio is reasonably light, with a top tax bracket of 3.99%. But watch out for municipal and school district income taxes, as these can run as high as an additional 3%.

Property taxes in the Buckeye State lean high, too. Ohio's median property tax rate is the 13th-highest in the nation.

Sales taxes in the state are relatively modest. That helps keep Ohio out of the "least tax-friendly" category. And there are no estate or inheritance taxes to worry about.

Ohio Income Taxes

Ohio Income Tax Range

Low: 2.765% (on taxable income from $25,001 to $44,250)

High: High: 3.99% (on taxable income over $110,650)

Cities and school districts in Ohio can also impose local income taxes.

Ohio Taxation of Social Security Benefits

Social Security benefits are not taxed by the state.

Ohio Tax Breaks for Other Retirement Income

Military pensions and Railroad Retirement benefits are exempt.

Ohio also has four tax credits for retirees with a state tax base of $100,000 or less. The retirement income credit is worth $25 to $200, depending on the amount of qualifying income from a pension or retirement plan (including 401(k) plans and IRAs). In addition, taxpayers age 65 and older can claim the senior citizen credit, which is worth $50 per tax return. The lump-sum retirement credit is for taxpayers who receive a lump-sum distribution on account of retirement from a pension or retirement plan. The lump-sum distribution credit is for taxpayers age 65 or older who receive a lump-sum distribution from a pension or retirement plan. Claiming one credit or exemption may impact the ability to claim others.

Ohio Sales Tax

5.75% state levy. Localities can add as much as 2.25%, and the average combined rate is 7.22%, according to the Tax Foundation.

  • Groceries: Exempt
  • Clothing: Taxable
  • Motor Vehicles: Taxable
  • Prescription Drugs: Exempt

Ohio Real Property Taxes

In Ohio, the median property tax rate is $1,532 per $100,000 of assessed home value.

Ohio Property Tax Breaks for Retirees

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 up to $25,000 of their home's market value from all local property taxes. For 2022, eligibility for new exemptions is limited to qualifying taxpayers (by age) with Ohio adjusted gross income of $34,600 or less. Taxpayers who were already granted the exemption will continue to receive it.

Ohio Motor Fuel Taxes

Gasoline: 38.51¢ per gallon.
Diesel: 47.01¢ per gallon.

Ohio Sin Taxes

Cigarettes: $1.60 per pack (additional $0.35 per pack in Cuyahoga County)
Cigars: 17% of the wholesale price with a cap of $0.54 per cigar
Little cigars: 37% of the wholesale price
Chewing tobacco: 17% of the wholesale price
Snuff: 17% of the wholesale price
Vapor products: $0.10 per ml

Beer: $0.18 per gallon
Wine: $0.32 per gallon ($1.50 if sparkling)
Liquor: $9.83 per gallon (the liquor tax is an estimate by the Distilled Spirits Council of the United States and published by the Tax Foundation)
Cuyahoga County has additional excise taxes on all alcohol.

Ohio Estate and Inheritance Taxes

No estate or inheritance tax.

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