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%.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of Kiplinger’s expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of Kiplinger’s expert advice - straight to your e-mail.
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 $26,051 to $46,100)
High: High: 3.99% (on taxable income over $115,300)
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.
-
-
Short-Term Investments to Protect Against Inflation and Market Volatility
Rates on Series I savings bonds, T-bills and fixed annuities are all above historical averages and could serve investors well during turbulent times like these.
-
What’s the Difference Between Average and Actual Rate of Return?
An average rate of return can mask losses over time, so what investors really want to keep an eye on is the actual rate of return.
-
Student Loan Forgiveness Blocked For Now Due to Court Ruling
For now, a Texas federal court ruling has caused the Biden administration to block new applications for student loan forgiveness.
-
$2.04 Billion Powerball Lottery Jackpot Winner Will Have a Massive Tax Bill
The $2.04 billion-dollar Powerball jackpot has its big winner and the federal government will get a big chunk of the prize from taxes.
-
New “Stimulus” Check 2022: Massachusetts Tax Refund Money is Being Sent Now
Massachusetts is returning nearly $3 billion to eligible taxpayers In November and December through tax refunds.
-
What's the Standard Deduction for 2022 vs. 2023?
Tax Breaks Most Americans claim the standard deduction on their federal tax return instead of itemized deductions. How much can you claim on your 2022 and 2023 returns?
-
What Are the Capital Gains Tax Rates for 2022 vs. 2023?
capital gains tax The capital gains tax rate that applies to a capital gain depends on the type of asset, your taxable income, and how long you held the property sold.
-
Virginia 2022 “Stimulus” Tax Rebates
Many eligible Virginians have received an up to $500 tax rebate check for 2022.
-
What Are the Income Tax Brackets for 2022 vs. 2023?
tax brackets Depending on your taxable income, you can end up in one of seven different federal income tax brackets – each with its own marginal tax rate.
-
California Stimulus Checks: More Debit Cards Being Sent This Week
If your last name begins with N to V, a California stimulus payment debit card could be on its way to you soon.
