Ohio Tax Guide 2025

Navigating the complexities of state taxes can be daunting, but understanding Ohio's tax landscape is essential for residents and newcomers alike.

In this guide, we'll explore key components of The Buckeye State's tax system, from income and sales taxes to property taxes and retirement benefits.

Ohio state tax: Overview

Some workers in Ohio may see a bit more money in their paychecks this year, thanks to recent changes that lowered income taxes across the board.

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But it's not all low taxes in the Buckeye State. Property taxes tend to be higher than in many other states, and Ohio drivers face one of the highest gas taxes in the country. So while there’s some relief on the income tax front, other costs can still add up.

In the news: As retail giants across the U.S. warn of looming price hikes, families looking forward to the upcoming school year are bracing for impact.

Prices for back-to-school and college supplies have been on the rise, and made worse by the Trump administration’s sweeping tariffs on imported goods. To soften the blow of rising costs, Ohio Gov. Mike DeWine announced that the state sales-tax holiday will once again run for two full weeks.

For more information, see Ohio Announces Two-Week Sales Tax Holiday Amid Tariffs, High Prices.

[Data for this state tax guide was gathered from a number of sources including the Census Bureau, the state’s government website, the Sales Tax Handbook, and the Tax Foundation. Property taxes are cited as a rate percentage rather than the assessed value.]

Ohio income tax

Ohio has a graduated state individual state income tax rate ranging from 2.75% to 3.5%, according to the Tax Foundation.

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

Ohio retirement taxes

Ohio taxes most types of retirement income, but military retirement pay is tax-exempt, and the state’s tax brackets are low when compared with other states. There is no estate or inheritance tax in Ohio.

Tax on Taxable Income: Low of 2.75% (on between $26,051 - $100,000) and a high of 3.5% (on more than $100,000)

(Note: Ohio tax brackets depend on residency and filing status.)

• Social Security: Not taxable
• Pensions: Taxable
• 401(k) and IRA Distributions: Taxable

Ohio sales tax

The state sales tax rate in Ohio is 5.75%.

Localities can add as much as 2.5%, and the average combined rate is 7.23%, according to the Tax Foundation.

• Groceries: Exempt
• Prescription drugs: Exempt
• Diapers: Exempt
• Menstrual products: Exempt
• Clothing: Taxable

How much are property taxes in Ohio?

In Ohio, the average effective property tax rate is 1.31%, which is higher than in most states.

Ohio Property Tax Breaks for Retirees

A homestead exemption is available for qualified homeowners, which allows up to $28,000 exemption of a home's market value from all local property taxes. Ohioans must have a household income that does not exceed $40,000 for 2025.

Homeowners must also meet one of the following criteria to qualify.

• Be 65 or older
• Have a permanent and total disability
• Be at least 59 years old and the surviving spouse of a deceased taxpayer who had previously received the exemption

Note: Taxpayers who were granted the exemption prior to 2014 will continue to receive it.

Ohio gas tax

Source: Sales Tax Handbook

Ohio taxes on alcohol and tobacco

Source: Sales Tax Handbook

Source: Sales Tax Handbook

Ohio estate and inheritance tax

Ohio doesn't have an estate or an inheritance tax.

Related

• Ohio Announces Two-Week Sales Tax Holiday Amid Tariffs, High Prices
• States With the Highest Gas Taxes
• Property Tax Cap: Does Your State Have One?
• Taxes in Retirement: How All 50 States Tax Retirees