Ohio Tax: Guide to Income, Sales, Property, and Retirement Taxes

picture of the Ohio state flag on a pole against a blue sky and budding tree

(Image credit: Getty Images)

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 property tax bills soar in the Buckeye State, Ohio homeowners may soon get relief.

Starting in 2026, two methods of raising property taxes will be eliminated. Not only that, but a working group assembled by Gov. Mike DeWine has put forth 20 proposals that may provide residents with property tax cuts. The proposals are awaiting action from the General Assembly, while the state House has a $1.7 billion property tax relief bill in the works.

For more information, check out Kiplinger's report, Ohio Property Tax Shock: Why Your New Assessment Is So High (And What Comes Next).

[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

picture of the skyline in downtown Columbus, Ohio

Ohio previously had a graduated state individual income tax rate ranging from 2.75% to 3.5%, according to the Tax Foundation. But for 2026, the state has moved to a flat 2.75% tax rate.

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

Still life of a small shopping cart with $1 USD bills

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

rendering of a yellow car against a yellow background

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Gasoline	$0.28 per gallon
Diesel	$0.28 per gallon

Source: Sales Tax Handbook

Ohio taxes on alcohol and tobacco

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Ohio tobacco taxes
Product	Tax Amount
Cigarettes	$1.60 per pack
Other tobacco products	17% of wholesale price
Medical Marijuana	5.75%

Source: Sales Tax Handbook

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Ohio alcohol taxes
Product	Tax Amount
Beer	$0.18 per gallon
Wine	$0.32 per gallon
Liquor	State-Controlled

Source: Sales Tax Handbook

Ohio estate and inheritance tax

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

Katelyn has more than 6 years of experience working in tax and finance. While she specialized in tax content while working at Kiplinger from 2023 to 2024, Katelyn has also written for digital publications on topics including insurance, retirement, and financial planning and had financial advice commissioned by national print publications. She believes knowledge is the key to success and enjoys providing content that educates and informs.