Ohio Tax Guide 2025
Explore Ohio's 2025 state tax rates for income, sales, property, retirement, and more. Learn how Ohio compares nationwide.
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
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
Gasoline | $0.28 per gallon |
Diesel | $0.28 per gallon |
Source: Sales Tax Handbook
Ohio taxes on alcohol and tobacco
Product | Tax Amount |
|---|---|
Cigarettes | $1.60 per pack |
Other tobacco products | 17% of wholesale price |
Medical Marijuana | 5.75% |
Source: Sales Tax Handbook
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.
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