Tax Year 2026Updated July 20, 2026

Ohio Tax Calculator & Rates 2026

Ohio enacted a major tax simplification for TY2026 (HB 96): income up to $26,050 is tax-free, and all income above that threshold is taxed at a single 2.75% rate. This replaces the prior 5-bracket graduated schedule. The state sales tax rate is 5.75%. Use the calculators below to estimate your Ohio tax liability for 2026.

Income Tax
Flat 2.75% above $26,050
Sales Tax
State rate 5.75%
Capital Gains
Flat 2.75%
Supplemental Rate
2.75%

Ohio Income Tax 2026

HB 96 collapsed Ohio's prior 5-bracket graduated schedule into an effectively flat structure. The first $26,050 of taxable income is exempt (0% bracket), and all income above that threshold is taxed at 2.75%. The $26,050 threshold is frozen and not indexed for inflation. Ohio uses the same brackets for all filing statuses.

Taxable IncomeRate
$0 - $26,0500.00%
Over $26,0502.75%

Source: ORC 5747.02 (HB 96)

Ohio also provides an AGI-tiered personal exemption of $2,400 (lowest tier) per filer, reducing to $2,150 and $1,900 at higher AGI levels. Exemptions are eliminated entirely for taxpayers with MAGI above $500,000.

Ohio Municipal Income Taxes

Unlike most states, Ohio has widespread municipal income taxes. Most cities and villages levy their own local income tax, typically ranging from 1% to 3%. Major city rates include Columbus 2.5%, Cleveland 2.5%, Cincinnati 1.8%, and Akron 2.5%. These are administered by RITA (Regional Income Tax Agency) or CCA (Central Collection Agency) and apply in addition to the state tax. Municipal taxes are not modeled in our paycheck calculator.

Ohio Sales Tax

Ohio's state sales tax rate is 5.75%. Counties may levy additional permissive taxes. Food for human consumption is exempt from Ohio sales and use tax.

OBBBA Conformity - Does Ohio Follow Federal Deductions?

Ohio conforms to the Internal Revenue Code on a rolling basis (ORC 5747.01). This means OBBBA deductions for tips, overtime, and senior income automatically flow through to Ohio via federal AGI.

  • Tips Deduction: Conforms. Ohio conforms to the IRC on a rolling basis per ORC 5747.01. The ODT Conformity Updates page affirmed TY2025 conformity. Federal OBBBA tips deduction flows through to Ohio via federal AGI. Recheck ODT annual conformity update for TY2026.
  • Overtime Deduction: Conforms. Ohio conforms to the IRC on a rolling basis. Federal OBBBA overtime deduction flows through to Ohio via federal AGI. Recheck ODT annual conformity update for TY2026.
  • Senior Bonus Deduction: Conforms. Ohio conforms to the IRC on a rolling basis. Federal OBBBA senior bonus deduction flows through to Ohio via federal AGI. Recheck ODT annual conformity update for TY2026.

Ohio Tax Calculators

Frequently Asked Questions

What is Ohio's income tax rate for 2026?
Ohio has effectively a flat 2.75% income tax for TY2026 (HB 96). The first $26,050 of income is tax-free (0% bracket), and all income above that threshold is taxed at a single 2.75% rate. The $26,050 threshold is frozen and not indexed for inflation.
What about Ohio municipal income taxes?
Many Ohio municipalities impose local income taxes, typically 1% to 3%. Notable rates include Columbus 2.5%, Cleveland 2.5%, Cincinnati 1.8%, and Akron 2.5%. These are collected by RITA or CCA and are in addition to the state rate. Municipal taxes are not modeled in our paycheck calculator.
Does Ohio conform to the OBBBA tips and overtime deductions?
Yes. Ohio conforms to the Internal Revenue Code on a rolling basis (ORC 5747.01). The federal OBBBA deductions for tips and overtime flow through to Ohio via federal AGI, reducing both your federal and Ohio state taxable income.
What is the sales tax rate in Ohio?
The state sales tax rate is 5.75%. Counties may add additional rates. Food for human consumption is exempt from Ohio sales and use tax.
Does Ohio tax retirement income?
Ohio does not tax Social Security benefits. Pension and retirement income may qualify for a retirement income credit and senior citizen credit, reducing the effective tax burden for retirees.