Ohio Income Tax Rate 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.
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 Income | Rate |
|---|---|
| $0 - $26,050 | 0.00% |
| Over $26,050 | 2.75% |
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 as of a fixed date set in ORC 5701.11. S.B. 9 of the 136th General Assembly, effective March 5, 2026, moved that date forward, which brings in OBBBA. But the federal tips, overtime, and senior deductions are taken after AGI on Schedule 1-A, and Ohio's return starts from federal AGI (IT 1040 line 1). The deductions therefore do not reduce Ohio income: no Ohio benefit.
- Tips Deduction: Conforms, no Ohio benefit. Tips remain taxable in Ohio.
- Overtime Deduction: Conforms, no Ohio benefit. Overtime remains taxable in Ohio.
- Senior Bonus Deduction: Conforms, no Ohio benefit. The deduction does not reduce Ohio income.
Source: ORC 5701.11 (as amended by S.B. 9).