Ohio · the numbers
Ohio figures at a glance, 2026
The Ohio numbers for the 2026 return in one place: the rate and the zero bracket, the exemption amounts, the $500,000 cliff, the business income deduction, the credits and their income limits, the 529 and medical deductions, the dates, the sales and property tax figures, and a short list of what changed from 2025. For anyone who files here, and for anyone checking a preparer’s work.
By Charles Trautman, EA, editor
Need to Know Tax · written from Ohio Department of Taxation sources, November 3, 2026; updated November 12, 2026 after the election · not yet reviewed by an Ohio practitioner
Ohio has one rate for 2026, 2.75%, applied to nonbusiness income over $26,050 after a base amount of $332, and a flat 3% on business income over the $250,000 deduction. For 2026, almost nothing else moved: House Bill 96 froze the brackets and the personal exemptions at their 2025 levels, so the $26,050 line and the $2,400, $2,150 and $1,900 exemptions carry over. What changed is the top rate, which was 3.125% above $100,000 in 2025; the exemption cliff, which fell from $750,000 to $500,000; and the campaign contribution credit, which is gone. The Department of Taxation had not published its 2026 instructions at this writing, so the exemption amounts are the 2025 figures the statute carries forward, marked to verify.
The core figures
| Item | 2025 | 2026 | Note |
|---|---|---|---|
| Starting point | Federal AGI | Federal AGI | Form 1040 line 11; nothing below it reaches Ohio |
| Zero bracket, Ohio taxable nonbusiness income | $26,050 | $26,050 | Same line for every filing status; frozen by HB 96, indexed again for 2027 |
| Tax above the zero bracket | $342.00 + 2.75% to $100,000; $2,394.32 + 3.125% above | $332.00 + 2.75%, no upper bracket | R.C. 5747.02(A)(3)(c) |
| Business income deduction / rate on the rest | $250,000 / 3% | $250,000 / 3% | $125,000 if married filing separately; Schedule of Business Income (IT BUS) |
| Standard deduction | None | None | No itemizing either |
| Personal exemption, MAGI $40,000 or less | $2,400 | $2,400 | Per taxpayer, spouse and dependent; 2026 instructions to come |
| Personal exemption, MAGI $40,001 to $80,000 | $2,150 | $2,150 | |
| Personal exemption, MAGI over $80,000 | $1,900 | $1,900 | The 2026 estimated-payment worksheet used $1,900 for everyone |
| MAGI at which exemptions and the joint filing credit are lost | $750,000 | $500,000 | A cliff, not a phase-out |
| Exemption for a dependent who can be claimed by someone else | $0 | $0 | |
| Age or blindness add-on | None | None | The age break is the $50 senior credit |
| Social Security | Deducted in full | Deducted in full | Schedule of Adjustments; pensions and IRAs are taxed |
| Capital gains rate | Ordinary | Ordinary | No preferential rate; two new deductions for Ohio business gains begin 2026 |
“MAGI” on this page is Ohio modified adjusted gross income, which is Ohio AGI plus the business income deduction added back. The exemption tiers, the joint filing credit tiers and the $100,000 limit on the senior and retirement credits all key off MAGI less exemptions.
The tax at a glance
The Department replaced its tax tables with an online calculator for 2025. The 2026 formula is short enough to print. Ohio taxable nonbusiness income is Ohio AGI less exemptions, less any business income.
| Ohio taxable nonbusiness income | Tax | Effective rate |
|---|---|---|
| $20,000 | $0 | 0% |
| $30,000 | $441 | 1.5% |
| $50,000 | $991 | 2.0% |
| $75,000 | $1,678 | 2.2% |
| $100,000 | $2,366 | 2.4% |
| $200,000 | $5,116 | 2.6% |
| $500,000 | $13,366 | 2.7% |
Before credits. The $332 base is a little less than 2.75% of $26,050, so the formula does not quite go through zero at the bracket line; a filer at $26,051 owes $332, not a few cents. That is how the statute reads and how it read for 2025.
The exemption by household
| Household | MAGI | Exemptions | Tax saved at 2.75% |
|---|---|---|---|
| Single | $35,000 | $2,400 | $66 |
| Single | $60,000 | $2,150 | $59 |
| Married, two children | $75,000 | $8,600 | $237 |
| Married, two children | $150,000 | $7,600 | $209 |
| Married, both 65 or older | $90,000 | $3,800 | $105, plus the $50 senior credit |
| Any household | $500,000 or more | $0 | $0 |
Filers with MAGI less exemptions under $30,000 also get a $20 credit per exemption on the Schedule of Credits.
The credits
| Credit | Figure | Refundable? | Income limit (MAGI less exemptions) |
|---|---|---|---|
| Earned income credit | 30% of the federal EITC | No | Federal EITC limits |
| Child tax credit | None at the state level | ||
| Child and dependent care credit | 100% of the federal credit under $20,000 MAGI; 25% from $20,000 to $39,999 | No | $40,000 |
| Exemption credit | $20 per exemption | No | Under $30,000 |
| Joint filing credit | 20% of tax up to $25,000; 15% to $50,000; 10% to $75,000; 5% above; cap $650 | No | Each spouse needs $500 of qualifying income; none at MAGI of $500,000 or more |
| Senior citizen credit | $50 per return, age 65 | No | Under $100,000 |
| Retirement income credit | $25 to $200 per return by a table | No | Under $100,000 |
| Lump sum retirement / lump sum distribution credits | One-time alternatives to the two credits above | No | Under $100,000 |
| Homeschool expense credit | Up to $250 per homeschooled student | No | None |
| Nonchartered nonpublic school tuition credit | Up to $1,000 (federal AGI under $50,000) or $1,500 | No | One per return |
| Scholarship donation credit | Up to $750 per donor, $1,500 joint; gift may be made up to April 15 | No | None |
| Displaced worker training credit | Lesser of $500 or 50% of training cost | No | None |
| Resident credit, tax paid to other states (IT RC) | Lesser of the other state’s tax or Ohio tax on that income | No | None |
| Campaign contribution credit | Repealed for 2026 (was $50 / $100) | ||
| Pass-through entity tax credit (IT 4738 / IT 4708) | Owner’s share of tax the entity paid | Yes | None |
The Ohio EITC offsets Ohio tax only. A family whose Ohio taxable income is inside the $26,050 zero bracket owes no tax and so gets nothing from a 30% credit. There is no renter credit and no property tax credit on the return; property tax relief runs through the county auditor.
Deductions on the Schedule of Adjustments
| Item | 2026 figure | Note |
|---|---|---|
| Social Security and tier I railroad retirement | 100% | The taxable amount from 1040 line 6b |
| Uniformed services retired pay and survivor benefits | 100% | Includes reserves and National Guard |
| Ohio 529 (CollegeAdvantage) and STABLE contributions | $4,000 per beneficiary | Married couples share the $4,000; excess carries forward without limit |
| Unreimbursed medical expenses | Over 7.5% of federal AGI | Plus unsubsidized health and long-term care premiums in full; no itemizing needed |
| Ohio medical savings account deposits | $6,003 per person (2025); 2026 to come | Indexed |
| Homeownership savings account contributions | $5,000 single / $10,000 joint a year | Lifetime $25,000 / $50,000 |
| Ohio educator expense deduction | $300 per K-12 educator | On top of the federal deduction |
| Wages of residents of IN, KY, MI, PA and WV | 100% | Reciprocity |
| Business income deduction | $250,000 | Rest taxed at 3% on the IT BUS |
| Addition: bonus depreciation and excess section 179 | 5/6 added back | Deducted over the following five years |
| Addition: non-Ohio municipal bond interest | 100% | Ohio’s own bonds stay exempt |
Worked example: what the figures do for one Ohio family
Married, both working, two children, wages of $92,000 and $1,500 of interest; $3,000 put into a CollegeAdvantage 529; $4,000 of child care costs with a federal dependent care credit of $800. Ohio withholding of $2,300.
| Federal AGI (IT 1040 line 1) | $93,500 |
| Schedule of Adjustments: 529 contribution | −$3,000 |
| Ohio adjusted gross income | $90,500 |
| Exemptions: 4 × $1,900 (MAGI over $80,000) | −$7,600 |
| Ohio taxable nonbusiness income | $82,900 |
| Tax: $332 + 2.75% × ($82,900 − $26,050) | $1,895 |
| Joint filing credit: 5% (MAGI less exemptions over $75,000) | −$95 |
| Dependent care credit (MAGI over $40,000) | $0 |
| Ohio tax | $1,800 |
| Withholding | −$2,300 |
| Refund | $500 |
Had the family earned $79,000 instead of $92,000, each exemption would be $2,150 and the joint filing credit 10%: the tiers move together. The federal standard deduction, the child tax credit and the dependent care credit above $40,000 play no part. The school district tax, if the family lives in one of the roughly 210 taxing districts, is a separate return on the same income.
Dates
| Date | What |
|---|---|
| January 15, 2027 | Fourth 2026 estimated payment (OUPC) |
| April 15, 2027 | IT 1040 and SD 100 due with payment; first 2027 estimated payment |
| June 15 and September 15, 2027 | Second and third 2027 estimated payments |
| October 15, 2027 | Extended due date, only with a federal extension; no Ohio form; tax was still due April 15 |
| December 31, 2026 | Homestead exemption application (DTE 105A) for tax year 2026, with the county auditor |
Estimated payments are required when Ohio tax after credits and withholding will exceed $500. The safe harbor is 90% of this year’s tax or 100% of last year’s, in four equal installments; the interest penalty is figured on Form IT/SD 2210. Interest on late payments was 7% for 2026; the 2027 rate is to come. The full calendar is in Ohio calendar and forms.
Beyond the income tax
| Item | 2026 |
|---|---|
| Municipal income tax | About 600 cities and villages, generally 0.5% to 3% of wages and net profits; Columbus and Cleveland 2.5%, Cincinnati 1.8%; filed with the city, RITA or CCA, not the state |
| School district income tax | About 210 districts, 0.25% to 2%, on Form SD 100 with the state return; traditional or earned-income base; $50 senior credit at 65 |
| State sales tax | 5.75%, plus county and transit levies of 0.75% to 2.5%; 6.50% to 8.00% combined, 8.25% in the COTA area of Licking County |
| Homestead exemption, 65 or older or disabled | $29,700 of market value exempt, Ohio MAGI of $41,000 or less (tax year 2026, bills paid in 2027); 2025 was $29,000 and $40,000 |
| Enhanced homestead, 100% disabled veterans and surviving spouses of fallen first responders | $59,400, no income test |
| Owner-occupancy credit | 5.70% of qualifying levies for 2026, up from 2.5%; the 10% non-business credit falls to 7.5% |
| Estate, inheritance and gift tax | None since 2013 |
| Reciprocal states for wages | Indiana, Kentucky, Michigan, Pennsylvania, West Virginia |
| Nonresident presumption | No more than 212 contact periods in Ohio plus an out-of-state abode; checkbox on the IT 1040 |
What changed from 2025
- Top rate 2.75%. The 3.125% bracket above $100,000 is gone. The base at $26,050 is $332 instead of $342.
- Exemption cliff at $500,000 MAGI, down from $750,000, for personal exemptions and the joint filing credit.
- No indexing. The $26,050 line and the exemption amounts are the 2025 figures. Indexing resumes for 2027.
- Campaign contribution credit repealed.
- Two new capital gains deductions for Ohio venture capital investments and the sale of an Ohio-headquartered business (R.C. 5747.79 and 5747.81) (verify mechanics).
- Conformity date March 5, 2026 (SB 9). The federal tips, overtime, senior and car-loan deductions still do not reach Ohio; the bonus depreciation add-back stays.
- Gambling withholding 2.75%, down from 4%.
- Withholding tables for the new rate took effect August 1, 2026, so 2026 W-2s carry seven months at the old rate.
- School district tax on estates ended.
- Homestead exemption $29,700 / $41,000, up from $29,000 / $40,000; owner-occupancy credit 5.70%.
- Unchanged: the $250,000 business income deduction and 3% rate, the 30% nonrefundable EITC, the $50 senior credit, the $200 retirement income credit, the $4,000 529 deduction, the $500 estimated payment threshold, the five reciprocal states.
Behind the scenes: why the base is $332 and not 2.75% of $26,050
Ohio’s rate schedule is written as a table of base amounts plus a percentage of the excess, the way the federal schedules are. When a legislature cuts a rate on one bracket and leaves the others alone, the base amounts for the higher brackets are recomputed so the table stays continuous. When a legislature freezes indexing and collapses the top bracket at the same time, as HB 96 did, the base amount for the surviving bracket is whatever number the bill writers put in. For 2026 that number is $332.00, ten dollars below the 2025 base and about $384 less than 2.75% of $26,050. The practical result is a tiny tax cut for everyone above the zero bracket and a small step at the bracket line itself. When indexing resumes in August 2027, the tax commissioner is told by statute to raise the $26,050 figure to the nearest $50 and to recompute the base to match; whether the step survives depends on how that recomputation is done.
What to bring
- Last year’s IT 1040 and SD 100, for a line-by-line comparison and the 100% safe harbor
- Every W-2, 1099-R, SSA-1099 and 1099-INT/DIV, with the Ohio and school district withholding boxes
- CollegeAdvantage or STABLE contribution statements, by beneficiary
- Medical bills and unsubsidized health, dental and long-term care premiums paid in 2026
- Child care costs and the provider’s details, if MAGI is under $40,000
- For a business, farm or rental: the federal depreciation schedule, for the bonus add-back and the IT BUS
- The school district number for your home address, from The Finder on tax.ohio.gov
Questions people ask
What is the Ohio income tax rate for 2026?
Zero on the first $26,050 of Ohio taxable nonbusiness income, then $332 plus 2.75% of the rest. Business income is taxed at 3% after a $250,000 deduction. The same table applies to every filing status.
What is the Ohio personal exemption for 2026?
The 2025 amounts carry forward: $2,400 per person if MAGI is $40,000 or less, $2,150 up to $80,000, $1,900 above that, and zero at $500,000 or more. The Department’s 2026 instructions will confirm the figures; HB 96 suspended the inflation adjustment for 2026.
Is the Ohio earned income credit refundable?
No. It is 30% of the federal credit but it only reduces Ohio tax. A family whose Ohio taxable income is under $26,050 owes nothing and gets nothing from it.
How much is the homestead exemption for 2026?
$29,700 of market value for owners 65 or older or permanently disabled with Ohio MAGI of $41,000 or less, and $59,400 with no income test for 100% service-connected disabled veterans and surviving spouses of first responders killed in the line of duty. Apply to the county auditor by December 31, 2026.
Does Ohio have an estate tax?
No. It was repealed for deaths on or after January 1, 2013, and Ohio has no inheritance or gift tax.
$26,050, 2.75%, $250,000, $500,000
Know where the zero bracket ends, what the business income deduction covers, and whether MAGI is anywhere near the cliff, and most of the Ohio arithmetic is done.
Written by Charles Trautman, EA, editor · Need to Know Tax, Lone Tree, Colorado
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Forms and official pages named in this article
- Ohio Department of Taxation, Tax Forms (IT 1040 with Schedules of Adjustments, Business Income, Credits and Dependents; SD 100; OUPC)
- 2025 IT 1040 / SD 100 instructions (exemption table, credits, mailing addresses)
- 2026 IT 1040 ES estimated payment instructions
- Homestead exemption FAQ and Form DTE 105A
Sources and where to check
- Ohio Revised Code 5747.02, tax rates, as amended by HB 96
- Ohio Department of Taxation, Annual Tax Rates
- Ohio Legislative Service Commission, HB 96 Tax Bill Analysis as Enacted
- Ohio Department of Taxation, What’s New
- Ohio Department of Taxation, FAQ: Retirement Income
- Ohio Department of Taxation, FAQ: School District Income Tax
- Ohio Department of Taxation, FAQ: Homestead Means Testing
- Ohio Department of Taxation, Due Dates