Ohio Tax Calculator: Estimate Your Taxes
Warning: Calculations are estimates based on December 2021 tax rates and Tax Foundation data. These rates are subject to change. Check the IRS website for the latest income tax information and your state’s tax website for state-specific information. Our calculator does not take into account 401k and IRA deductions due to tax law limitations. Please note that the amount of your IRA deductions may vary. You should speak with a tax professional to determine your tax situation.
What You Need to Know About Ohio State Taxes
The State of Ohio requires you to pay taxes whether you are a resident or a non-resident who receives income from an Ohio source. The 2021 state income tax rates range from 2.765% to 3.99%, and the sales tax rate is 5.75%.
The State of Ohio offers tax deductions and credits to reduce your tax liability, including a personal exemption, credits for 529 contributions and more.
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Ohio income tax brackets and rates
Some cities in Ohio also impose their own income taxes, which are in addition to any state taxes. Refer to this municipal income tax resources for more information.
Additionally, school districts in Ohio may levy income taxes for financial support. This tax is in addition to any state and city income or property taxes. As of January 2022, 210 school districts impose an income tax. Use this search tool to determine your school district and tax rate.
Income Tax Deductions for Ohio
Personal Exemptions and Dependents
Ohio allows an exemption for yourself, your spouse (if filing jointly), and dependents you claim on your federal tax return. You are claiming an exemption for each eligible person in your household. The exemption is as follows:
Itemized Federal Deductions
You cannot claim itemized federal deductions on your Ohio state tax return. Ohio uses your federally adjusted gross income, which already includes your federal deductions, to calculate state income tax.
529 Plan account deduction
Up to $4,000 in contributions to an Ohio 529 savings plan can be deducted per beneficiary per year. Contributions over $4,000 can be carried forward and deducted on future returns until fully utilized (they will also be subject to the annual limit of $4,000 per beneficiary).
Deduction for STABLE account
Up to $4,000 in contributions to an Ohio STABLE account can be deducted per beneficiary per year. Contributions over $4,000 can be carried forward and deducted on future returns (they will also be subject to the annual limit of $4,000 per beneficiary).
Ohio State Income Tax Credits
The following credits are non-refundable (meaning if they exceed the amount of tax you owe, they cannot trigger a tax refund).
Retirement Income Credit
If you received income from a pension, profit sharing, or retirement plan (such as an IRA or 401(k)), you are eligible for a credit of up to $200. Your modified adjusted gross income, less exemptions, must be less than $100,000.
Lump-sum retirement credit
If you claim this credit, you cannot claim the retirement income credit on this year’s return or on any future returns. If you received a total lump sum retirement distribution and your adjusted adjusted gross income, less the exemption, is less than $100,000, you can claim this credit. The lump-sum retirement credit can only be requested once per lifetime.
If you are 65 or older at the end of the tax year and your adjusted adjusted gross income, less exemptions, is less than $100,000, you are entitled to a $50 credit per return. You can never claim this credit if you have already taken the fixed distribution credit below.
Lump sum distribution credit
If you are age 65 or older and have a modified adjusted gross income, less exemptions, of less than $100,000 and you received a total lump sum distribution from a pension, retirement or qualifying profits, you can claim this credit. You can only claim this credit once per lifetime. If you are claiming the lump sum distribution credit, you cannot claim the senior citizen credit above on this return or any future returns.
Credit for child care and dependent care
You can claim this credit on your Ohio state tax return if your adjusted adjusted gross income is less than $40,000 and you claimed this credit on your federal return.
Displaced Worker Training Credit
Displaced workers (those who have lost their job due to a shift being cut, or a workplace closing or moving) may receive $500 or 50% of the amount paid for job training at the during the 12 months following the loss or departure of a job. Other eligible expenses include tuition and course fees and books.
Campaign contribution credit
If you contributed to a campaign committee of eligible Ohio offices (such as Governor, Secretary of State, Ohio Senate or House of Representatives, etc.), you can claim this credit. The credit is equal to the amount assessed during the tax year up to $50 per return, or $100 if you file jointly. Contributions to federal candidates (such as the President or a US Senator) do not qualify for this credit.
If your adjusted adjusted gross income, less exemptions, is less than $30,000, you can claim this credit. The credit is equal to $20 per exemption claimed on your return. For example, if you qualify for an exemption for you and your spouse, you may qualify for an exemption credit of $40 ($20 x 2).
Joint deposit credit
You and your spouse must have at least $500 of qualifying income each to qualify for this credit. The credit is a percentage of your tax payable with a maximum credit amount of $650.
Earned income tax credit
If you claim the Earned Income Tax Credit (EITC) on your federal return, you will receive 30% of this amount on your Ohio state tax return. So if your federal EITC is $2,000, you are entitled to $600 on your Ohio return.
Credit for home school expenses
If your dependent is home schooled and you purchased books, subscriptions, school supplies, or computer software and applications, you can claim up to $250 of those expenses with this credit. Education costs do not include computers, and students who attended school remotely due to Covid-19 are not eligible for this credit.
Scholarship Donation Credit
Up to $750 in donations to an eligible scholarship-granting organization can be claimed as a credit on your Ohio state tax return.
Credit for tuition at a non-public, unaccredited school
If you paid tuition for your dependents to attend a non-public, unaccredited school and have a federal adjusted gross income (AGI) of less than $100,000, you can claim this credit. The credit is equal to the lesser of $500 if your federal AGI is less than $50,000, or $1,000 if your federal AGI is between $50,000 and $99,999.
Ohio Adoption Credit
If you adopted a child (under the age of 18) this year who was not your stepson, you are entitled to this credit. The credit is worth $1,500 to $10,000 for adoption-related expenses such as legal fees, medical expenses for birth mother or child, etc. This credit is non-refundable, meaning it cannot trigger a tax refund, but any unused portion of it can be carried forward for up to five consecutive years.
Do I have to pay income taxes in Ohio?
You are required to file an Ohio tax return if you receive income from an Ohio source and you fall into one of the following categories:
- Resident: Your home (primary residence) is in Ohio. You are considered a resident even if you are temporarily absent from your home in Ohio, regardless of the length of those absences.
- Year-round resident: You lived in Ohio for part of the tax year. Part-year residents are eligible for the nonresident credit for any income earned while residing in another state. They are also eligible for the resident credit on any non-Ohio income earned while living in Ohio, as long as they paid taxes on it in another state.
- Non-resident: You are a resident of another state throughout the tax year. If you earned income from Ohio, you will need to file an Ohio state tax return, but you can claim the non-resident credit on all income earned outside of Ohio for avoid being taxed twice. If you live in Indiana, Kentucky, Michigan, Pennsylvania, or West Virginia, you do not need to file an Ohio state tax return if your only income from Ohio is a salary.
Related: Ohio Income Tax Calculator
Sales tax and sales tax rate
Ohio charges a 5.75% sales tax. Counties may levy additional sales taxes.
Property taxes and property tax rates
Low-income seniors (age 65+) and those with permanent and total disabilities are entitled to up to $25,000 of the market value of their home with exemption from all local property taxes.
Capital gains tax
Generally, Ohio taxes capital gains at the income tax rate.
Inheritance and Inheritance Tax
Ohio does not have an estate or inheritance tax.
Editor’s note: This post has been updated to include information about municipal and school district income taxes in Ohio.