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Taxes in Ohio
From no estate or inheritance taxes and modest state income tax rates to higher local levies and above-average property taxes, Ohio offers a balanced but location-dependent tax environment for retirees.
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At a glance:
- Ohio has a relatively low state income tax and no inheritance or estate tax, making it moderately retirement-friendly.
- Local taxes can significantly increase the overall tax burden, especially for income and sales taxes in certain areas.
- Property taxes are above average, but the state offers homestead exemptions and targeted relief for seniors and disabled residents.
Ohio state taxes favor most residents, but watch out for additional local taxes that can increase sales, income, and property taxes in certain municipalities. Below, we explain various Ohio state taxes affecting retirement income, such as sales tax, inheritance tax, and property taxes.
For information regarding taxes in other states, see Retirement Taxes by State.
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Ohio Tax Rates
| State Sales Tax | 5.75% |
| Avg State/Local Sales Tax | 7.24% |
| Gas Tax | $0.385 per gallon |
| Diesel Tax | $0.385 per gallon |
| Cigarette Tax | $1.60 per pack |
| Income Tax | 3.50% |
| Effective Tax Rate | 3.56% |
| Property Tax | 1.30% |
| Social Security Tax | None |
| Medical/Dental Deduction | None |
| Federal Income Tax Deduction | None |
| Retirement Tax | Partial |
Ohio Tax Rates Explained
Ohio Sales Tax
5.75%. Food, newspapers, magazine subscriptions, telephone service and prescription drugs are exempt. Counties levy additional local taxes, which may add up to 2.25% to the sales tax.
Ohio Income Tax
3.50% top rate (on income over $100,000). Cities and school districts can also impose local income taxes.
Ohio Property Taxes
The average effective property tax rate in Ohio is 1.30%, but the amount varies by municipality. Some agricultural land may be assessed at a different percentage. County auditors reappraise all real estate every six years. Generally speaking, you’ll pay $2,961 for a $227,782 home—the state’s median home value.
The Ohio Homestead Exemption is available to qualified homeowners who are either at least 65 years old, permanently and totally disabled or at least 59 years of age and the surviving spouse of a deceased taxpayer who previously received the exemption. The Homestead Exemption is limited to the owner’s dwelling and up to 1 acre of land. The value of the exemption may not exceed the value of the homestead. The 2025 income threshold is $40,000, which is adjusted annually. For more details, see Ohio Taxes.
Ohio Retirement Taxes
The Ohio Retirement Income Credit provides a tax credit for retirement and pension income up to $200 annually. Either spouse must be 65 years old, and modified adjusted gross income less exemptions must be under $100,000 based on the distribution amount reported on Form 1099-R. The credit is not applicable for loans against retirement plans or rollovers.
Taxpayers who retired from service in the active or reserve components of the U.S. Army, Navy, Air Force, Marine Corps, Coast Guard or the National Guard can deduct their military retirement income. This rule does not apply if the income is otherwise deducted or excluded when computing federal or Ohio-adjusted gross income.
Taxpayers who served in the military and receive a federal civil service retirement pension can deduct the amount of this pay attributable to their military service. Ohio provides more information on the state’s Military Income Taxes page.
Ohio Inheritance and Estate Taxes
Ohio does not have an estate tax or an inheritance tax.
For further information, visit the Ohio Department of Taxation.