Ohio taxes and cost of living (2026)
Ohio has a flat 0.00% income tax. A $100,000 salary is worth about $72,602 a year in national buying power after every tax and Ohio's prices, #18 of 51 (the state average is $70,397). Retiring on $50,000 a year takes about $1.20M, #17 lowest.
- State income tax
- 0.00%
- Sales tax (avg. combined)
- 7.29%
- Property tax (effective)
- 1.23%
- Cost of living
- 92.8
- US = 100
- Social Security taxed?
- No
- Median home
- $240K
Take-home pay in Ohio
Single filer, 10% of salary to a pre-tax 401(k), standard deduction, renting. All taxes include estimated sales tax.
| Salary | Federal | FICA | State + local | All-in tax rate | Take-home | In US dollars |
|---|---|---|---|---|---|---|
| $50,000 | $3,220 | $3,825 | $1,787 | 18.7% | $36,168 | $38,985 |
| $75,000 | $6,020 | $5,738 | $2,906 | 20.6% | $52,837 | $56,952 |
| $100,000 | $10,970 | $7,650 | $4,025 | 23.7% | $67,355 | $72,602 |
| $150,000 | $21,134 | $11,475 | $6,262 | 27.0% | $96,129 | $103,616 |
| $250,000 | $43,304 | $15,514 | $10,737 | 28.9% | $155,445 | $167,552 |
What it takes to retire in Ohio
Married couple, age 60, withdrawals 60% from 401(k)/IRA, 20% Roth, 20% brokerage, no Social Security yet, renting. Spending at US-average prices.
| Spending | At OH prices | Income taxes | All taxes | FI number |
|---|---|---|---|---|
| $40,000 | $37,110 | $0 | $866 | $927.7K |
| $60,000 | $55,664 | $733 | $2,032 | $1.41M |
| $80,000 | $74,219 | $2,330 | $4,062 | $1.91M |
| $120,000 | $111,329 | $5,813 | $8,410 | $2.93M |
Ohio tax rules at a glance
- Income tax: Ohio has a flat 0.00% income tax. HB 96 (2025): for 2026 nonbusiness income over $26,050 is taxed at a flat 2.75%, BUT the statutory table is '$332 plus 2.75% of the amount over $26,050' (i.e. add a fixed $332 once taxable income exceeds $26,050; $0 tax at or below). Same thresholds for all filing statuses (not doubled for MFJ). 2025 top rate was 3.125%. No standard deduction. Personal exemption per person: $2,400 if MAGI <= $40,000, $2,150 if $40,001-$80,000, $1,900 if over $80,000; none (and no joint filer credit) if MAGI > $500,000. Indexing suspended for 2025-2026. Business income: first $250k ($125k MFS) deducted, remainder taxed at flat 3%.
- Local income tax: Most of the ~600 cities/villages levy municipal income tax on wages (taxed where you work, with residence-city credit varying): commonly 1.5%-2.5% (Columbus, Cleveland, Toledo, Akron, Dayton 2.5%; Cincinnati 1.8%). Unincorporated townships generally have none. ~200 school districts add a school district income tax (typically 0.5%-2%). 2% is a rough statewide typical rate (estimate).
- Social Security: Not taxed. Fully exempt.
- Retirement income: No exclusion; pensions/IRAs taxable. Small credits only: retirement income credit up to $200 per return and senior citizen credit $50 (65+), each limited to MAGI under $100,000. Military retirement exempt.
- Capital gains: Taxed as ordinary nonbusiness income (2.75%). Gains from sale of an ownership interest in a business may qualify as business income (deduction / 3% rate).
- Sales tax: 5.75% state rate, 7.29% average with local taxes; groceries exempt.
Compare Ohio with
Frequently asked questions
Does Ohio have a state income tax?
Ohio has a flat 0.00% income tax. HB 96 (2025): for 2026 nonbusiness income over $26,050 is taxed at a flat 2.75%, BUT the statutory table is '$332 plus 2.75% of the amount over $26,050' (i.e. add a fixed $332 once taxable income exceeds $26,050; $0 tax at or below). Same thresholds for all filing statuses (not doubled for MFJ). 2025 top rate was 3.125%. No standard deduction. Personal exemption per person: $2,400 if MAGI <= $40,000, $2,150 if $40,001-$80,000, $1,900 if over $80,000; none (and no joint filer credit) if MAGI > $500,000. Indexing suspended for 2025-2026. Business income: first $250k ($125k MFS) deducted, remainder taxed at flat 3%.
How much is $100,000 after taxes in Ohio?
A single filer earning $100,000 who puts $10,000 in a 401(k) takes home about $67,355 after federal, state and local income taxes and payroll taxes, an all-in effective rate of 23.7% including estimated sales tax.
Does Ohio tax Social Security?
No. Ohio does not tax Social Security benefits. Fully exempt.
How much do you need to retire in Ohio?
To spend $50,000 a year (at US-average prices) with withdrawals mostly from a 401(k)/IRA, you'd need about $1.20M in Ohio using the 4% rule, after its cost of living and taxes.
Is Ohio expensive to live in?
Ohio's cost of living index is 92.8, where the US average is 100 (BEA Regional Price Parities, 2024). The median home is worth about $239,800 and median rent is $1,090 a month.
How this is calculated
- Income taxes use 2026 federal and state brackets, standard deductions and personal exemptions or credits. No itemized deductions or other credits. Local income taxes use a typical statewide rate (for example, Maryland's county taxes or New York City's); many places have none.
- Payroll taxes include Social Security (6.2% up to the wage base), Medicare, and employee-paid state programs such as California SDI or Washington's paid leave premium. A married household salary is treated as two equal earners for payroll-tax caps.
- Cost of living uses the Bureau of Economic Analysis's Regional Price Parities (2024), where the US average is 100. Spending you enter at national prices is scaled by each state's index.
- Sales tax is estimated as the average combined state and local rate on about a third of spending (more where groceries are taxed). It is shown for context but not added to costs, because the price parities already include it. Property tax applies the state's effective rate to its median home value (Census ACS 2024) if you own.
- Retirement solves for the withdrawal that covers your spending plus the taxes it triggers, using each state's treatment of Social Security, retirement-account withdrawals and capital gains, then multiplies by 25 (a 4% withdrawal rate).
- Years to FI starts from zero, adds what you save each year in that state, and grows it at a 5% real return until it reaches that state's FI number.
Estimates for comparison, not tax advice. Your actual taxes depend on deductions, credits, where in the state you live and more. Sources: BEA Regional Price Parities, Census ACS, state sales tax rates, IRS, state revenue departments (per state).