Ohio State Taxes: What You’ll Owe in the 2026 Tax Season

Ohio has reduced its individual income tax rates in recent years, bringing the top rate down to 3.125 percent in 2025. However, local municipalities impose their own additional income taxes, which creates complexity and a higher tax burden than for residents in other states, according to the Tax Foundation.

The big picture:

• Income tax: The state has graduated income tax brackets. They range from 2.75 percent plus $342 for residents with taxable income from $26,050 to $100,000, to 3.125 percent plus $2,394 for those with more than $100,000 in taxable income.   
• Property tax: The state has an effective property tax rate of 1.36 percent of a property’s assessed value, but rates vary by county.  
• Sales tax: The state sales tax rate is 5.75 percent, but local counties and regional transit authorities can add their own sales taxes, up to 3 percent, making the maximum state sales tax rate 8.75 percent.  

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How is income taxed?

The state has graduated income tax brackets that are the same for all residents, regardless of their filing status (single versus married and filing jointly). Residents with taxable incomes up to $26,050 are not taxed. For those with taxable incomes of $26,051 to $100,000, the rate is 2.75 percent, plus $342. And for those with taxable incomes above $100,000, the rate is 3.125 percent, plus $2,394.32.

What about investment income?

Investment income is taxed the same as regular income.

Are Social Security benefits taxed?

Ohio does not tax Social Security benefits.

How is property taxed?

The effective property tax rate for the state is 1.36 percent, according to the latest data available from the Tax Foundation. Rates range from 0.64 percent in Noble and Vinton counties to 1.89 percent in Cuyahoga County. The median property taxes paid range from $1,176 in Monroe County to $7,132 in Delaware County.

What about sales and other taxes? 

• Sales tax: The state’s sales tax rate is 5.75 percent, but local counties and regional transit authorities can add their own sales taxes, up to 3 percent, making the maximum sales tax 8.75 percent. The average combined state and local sales tax rate is 7.29 percent, according to the Tax Foundation. Exemptions include groceries, items bought with food stamps, newspapers, prescription medication and medical equipment, among other items. More exemptions can be found here.  
• Gas and diesel: Gasoline is taxed at 38.5 cents per gallon. Diesel is taxed at 47 cents per gallon.   
• Vehicle tax: Vehicle purchases include the state’s 5.75 percent sales tax, plus local sales taxes.
• Alcohol: Beer, wine and liquor are subject to state and local sales taxes. Manufacturers and wholesalers pay additional taxes that may be passed on to the consumer.
• Lottery: Any lottery winnings for an Ohio resident are considered taxable income; the rate is based on the winner’s income tax bracket. Any winnings by a nonresident from the Ohio Lottery Commission are taxable in Ohio.

Will my heirs or estate have to pay inheritance and estate taxes?