State-by-State Guide to Taxes on Retirees - Ohio
Tool | November 2018

State-by-State Guide to Taxes on Retirees


Add to State Compare List | View List
(0) selected | Compare up to 5

The Bottom Line
Map of Ohio

Mixed Tax Picture

The Buckeye State exempts Social Security benefits from state income taxes and also allows retirees to claim a tax credit of up to $200 on other types of retirement income. Ohio’s income tax rates range from a low of 1.98% to a high of 4.997% (on income over $213,350). While localities and some school districts may levy their own income taxes, pension income is generally exempt. Residents 65 and older may qualify for a homestead exemption.

State Sales Tax

5.75% state levy. Localities can add as much as 2.25%, and the average combined rate is 7.15%, according to the Tax Foundation.

Income Tax Range

Low: 1.98% (on income over $10,650 of taxable income)

High: 4.997% (on taxable income over $213,350). Municipalities can levy income taxes, too; the average local rate is 2.5%, per the Tax Foundation.

Social Security

Benefits are not taxed.

Exemptions for Other Retirement Income

Ohio has four tax credits for retirees. The retirement-income credit is worth $25 to $200, depending on the amount of qualifying retirement income. In addition, seniors 65 and older can qualify for the senior citizen credit, worth $50 per tax return. Retirees can also get a lump-sum distribution credit and a lump-sum retirement-income credit. The credits for retirement income and lump-sum distributions from a pension, retirement or profit-sharing plan are limited to taxpayers whose individual or joint adjusted gross income is less than $100,000. Taxpayers taking the lump-sum retirement-income credit cannot take the retirement-income credit on current or future returns. Taxpayers taking the lump-sum distribution credit cannot take the $50 senior citizen credit. Military pensions are eligible for a deduction to the extent that income is not otherwise deducted or excluded.

Most Ohio municipalities levy an income tax on residents and those who work within the municipality. Rates range from 0.4% to 3%. But pension income and disability benefits, interest and dividends are exempt. About 30% of school districts also levy an income tax of 0.25% to 2% on residents. The taxing district can opt to tax either "traditional" (Ohio taxable) income or earned income; earned income generally excludes retirement income, interest, dividends and capital gains.

Railroad Retirement benefits are exempt.


Qualifies for tax credits.

401(k)s and Other Defined-Contribution Employer Retirement Plans

Qualifies for tax credits.

Private Pensions

Qualifies for tax credits.

Public Pensions

Qualifies for tax credits. Military pensions are eligible for a deduction to the extent that income is not otherwise deducted or excluded.

Property Taxes

The median property tax on Ohio’s median home value of $131,900 is $2,064.

Tax breaks for seniors: A homestead exemption is available for qualified homeowners who are at least 65 years old, permanently and totally disabled, or at least 59 years old and the surviving spouse of a deceased taxpayer who had previously received the exemption. Qualified homeowners are permitted to exempt $25,000 of their home’s market value from all local property taxes. Eligibility for new exemptions is limited to qualifying taxpayers (by age) with Ohio adjusted gross income of $32,200 or less for 2018.

Vehicle Taxes

Sales tax is due when vehicle title is transferred.

Inheritance and Estate Taxes


Sponsored Financial Content