Ohio Tax Calculator 2025
Calculate your Ohio state income tax with our comprehensive 2025 calculator featuring the Buckeye State's progressive tax rates from 0% to 3.99%, standard deductions, and advanced tax planning tools.
Calculate Your Ohio Tax
Enter your income information to calculate Ohio's progressive state income tax with rates ranging from 0% to 3.99% plus applicable deductions and exemptions.
Ohio Tax Structure 2025
Ohio operates a progressive income tax system with rates ranging from 0% to 3.99%, making it one of the more tax-friendly states in the Midwest. The Buckeye State's moderate tax burden and business-friendly policies attract both individuals and corporations.
OH Progressive Tax Brackets (2025)
- 0% on income up to $25,000
- 2.85% on income $25,001 - $44,250
- 3.326% on income $44,251 - $88,450
- 3.802% on income $88,451 - $110,650
- 3.99% on income over $110,650
Standard Deductions (2025)
- Single: $2,700
- Married Filing Jointly: $5,400
- Married Filing Separately: $2,700
- Head of Household: $4,000
Ohio Tax Benefits and Credits
Ohio provides various tax benefits and credits that can significantly reduce your overall tax burden, particularly for working families, students, and those making energy-efficient improvements.
- Personal Exemption: $2,700 per taxpayer and dependent
- Retirement Income Credit: Credit for qualifying retirement income for taxpayers 65 and older
- Earned Income Credit: Ohio version of federal EIC for low-to-moderate income working families
- Business Income Deduction: First $250,000 of business income eligible for deduction
- College Advantage 529 Deduction: Deduction for contributions to Ohio 529 education savings plans
- Joint Filing Credit: Credit for married couples filing jointly
- Lump Sum Distribution Credit: Credit for certain retirement distributions
Ohio Residency and Tax Planning
Understanding Ohio residency requirements and tax planning strategies can help optimize your tax situation, especially with the state's business-friendly policies and moderate tax structure.
Establishing OH Residency
Ohio considers you a resident if your domicile is in Ohio or you maintain a place of abode in Ohio and spend more than 183 days in the state during the tax year.
Part-Year Residents
Part-year residents pay Ohio tax only on income earned while an Ohio resident, with specific allocation rules for business and investment income sources.
Non-Resident Taxation
Non-residents pay Ohio tax only on income sourced to Ohio, including wages earned in the state, Ohio rental income, and business income from Ohio operations.
Business Tax Advantages
Ohio offers significant business income deductions and credits, making it attractive for entrepreneurs and small business owners seeking to minimize state tax obligations.
Frequently Asked Questions
What are Ohio's income tax rates for 2025?
Ohio has progressive income tax rates ranging from 0% to 3.99% for 2025. The first $25,000 of income is tax-free, with rates gradually increasing to the top rate of 3.99% on income over $110,650.
Does Ohio tax retirement income?
Ohio provides a retirement income credit for taxpayers 65 and older, which can reduce or eliminate tax on qualifying retirement income. Social Security benefits are not taxed by Ohio.
How does Ohio's business income deduction work?
Ohio allows a deduction for the first $250,000 of business income, making it very attractive for small business owners and entrepreneurs. This includes income from sole proprietorships, partnerships, and S-corporations.
Is Ohio tax-friendly compared to neighboring states?
Yes, Ohio is generally more tax-friendly than many neighboring states. Its top rate of 3.99% is lower than Pennsylvania's local taxes combined, and it offers significant business deductions and no tax on the first $25,000 of income.
How are remote workers taxed in Ohio?
Ohio residents working remotely pay Ohio tax on all income regardless of where they work. Non-residents working remotely for Ohio companies generally don't owe Ohio tax unless they work physically in the state.
What deductions are available for Ohio taxpayers?
Ohio offers standard deductions, personal exemptions, business income deductions, 529 plan contribution deductions, and various credits including the earned income credit and retirement income credit.