Overview of Ohio Taxes
Ohio has a progressive income tax system with nine tax brackets. Rates range from 0.495% to 4.997%. 566 Ohio cities and villages add a local income tax to the Ohio state income tax.
This calculator reflects the 2018 federal withholding tax changes.
Click here to learn more about how the Trump Tax Plan will affect you.
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- Our Tax Expert
Jennifer Mansfield, CPA Tax
Jennifer Mansfield, CPA, JD/LLM-Tax, is a Certified Public Accountant with more than 30 years of experience providing tax advice. SmartAsset’s tax expert has a degree in Accounting and Business/Management from the University of Wyoming, as well as both a Masters in Tax Laws and a Juris Doctorate from Georgetown University Law Center. Jennifer has mostly worked in public accounting firms, including Ernst & Young and Deloitte. She is passionate about helping provide people and businesses with valuable accounting and tax advice to allow them to prosper financially. Jennifer lives in Arizona and was recently named to the Greater Tucson Leadership Program.
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Ohio Paycheck Calculator
Photo credit: ©iStock.com/benkrut
Ohio Paycheck Quick Facts
How Your Ohio Paycheck Works
When you start a new job or get a raise your first step might be attempting to calculate the size of each of your paychecks. This can be tough to do without a paycheck calculator, though, especially in a state like Ohio that adds state (and sometimes local) income taxes on top of federal tax withholding.
No matter what state you live in, your employer will withhold 6.2% of your earnings for Social Security taxes and 1.45% of your earnings for Medicare taxes. Your employer will match your contributions. Together, Medicare and Social Security taxes are referred to as FICA (Federal Insurance Contributions Act) taxes and will probably appear under that name on your pay stubs. Any earnings you make in excess of $200,000 will be subject to an additional 0.9% Medicare tax.
In addition to FICA taxes, your employer will also withhold federal income taxes from your earnings. This withholding will depend on your income, exemptions and allowances. You claim allowances when you fill out a W-4 form and give it to your employer. Because of President Trump's tax plan, withholding calculations for federal income tax have changed for the 2018 tax year. The IRS released new guidelines in January and taxpayers should have seen changes to their paychecks, to reflect the new tax plan, starting in February 2018. For the time being, you do not need to fill out a new W-4. Your employer will use the withholdings on your current form.
As a rule, the more allowances you claim, the less your employer will withhold and the bigger your paychecks will be. However, if too little is withheld you'll owe more in taxes come April. If you claim too few allowances and have too much withheld you'll get a bigger refund, but you'll miss out on the chance to use and invest that money throughout the year.
Your marital status will indirectly affect your paycheck size because it will affect your allowances and your tax filing status. It can also affect your paycheck if you pay more in health insurance premiums to cover a spouse or children. These premiums will be deducted from each of your paychecks.
If you make pre-tax contributions to a 401(k), a Flexible Savings Account or a pre-tax commuter card, those contributions will come out of your earnings before the tax rate is applied, lowering your taxable income.
Once you've accounted for taxes and pre-tax contributions you make, there are other factors that can affect the state of your paycheck, regardless of your state of residence. A big one is pay frequency. If your employer pays you monthly, your paychecks will be bigger than if your employer paid you biweekly, for example.
Ohio Median Household Income
|Year||Median Household Income|
When you look at your Ohio paycheck you’ll see the federal withholding described above, plus any additional withholding that you may have set up, such as for your 401(k) contributions or health insurance premiums. But you’ll also see withholding for Ohio state income taxes.
As mentioned above, Ohio state income tax rates range from 0.495% to 4.997% across nine brackets. The first bracket covers income between $0 and $5,200, while the highest bracket covers income over $208,500.
In Ohio many cities and villages levy their own municipal income taxes. Over 600 municipalities have their own income taxes, which means that chances are good that your wages will be subject to a local income tax rate.
Local rates range from 1% to 3%. They’re referred to as RITA taxes, after the Regional Income Tax Agency. If you live in one city and work in another you may be eligible for a tax credit that can offset some of what you owe in RITA taxes.
To calculate RITA withholding, Ohio employers will compare the workplace tax rate to the credit rate of the employee’s home municipality in a complicated process. If you are a business owner or self-employed, it’s important to calculate RITA taxes accurately (you might want to seek some professional help with this). Penalties and interest will accrue if you file RITA taxes incorrectly or fail to file.
However, if you employ a domestic worker in your home you do not have to withhold Ohio municipality taxes from his or her paycheck. (But you should still pay federal "nanny taxes," including FICA taxes and the federal unemployment tax).
Income Tax Brackets
|Ohio Taxable Income||Rate|
|$0 - $5,250||0.495%|
|$5,250 - $10,500||0.990%|
|$10,500 - $15,800||1.980%|
|$15,800 - $21,100||2.476%|
|$21,100 - $42,100||2.969%|
|$42,100 - $84,200||3.465%|
|$84,200 - $105,300||3.960%|
|$105,300 - $210,600||4.597%|
Local Income Taxes
|City||Income Tax Rate|
How You Can Affect Your Ohio Paycheck
If you want a bigger Ohio paycheck there are several steps you can take. You can fill out a new W-4 form so that you’re taking more allowances. This will make each paycheck bigger, but if you’re having too little money withheld you’ll owe more at tax time.
Another option to increase the size of your Ohio paycheck is to seek supplemental wages, such as commissions, overtime, bonus pay, etc. The tax withholding rate on supplemental wages in Ohio starts at 3.5%.
If you’re really committed to increasing the size of your Ohio paycheck you can move to an Ohio municipality with a lower tax rate. Before you take a job in Ohio it’s a good idea to research the municipal tax rate in the locations of your prospective office and the neighborhood you’d like to live. That way, you can assess what your tax rate will be and use that information in salary negotiations.
On the other hand, there are some people who want to shrink the size of each paycheck for tax reasons. If you’re getting a big tax bill year after year you might want to fill out a new W-4 form and request additional withholding from each paycheck. You can do this by claiming fewer allowances or by specifying a dollar amount to be withheld from each paycheck in addition to what your employer is already withholding. You can also lower your taxable income by saving more in a 401(k).
Our Ohio mortgage guide can help you get a sense of mortgage rates and details in the Buckeye State, so that you can decide if purchasing a home in Ohio is the right move for you.
Ohio Top Income Tax Rate
|Year||Top Income Tax Rate|
Most Paycheck Friendly Places
SmartAsset's interactive map highlights the most paycheck friendly counties across the country. Zoom between states and the national map to see data points for each region, or look specifically at one of the four factors driving our analysis: Semi-Monthly Paycheck, Purchasing Power, Unemployment Rate, and Income Growth.
Methodology Our study aims to find the most paycheck friendly places in the country. These are places in the country with favorable economic conditions where you get to keep more of the money you make. To find these places we considered four different factors: semi-monthly paycheck, purchasing power, unemployment rate and income growth.
First, we calculated the semi-monthly paycheck for a single individual with two personal allowances. We applied relevant deductions and exemptions before calculating income tax withholding. To better compare withholding across counties we assumed a $50,000 annual income. We then indexed the paycheck amount for each county to reflect the counties with the lowest withholding burden.
We then created a purchasing power index for each county. This reflects the counties with the highest ratio of household income to cost of living. We also created an unemployment rate index that shows the counties with the lowest unemployment. For income growth, we calculated the annual growth in median income over five years for each county and indexed the results.
Finally, we calculated the weighted average of the indices to yield an overall paycheck friendliness score. We used a one half weighting for semi-monthly paycheck and a one-sixth weighting for purchasing power, unemployment rate and income growth. We indexed the final number so higher values reflect the most paycheck friendly places.
Sources: SmartAsset, government websites, US Census Bureau 2016 5-Year American Community Survey, MIT Living Wage Study, Bureau of Labor Statistics