Overview of Ohio Taxes
Ohio has a progressive income tax. While the state rate is relatively low compared to other states with an income tax, many Ohio municipalities charge an additional income tax. Sales tax is also collected at both the state and local level. The state’s average effective property tax rate is among the ten highest in the country.
Number of Personal Exemptions
Your Income Taxes Breakdown
|Tax Type||Marginal |
|Total Income Taxes|
|Income After Taxes|
* These are the taxes owed for the 2018 - 2019 filing season.
Changes to Your Federal Income
Taxes Under the 2018 Tax Reform
- Your marginal federal income tax rate
- Your effective federal income tax rate
- Your federal income taxes
Total Estimated 2018 Tax Burden
Total Estimated Tax Burden $
Percent of income to taxes = %
- 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 state tax quick facts
Starting in 2005, Ohio’s state income taxes saw a gradual decrease each year, falling from a top rate of 7.185% to 4.997% as of the end of 2015. For the 2018 tax year, which you file in early 2019, the top rate is 4.997%. Alone, that would place Ohio at the lower end of states with an income tax, but many Ohio municipalities also charge income taxes, some as high as 3%.
Similarly, Ohio’s statewide sales tax rate is 5.75%, which matches the national average; but when combined with county sales tax rates ranging from 0.75% up to 2.25%, the total average rate is 7.15%. This is the 19th-highest sales tax rate in the U.S. In all, the state and local tax burden for the average Ohio taxpayer is slightly above the national average, but that burden varies depending on what city and county a taxpayer calls home.
Ohio State Income Tax
Like the federal government, Ohio collects taxes based on income “brackets.” That is, the higher a taxpayer’s income, the higher rate he or she pays. These rates vary from half a percent of taxable income, up to 4.997%. The table below shows the marginal rate paid on taxable income for filers in Ohio.
Income Tax Brackets
|Ohio Taxable Income||Rate|
|$0 - $10,850||0%|
|$10,851 - $16,300||1.980%|
|$16,300 - $21,750||2.476%|
|$21,750 - $43,450||2.969%|
|$43,450 - $86,900||3.465%|
|$86,900 - $108,700||3.960%|
|$108,700 - $217,400||4.957%|
These are rates on taxable income, which is lower than a taxpayer’s actual income. Why? Deductions and exemptions. State income taxes in Ohio are based off of your federal adjusted gross income, which incorporates certain federal deductions. Ohio taxpayers cannot claim separate itemized deductions on their state tax returns.
In Ohio, filers can claim an additional exemption of between $1,800 and $2,300, depending on income level. Individuals making $40,000 or less are eligible for the exemption of $2,300. Those making over $80,000 can claim an exemption of $1,800. Earners between those two values are eligible for an exemption of $2,050. So, for example, someone with a federal AGI of $35,000 per year would only be taxed on $32,700 of it.
Ohio Municipal Income Taxes
Many municipalities and school districts in Ohio collect income taxes of their own, with rates as high as 2.5% in some areas. Below are the municipal tax rates for Ohio’s largest cities, as well as the rates for every school district that collects an income tax. These are all assessed at a flat rate, based on the taxable income used for Ohio state taxes.
Local Income Tax Brackets
|School District||Tax Rate|
|Clear Fork Valley||1.00%|
|Crestview (Columbiana County)||1.00%|
|Crestview (Van Wert County)||1.00%|
|Highland (Morrow County)||0.50%|
|Lakota (Sandusky County)||1.50%|
|Madison (Butler County)||0.50%|
|Miller City-New Cleveland Ls||1.25%|
|Northeastern (Clark County)||1.00%|
|Northwest (Stark County)||1.00%|
|Northwestern (Clark County)||1.00%|
|Northwestern (Wayne County)||1.25%|
|Riverside (Logan County)||1.75%|
|Springfield (Mahoning County)||1.00%|
|Twin Valley Community||0.75%|
|Upper Scioto Valley||0.50%|
|Western Reserve (Huron County)||1.25%|
Ohio Sales Tax
The statewide sales tax rate in Ohio is 5.75%, but Ohio counties collect their own sales taxes, of between 0.75% and 2.25%. That means the lowest rate possible is 6.5% and the highest possible rate is 8%. Below is a table of sales tax rates for every county in Ohio.
Sales Tax Rates (Updated December 2018)
|County||State Rate||County Rate||Total Sales Tax|
While those taxes apply to nearly every product that can be bought, there are some exceptions. For example, there is no sales tax on newspapers, prescription drugs, property used for agricultural production (a tractor, for example) or utilities such as gas, water and electricity. Food is also exempt from sales tax, so long as it is not prepared for on-site consumption (at a restaurant, for example).
Ohio Alcohol and Tobacco Tax
Ohio also collects additional excise taxes on alcohol and tobacco. It has the 18th lowest alcoholic beverage excise tax in the nation, at 18 cents per gallon (or about 1.7 cents per 12 ounce beer). The tobacco tax is currently $1.60 per pack of 20, although in recent years, there have been proposals to raise that tax to as high as $2.25.
Ohio Property Tax
According to the Ohio Department of Taxation, the property tax is the oldest tax in Ohio, dating back in its current form to 1825. The state’s average effective property tax rate is 1.57%, making it the 13th-highest in the country. However, since it is primarily collected at the county level, that rate will vary depending on where you live. In Cuyahoga County, for example, the effective property tax rate was 2.41% in 2017. On the other hand, in east Ohio’s Lawrence County, the effective rate was just 0.86%.
While Ohio’s property tax may be above national average, its rates remain lower than many of the surrounding Midwest states. If you would like to refinance your home or you are looking to move to the Buckeye state, our Ohio mortgage guide has all the essential information about getting a mortgage in the state.
Ohio Gas Tax
Gasoline is taxed at a rate of 28.01 cents per gallon in Ohio. When combined with the federal gas tax, that means Ohio citizens pay a total of 46.41 cents per gallon in taxes.
Ohio Estate Tax
As of January 1, 2013, there is no estate tax in Ohio. For the estates of persons who died prior to that date, however, the prior tax may still be due.
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Places with the Lowest Tax Burden
Are you curious how your tax burden stacks up against others in your state? SmartAsset’s interactive map highlights the counties with the lowest tax burden. Scroll over any county in the state to learn about taxes in that specific area.
Where you live can have a big impact on both which types of taxes you have to pay each year and how much money you spend on them. SmartAsset calculated the amount of money a specific person would pay in income, sales, property and fuel taxes in each county in the country and ranked the lowest to highest tax burden.
To better compare income tax burdens across counties, we used the national median household income. We then applied relevant deductions and exemptions before calculating federal, state and local income taxes.
In order to determine sales tax burden we estimated that 35% of take-home (after-tax) pay is spent on taxable goods. We multiplied the average sales tax rate for a county by the household income less income tax. This product is then multiplied by 35% to estimate the sales tax paid.
For property taxes, we compared the median property taxes paid in each county.
For fuel taxes, we first distributed statewide vehicle miles traveled down to the county level using the number of vehicles in each county. We then calculated the total number of licensed drivers within each county. The countywide miles were then distributed amongst the licensed drivers in the county, which gave us the miles driven per licensed driver. Using the nationwide average fuel economy, we calculated the average gallons of gas used per driver in each county and multiplied that by the fuel tax.
We then added the dollar amount for income, sales, property and fuel taxes to calculate a total tax burden. Finally, we created the Tax Burden Index in order to show how each county in the country compares to the county with the lowest tax burden (that is the county with a Tax Burden Index of 100).