What Changes in Your Paycheck in Ohio
Your paycheck in Ohio shows an Ohio state income tax line item that grows progressively with income, starting at 0% for the first $1. For a $1 salary, you might see ~ $1-$1 annually (~ $1-$1 per biweekly paycheck) for state tax, reflecting the progressive brackets and the zero-percent bracket on the first $1 Many Ohioans also see local income tax deductions on their paycheck, varying by work location. Columbus residents might see a separate 2% income tax line item, meaning a $1 salary in Columbus might show $1 state plus $1 local ($1 total, ~ $1 per biweekly paycheck) The progressive brackets mean your state tax increases as you move through brackets, but the zero-percent bracket on low income provides significant relief for lower earners compared to flat-tax states.
Example State Tax in Ohio
What you'll pay in Ohio state income tax at different salary levels (single filer, no deductions):
| Gross Salary | State Tax (Year) | Effective Rate |
|---|---|---|
| $50,000 | $638 | 1.3% |
| $75,000 | $1,513 | 2.0% |
| $100,000 | $2,407 | 2.4% |
| $150,000 | $4,366 | 2.9% |
Use the calculator above to see your exact take-home pay with your filing status and deductions.
Understanding Ohio Taxes
Who Benefits
Ohio works best for lower and middle-income earners (under ~ $1 for singles, $1 for couples) who benefit from the zero-percent bracket on the first $1 of income and progressive brackets with relatively low top rates. At these income levels, effective state tax rates are 1%-3%, which can be competitive with or lower than flat-tax states Retirees also benefit from exemptions on Social Security and most retirement income, plus the zero-percent bracket helps retirees with lower fixed incomes.
Who May Not Benefit
Ohio is challenging for higher earners who live and work in cities with high local income taxes like Columbus, Cleveland, or Cincinnati. While the state rate tops out at 3.99%, local taxes can push combined rates to 5%-6.5%+, making Ohio expensive for high earners in urban areas. Someone earning $1 in Columbus might pay ~ $1 state plus $1 local ($1 total, ~ 5.3% effective rate), which could exceed what they'd pay in flat-tax states like Pennsylvania (3.07% state, varying local EIT) or Illinois (4.95% state, no local income tax). If you're a high earner who doesn't need to be in an Ohio city, rural areas with lower or no local taxes may be more favorable.
Key Facts That Affect Your Take-Home Pay
- Ohio uses a progressive income tax system with five brackets, but uniquely starts with a zero-percent bracket for the first $1 of income (for all filing statuses), meaning low-income earners pay no state income tax on their first ~ $1 of income—a significant advantage for lower earners compared to flat-tax states.
- Ohio's progressive brackets escalate from 0% for the first $1, then 2.5% up to $1, 3.5% up to $1, 3.75% up to $1, and a top rate of 3.99% for income above $1, making the top rate lower than most progressive states' top brackets but still higher than flat-tax states.
- Many Ohio cities and municipalities levy local income taxes on top of the state rate, ranging from 0.5% to 2.5% depending on where you work and live. Columbus, Cleveland, Cincinnati, and other major cities levy local income taxes (1%-2.5%), creating combined state-plus-local rates that can reach 4.5%-6.5%+ for city residents.
Common Mistakes People Make
Misconception: 'Progressive tax means I'll pay high rates in Ohio.' Reality: Ohio's progressive system starts with a 0% bracket for the first $1 of income, meaning lower earners may pay no state income tax at all—an advantage over flat-tax states like Pennsylvania (3.07%) or Illinois (4.95%) that tax all income from dollar one. Someone earning $1 in Ohio might pay ~ $1 annually (effective rate around 0.9%), while the same earner in Pennsylvania would pay $1 (3.07% flat rate).
Misconception: 'The state rate is all I'll pay.' Many Ohio cities add income taxes on top of the state rate. Columbus residents might pay 2% local income tax plus the state rate (which ranges from 0% to 3.99%), creating combined rates that can exceed 5%-6%+ depending on income level and work location. Your combined state-plus-local rate could be significantly higher than the state rate alone, especially in major cities.
Misconception: 'Ohio's top rate of 3.99% is low, so I'll pay less than in other states.' Reality: While Ohio's top rate is lower than many progressive states, the presence of local income taxes can push your combined rate higher. A Columbus resident earning $1 might pay ~ 2.5% state plus 2% local (4.5% combined), which could be more than a flat-tax state like Pennsylvania (3.07% state only, but with local EIT in some areas). Always factor in local taxes when comparing Ohio to other states.
One Thing to Know
Ohio has one of the largest zero-percent brackets in the nation ($1), meaning most lower and middle-income earners pay very little state income tax. However, many Ohio cities add local income taxes (1%-2.5%), which can double or triple your total tax burden depending on where you work—something that surprises people who assume the state rate is their total tax.
Important Notes
These calculations are estimates based on current tax law. Your actual take-home pay varies based on:
- Pre-tax deductions (401(k), health insurance, HSA, etc.)
- Your W-4 withholding elections
- Additional income or deductions at tax time
- Individual circumstances and tax situations
Tax rates are subject to change. Federal and state tax laws may be updated annually. This is not tax advice. For personalized help, consult a tax professional familiar with Ohio tax laws.