Ohio — Personal Income Tax

## Tax imposed on residents and nonresidents

Ohio imposes an annual personal income tax on every individual, trust, and estate residing in or earning or receiving income in Ohio, on those earning or receiving Ohio lottery winnings, prizes, or awards, on those earning or receiving winnings on casino or sports gaming, and on those otherwise having nexus with or in Ohio under the U.S. Constitution.

Source: Ohio Rev. Code § 5747.02(A)

## Filing requirement for individuals

An individual must file an Ohio income tax return for any taxable year for which the individual is liable for the tax imposed by Ohio Rev. Code § 5747.02, unless the total credits allowed under certain provisions (retirement income credit, senior citizen credit, and lump sum distribution credit) equal to or exceed the tax imposed.

Source: Ohio Rev. Code § 5747.08

## Residents

A resident of Ohio for the entire year must file an Ohio return if the individual has income. Ohio law defines a "resident" as an individual who is domiciled in Ohio, subject to the contact period test in Ohio Rev. Code § 5747.24.

Source: Ohio Rev. Code § 5747.01(I)

Residents must report all income on their Ohio return, regardless of where the income is earned.

## Part-year residents

Individuals who move into or out of Ohio during the tax year are part-year residents and must file an Ohio return if they have income. Part-year residents report income earned or received during the portion of the year they were Ohio residents, and Ohio-sourced income earned during the nonresident portion of the year.

## Nonresidents

Nonresidents must file an Ohio return if they have Ohio-sourced income. Ohio-sourced income includes wages for work performed in Ohio, income from an Ohio-based business or pass-through entity, Ohio real and tangible property income, and Ohio lottery or casino winnings.

Reciprocity exception

Ohio has reciprocity agreements with Indiana, Kentucky, Michigan, Pennsylvania, and West Virginia. Residents of those states who receive only wage income from Ohio sources are not required to file an Ohio return.

Source: Ohio Rev. Code § 5747.05(A)(2)

## Filing threshold

For individuals, no tax is imposed on Ohio adjusted gross income (less taxable business income and less exemptions) if the balance is equal to or less than $26,050 for taxable years beginning in 2026 and thereafter. For tax years 2025 and 2026, this threshold is not subject to annual inflation adjustment, due to a statutory suspension of the indexing provisions. While Ohio Rev. Code § 5747.02(A)(5) generally allows for inflation adjustment of tax brackets and thresholds, the state budget bill (2023 H.B. 33) expressly suspends such adjustments for these years.

Source: Ohio Rev. Code § 5747.02(A)(3), (A)(5); 2023 H.B. 33, § 757.20 (official enrolled PDF)

## School district income tax

Certain Ohio school districts impose a separate school district income tax. Individuals subject to a school district income tax must file Form SD 100 (School District Income Tax Return) in addition to the state return.

Source: Ohio Rev. Code § 5747.021

Note: The previous link to the enrolled version of HB 33 was broken; it has been replaced with a working official PDF as of this update. No material legal changes affecting who must file an Ohio personal income tax return were detected as of this review in June 2026. All other sources remain unchanged and valid.

Ohio imposes a graduated income tax on nonbusiness income (wages, salaries, interest, dividends, and other income that is not taxable business income). The tax is measured by Ohio adjusted gross income, less taxable business income and less exemptions for the taxpayer, spouse, and dependents.

For taxable years beginning in 2026 and thereafter, no tax is imposed if the balance obtained after subtracting taxable business income and exemptions is equal to or less than $26,050. If the balance exceeds $26,050, the tax is $332.00 plus 2.75% of the amount in excess of $26,050. This represents a flat-rate structure for all nonbusiness income above the threshold.

Suspension of inflation adjustment for 2026 and future years: The $26,050 threshold and tax amounts specified for taxable years beginning in 2026 and thereafter are not subject to annual inflation adjustment. This suspension results from explicit statutory action: Ohio Rev. Code § 5747.02(A)(5) would ordinarily require annual inflation indexing, but Section 757.20 of the state budget bill (2023 H.B. 33) suspends these adjustments for tax years 2025 and 2026 and continues the freeze unless and until specifically changed by future legislation. As of June 2026, these threshold and tax dollar amounts remain frozen for 2026 and onward, and are not indexed for inflation. The freeze is expressly reflected in both the Ohio Revised Code and the latest enacted state budget.

Taxable business income (from sole proprietorships, partnerships, S corporations, and LLCs) is taxed separately at a flat 3% rate under Ohio Rev. Code § 5747.02(A)(4)(a), after an exemption of the first $250,000.

Source: Ohio Rev. Code § 5747.02(A)(3), (A)(5); 2023 H.B. 33, § 757.20 (As Enrolled PDF)

Ohio imposes a flat 3% tax on taxable business income from sole proprietorships, partnerships, S corporations, and LLCs. The tax applies to business income remaining after subtracting the business income deduction allowed under Ohio law. That deduction is $250,000 for taxpayers filing jointly, or $125,000 for single filers and married taxpayers filing separately.

Source: Ohio Rev. Code § 5747.02(A)(4)

Ohio personal income tax returns are due on or before the fifteenth day of the fourth month following the close of the taxable year. For calendar-year taxpayers, this means the return is due April 15.

A taxpayer who receives a federal extension for filing automatically receives an Ohio extension to the same due date, provided the federal extension date is beyond Ohio's unextended due date. An extension to file does not extend the time to pay any tax due.

Source: Ohio Rev. Code § 5747.09; Ohio Admin. Code 5703-7-05

Ohio allows a personal exemption for the taxpayer, spouse, and each dependent. For taxable years beginning in 2026, the exemption amount is $2,350 if modified adjusted gross income (MAGI) is $40,000 or less; $2,100 if MAGI exceeds $40,000 but does not exceed $80,000; or $1,850 if MAGI exceeds $80,000. No exemption is allowed if MAGI equals or exceeds $500,000 for taxable years beginning in 2026 or thereafter. These amounts are subject to annual inflation adjustment by the Tax Commissioner based on changes in the gross domestic product deflator.

Source: Ohio Rev. Code § 5747.025

Ohio determines individual residency for personal income tax through a contact period test, codified at Ohio Rev. Code § 5747.24, supplemented and clarified by Ohio Admin. Code 5703-7-16, with substantive regulatory amendments that took effect June 29, 2026. Understanding this test is critical because Ohio residents owe tax on worldwide income, while nonresidents owe tax only on Ohio-sourced income.

## Contact period definition An individual has one contact period in Ohio if the individual is away overnight from an abode located outside Ohio and, while away overnight, spends at least some portion (however minimal) of each of two consecutive days in Ohio. "Away overnight" requires only that the individual is away from the out-of-state abode continuously across two days. The minimum duration does not matter. This statutory definition is confirmed and clarified by Ohio Admin. Code 5703-7-16(B) (amended effective June 29, 2026), which reiterates that any physical presence, regardless of purpose, satisfies the requirement.

## The 213-contact-period threshold and burdens of proof Ohio law creates two distinct presumptions of domicile based on contact periods:

• Fewer than 213 contact periods (with an Ohio abode): Such an individual is presumed domiciled in Ohio for the entire tax year, rebuttable by a preponderance of the evidence.
• 213 or more contact periods: Such an individual (with an Ohio abode) is presumed domiciled for the entire year, and may only rebut this presumption with clear and convincing evidence — a higher evidentiary burden. The regulation (OAC 5703-7-16, amended June 2026) now specifies the types of evidence accepted and clarifies the timing and scope of required documentation to support a rebuttal.

## Irrebuttable presumption of non-Ohio domicile An individual may claim an irrebuttable presumption against Ohio domicile if ALL of these are true:

• No more than 212 contact periods in the tax year;
• Maintains at least one out-of-state abode for the entire tax year, for which no federal depreciation deduction is claimed;
• No valid Ohio driver's license/ID during the tax year;
• No Ohio homestead exemption for the year;
• If attended/enrolled in an Ohio state college, tuition not based on Ohio abode.

Such a taxpayer must file a written statement with the Tax Commissioner by October 15 following year-end. The new regulation now includes explicit requirements for maintaining records/documentation (such as out-of-state lease, utility bills, digital travel records, etc.) to substantiate each prong.

## Burden of proof for contact period disputes If challenged, the taxpayer carries the burden to prove the number of contact periods by preponderance of evidence. The new June 2026 regulation spells out acceptable proof: contemporaneous records (e.g., cell phone location data, travel receipts), affidavits, or corroborating third-party statements. Lacking such proof, the presumption defaults against the taxpayer.

## Part-year residents The contact period test does not apply where domicile is changed to or from Ohio within the year. Such individuals are part-year residents. The regulation does not alter the statutory rule for such cases.

Regulatory update June 2026: Effective June 29, 2026, amendments to OAC 5703-7-16 clarify and expand accepted proof and documentation requirements for contact period and domicile claims. Practitioners should review the new regulation text for compliance in audits and pre-filing documentation.

Source: Ohio Rev. Code § 5747.24; Ohio Admin. Code 5703-7-16, as amended 06/29/2026

Ohio provides an individual income tax deduction for certain business income, but the statutory authority for the specific dollar amounts and the treatment by filing status is located in Ohio Rev. Code § 5747.01(A)(28).

Deduction Amounts by Filing Status: Ohio Rev. Code § 5747.01(A)(28) allows individuals to deduct:

• $125,000 of business income if the taxpayer is married filing separately, or
• $250,000 of business income for all other individuals (this includes joint returns and single filers).

This distinction is statutory: each spouse on a married filing separately return may claim up to $125,000, whereas the $250,000 amount applies to joint filers or single taxpayers. This provision has applied to taxable years beginning in 2016 and thereafter. The deduction applies only to business income as defined in the statute and is taken in computing Ohio adjusted gross income on the individual income tax return.

Interaction with Tax Rate: After deducting the allowable business income amount ($250,000/$125,000), any remaining business income is taxed at a flat 3% rate under Ohio Rev. Code § 5747.02(A)(4).

Source: Ohio Rev. Code § 5747.01(A)(28)

Not yet human confirmed.

Ohio requires individuals to pay estimated personal income tax if their estimated annual tax liability, after subtracting Ohio tax withheld and credits, exceeds $500. This requirement covers situations where wage withholding and other credits do not fully prepay the expected tax. The trigger and procedural rules are governed by Ohio Rev. Code § 5747.09.

Threshold for Estimated Tax Payments A taxpayer must declare and pay estimated personal income tax if the amount payable as estimated tax, less withholding and credits, is more than $500 for the year. This applies particularly to income not subject to full withholding (e.g., self-employment, investment, retirement income). Source: Ohio Rev. Code § 5747.09(B).

Quarterly Due Dates and Installment Percentages Ohio law requires four cumulative installments:

• 22.5% of annual estimated tax by April 15 (15th day of the 4th month of the taxable year),
• 45% by June 15 (15th day of the 6th month),
• 67.5% by September 15 (15th day of the 9th month),
• 90% by January 15 of the following year (15th day of the 1st month after year-end).

These percentages are applied cumulatively. If a due date falls on a weekend or legal holiday, the payment is due on the next business day. Source: Ohio Rev. Code § 5747.09(C).

Interest Penalty for Underpayment and Safe Harbor Relief If the required installment amount is not paid by each due date, interest is owed on the underpaid amount. The interest rate is set annually using the calculation method prescribed in Ohio Rev. Code § 5703.47 (federal short-term rate plus three percentage points, rounded). The actual interest rate is published annually by the Ohio Tax Commissioner. Source: Ohio Rev. Code § 5747.09(D) & (G); Ohio Rev. Code § 5703.47.

A taxpayer may avoid the interest penalty if, by each due date, total payments (withholding plus estimates) meet either of these safe-harbor tests:

• Equal at least 90% of the current year’s tax liability (annualized income permitted per § 5747.09(E)(1)), or
• Equal 100% of the prior year’s tax liability (if the prior year return covered a full 12-month period and was timely filed per § 5747.09(E)(2)).

Taxpayers use Ohio Form IT/SD 2210 to determine and report underpayment penalty or to demonstrate safe-harbor eligibility.

Special annualization and exceptions for qualifying farmers and fishermen are outlined in the statute but are not covered in detail here.

Source: Ohio Rev. Code § 5747.09; Ohio Rev. Code § 5703.47

Not yet human confirmed.

Ohio residents (and part-year residents, for the period of Ohio residence) are entitled to a credit against their Ohio personal income tax for income taxes paid to another state, the District of Columbia, or a qualifying political subdivision outside Ohio, on income also subject to Ohio tax. The purpose is to avoid double taxation of the same income by Ohio and another jurisdiction.

Statutory scope and eligibility

• The credit applies to individuals, estates, and trusts required to file an Ohio personal income tax return.
• To qualify, the taxpayer must have paid income tax to another state, the District of Columbia, or a "political subdivision of another state that is not located in Ohio," and the tax must be imposed on or measured by income (not sales, franchise, or business privilege taxes).
• No credit is allowed for tax paid to an Ohio municipality or other Ohio political subdivision, nor for excise or franchise taxes in other states unless those are imposed directly on or measured by taxable income.

Amount and statutory calculation Ohio Rev. Code § 5747.05(B) provides:

• The credit equals the lesser of:

1. The amount of income tax actually paid to the other jurisdiction on the income that is also taxed by Ohio; or
2. The amount of Ohio tax due on that same income, as calculated under Ohio law and using Ohio tax rates.

• For credits relating to political subdivisions outside Ohio, the out-of-state local tax must be imposed on, or measured by, income included in Ohio adjusted gross income. The aggregate credit for all such local and state out-of-state taxes is limited to the total Ohio tax due on the relevant income.
• If the taxpayer paid both a state and a local tax to the same jurisdiction (e.g., New York State and New York City), the credit for local tax may not exceed the difference between Ohio’s tax on the relevant income and the credit for the state-level tax paid to that jurisdiction, per the statutory ordering.

Order of claiming

• The resident credit must be claimed after the joint filing credit, retirement income credit, senior citizen credit, lump sum distribution credit, and certain others, as directed by statute. See Ohio Rev. Code § 5747.05(B)(1)–(7).

Documentation

• Taxpayers must retain documentation proving payment and computation of income subject to out-of-state taxation (such as copies of the other state’s tax return and proof of payment). The Ohio Department of Taxation may require this evidence to verify the credit’s validity.

Source: Ohio Rev. Code § 5747.05(B)

Ohio allows individual school districts to impose a local income tax, collected and administered by the Ohio Department of Taxation, in addition to the state personal income tax. Individuals residing in a taxing school district are required to file and pay the school district income tax, which is a separate liability from the state tax and reported on a distinct return (Form SD 100).

Statutory Authority and Adoption The statutory basis for Ohio's school district income tax is found in Ohio Rev. Code § 5748.01 et seq. A school district may submit the imposition of school district income tax to its voters, specifying the tax base (either (1) Ohio “taxable income” or (2) “earned income” only) and the proposed rate in increments of 0.25%. The tax is effective from the date approved by voters, and the specific locality defines the base and rate by ballot measure. The Ohio Department of Taxation publishes current rates and a complete list of school districts with enacted income taxes.

Tax Bases: Traditional vs. Earned Income Only

• "Taxable income" base taxes all income subject to Ohio personal income tax, including wages, business/partnership income, interest, dividends, and capital gains.
• "Earned income only" base limits the tax to certain earned income (generally, wages and self-employment income) and specifically excludes interest, dividends, pensions, retirement distributions, capital gains, and other unearned income.

See Ohio Rev. Code § 5748.01(E), (F) for formal distinctions.

Rates and School District Listings Rates vary by district—from 0.50% to 2.25%, in 0.25% increments as authorized by statute. The official, regularly updated list of every school district imposing a tax, their base type, and rate is issued by the Ohio Department of Taxation in its annual school district income tax publication (and available online as a lookup tool).

Filing and Payment Obligations

• Residents of a taxing school district must file the Ohio School District Income Tax Return (Form SD 100) annually, even if no tax is owed, so long as any gross income was earned while residing in the district.
• Taxpayers may be subject to multiple school district taxes if they moved across districts during the tax year.
• The SD 100 is separate from (but filed alongside) the state income tax return (Form IT 1040).
• Both “traditional” and “earned income only” base districts use the same return but different calculation lines as directed by instructions.

See the Department’s official lookup for applying the current year’s map and rates: Ohio School District Income Tax Finder.

Source: Ohio Rev. Code § 5748.01 et seq.; Ohio Department of Taxation School District Income Tax

Ohio law applies specific allocation and apportionment rules to determine the amount of income taxable by the state for nonresidents and part-year residents. These rules, grounded in statute, dictate what is considered "Ohio source" income and are essential for the correct calculation of the Ohio personal income tax and nonresident credit (Form IT NRC).

Nonbusiness income — Allocation (§ 5747.20):

• Interest, dividends, and similar income from intangible personal property are allocated to the taxpayer's state of domicile. For nonresidents, this generally means such intangible income is not taxed by Ohio unless it arises from business activity in Ohio.
• Rents and royalties from real property are allocated to Ohio if the property is located in Ohio, regardless of the taxpayer's residency.
• Income from tangible personal property (e.g., gain on sale) is allocated to the state where property is located at the time of sale. For property physically in Ohio, the income is Ohio-sourced.

Business income — Apportionment (§ 5747.21):

• Business income (from sole proprietorships, partnerships, S corporations, or LLCs) is apportioned using a single sales factor. The numerator of the sales factor is the total sales made in Ohio during the tax year; the denominator is the taxpayer's total sales everywhere.
• Only the Ohio-apportioned share of business income is taxed as Ohio-source for nonresidents and for Ohio nonresident periods of a part-year resident.
• Definitions of "business" and "nonbusiness" income are found in R.C. § 5747.01.

Pass-through entity income (§ 5747.22):

• Each taxpayer must report their distributive share of Ohio-source income from pass-through entities. The sourcing is determined by looking through to the underlying sales factor or property/location breakdown of the entity per statute, not simply by the recipient’s residence.

Application to Part-Year Residents:

• Part-year residents must allocate and apportion income using the above rules based on periods of residency and nonresidency. In general, income earned while a resident is included in full regardless of source; income earned as a nonresident is taxed only if sourced to Ohio under allocation/apportionment rules.

For all income types, the statutes cited govern income sourcing for tax years after January 1, 2003, with amendments primarily technical. The current text as of June 2026 is operative.

Source: Ohio Rev. Code § 5747.20; Ohio Rev. Code § 5747.21; Ohio Rev. Code § 5747.22

Ohio personal income tax is calculated using "Ohio adjusted gross income" (OAGI), which starts with federal adjusted gross income (Federal AGI) and requires a number of specific income additions and deductions (sometimes called “modifications”) as set forth in Ohio Rev. Code § 5747.01. Practitioners must be aware of these common state-specific modifications, as errors frequently occur if relying solely on Federal AGI.

## Key Additions to Federal AGI (Ohio Rev. Code § 5747.01(A)) The following items, among others, must be added back to federal AGI to arrive at OAGI:

• Interest income on obligations of states other than Ohio and political subdivisions thereof (e.g., municipal bond interest from another state). See § 5747.01(A)(1).
• Certain federal and state income tax refunds or credits previously deducted on a federal return but not included in federal AGI. See § 5747.01(A)(4).
• Amounts deducted federally for state income taxes (for example, if a taxpayer itemized state income taxes for federal purposes). See § 5747.01(A)(3).
• Section 529 plan or college savings account distributions used for non-qualified expenses if previously deducted for Ohio tax purposes. See § 5747.01(A)(10)/(11).

## Key Deductions from Federal AGI (Ohio Rev. Code § 5747.01(S)) The following major deductions (subtractions) are allowed in arriving at OAGI:

• Social Security and Tier 1 Railroad Retirement benefits to the extent included in federal AGI. See § 5747.01(S)(1).
• U.S. government interest income (such as savings bonds and U.S. Treasury obligations), to the extent included in federal AGI but exempt for Ohio. See § 5747.01(S)(2).
• Military pay and allowances for active duty as provided by law. See § 5747.01(S)(8)/(10).
• Contributions or income related to Ohio’s 529 Plan (Ohio CollegeAdvantage) that are included in federal AGI. See § 5747.01(S)(6).
• Resident credit for pass-through entity income taxed to the PTE — deducted as part of statutory adjustments. See § 5747.01(S)(17).

## Additional Modifications

• Other additions and deductions exist in statute for unique situations such as disability pay, military or defense-related exclusions, or compensation for service in hazardous duty zones.

## Cumulative List and Official Resources Full lists of all additions and deductions appear in Ohio Rev. Code § 5747.01(A) (additions) and § 5747.01(S) (deductions). Taxpayers and practitioners should consult the current tax year’s statute and the Ohio Department of Taxation's instructions for Form IT 1040, which enumerate these items on Schedules A (Additions) and B (Deductions).

Source: Ohio Rev. Code § 5747.01(A) and (S)