How Much Is The Income Tax In Ohio? Ohio’s income tax rates for 2024 range from 0% to 3.50% for taxable nonbusiness income, offering opportunities for strategic partnerships that can potentially enhance your income, as explored at income-partners.net. This guide provides a detailed breakdown of Ohio’s income tax structure, helping you navigate the tax landscape. Discover valuable insights and explore options for optimizing your financial strategies to achieve financial success and potential tax savings.
1. Understanding Ohio’s Income Tax System
Ohio’s income tax system is structured with progressive tax brackets, meaning the tax rate increases as your income rises. Let’s delve into the key aspects of this system:
1.1. How Does Ohio’s Income Tax System Work?
Ohio’s income tax system operates on a progressive scale, where different income levels are taxed at different rates. In 2024, the tax rates range from 0% to 3.50%, depending on your taxable income. This structure ensures that individuals with higher incomes contribute a larger percentage of their earnings towards state taxes. Understanding these tax brackets is crucial for effective financial planning and tax optimization.
1.2. What is Ohio Taxable Income?
Ohio Taxable Income (OTI) represents the portion of your income that is subject to state income tax. It is calculated by starting with your federal adjusted gross income (AGI) and then making certain additions and subtractions as allowed under Ohio law. Common subtractions include exemptions for dependents, retirement income, and college savings account contributions. By understanding which deductions and exemptions you’re eligible for, you can lower your OTI and potentially reduce your tax liability.
1.3. What Are Ohio Income Tax Brackets for 2024?
For the taxable years beginning in 2024, Ohio’s income tax brackets are as follows:
| Ohio Taxable Income | Tax Calculation |
|---|---|
| $0 – $26,050 | 0.000% of Ohio taxable nonbusiness income |
| $26,051 – $100,000 | $360.69 + 2.75% of excess over $26,050 |
| more than $100,000 | $2,394.32 + 3.50% of excess over $100,000 |
These brackets determine the rate at which your income is taxed. For example, if your taxable income is $60,000, you’ll pay 0% on the first $26,050, and 2.75% on the remaining $33,950.
1.4. How is Ohio Income Tax Calculated?
Calculating your Ohio income tax involves several steps. First, determine your Ohio Taxable Income (OTI) by subtracting eligible deductions and exemptions from your federal adjusted gross income (AGI). Next, apply the appropriate tax rates based on the income brackets for the given tax year.
For example, if your OTI is $75,000 in 2024:
- You pay 0% on the first $26,050.
- You pay 2.75% on the income between $26,051 and $75,000, which is $48,949.
The calculation would be:
$360.69 + (2.75% * $48,949) = $360.69 + $1346.09 = $1706.78Therefore, your Ohio income tax would be $1706.78.
1.5. What is the Business Income Tax in Ohio?
As of 2016, taxable business income in Ohio is taxed at a flat rate. Understanding the specific rate and how it applies to your business is crucial for tax compliance and financial planning.
2. Ohio Income Tax Rates Over the Years
Ohio’s income tax rates have varied over the years. Here’s a look at the rates for different taxable years:
2.1. Ohio Income Tax Rates for 2023
For the taxable years beginning in 2023, the Ohio income tax rates were:
| Ohio Taxable Income | Tax Calculation |
|---|---|
| $0 – $26,050 | 0.000% of Ohio taxable nonbusiness income |
| $26,051 – $100,000 | $360.69 + 2.75% of excess over $26,050 |
| $100,000- $115,300 | $2,394.32 + 3.688% of excess over $100,000 |
| more than $115,300 | $2,958.58+ 3.750% of excess over $115,300 |
2.2. Ohio Income Tax Rates for 2022
For the taxable years beginning in 2022, the Ohio income tax rates were:
| Ohio Taxable Income | Tax Calculation |
|---|---|
| 0 – $26,050 | 0.000% |
| $26,051- $46,100 | $360.69 + 2.765% of excess over $26,050 |
| $46,100- $92,150 | $915.07 + 3.226% of excess over $46,100 |
| $92,150 – $115,300 | $2,400.64 + 3.688% of excess over $92,150 |
| more than $115,300 | $3,254.41+ 3.990% of excess over $115,300 |
2.3. Ohio Income Tax Rates for 2021
For the taxable years beginning in 2021, the Ohio income tax rates were:
| Ohio Taxable Income | Tax Calculation |
|---|---|
| 0 – $25,000 | 0.000% |
| $25,001- $44,250 | $346.16+ 2.765% of excess over $25,000 |
| $44,250 – $88,450 | $878.42+ 3.226% of excess over $44,250 |
| $88,450 – $110,650 | $2,304.31+ 3.688% of excess over $88,450 |
| more than $110,650 | $3,123.05+ 3.990% of excess over $110,650 |
2.4. Ohio Income Tax Rates for 2020
For the taxable years beginning in 2020, the Ohio income tax rates were:
| Ohio Taxable Income | Tax Calculation |
|---|---|
| 0 – $22,150 | 0.000% |
| $22,151- $44,250 | $316.18+ 2.850% of excess over $22,150 |
| $44,250 – $88,450 | $946.03 + 3.326% of excess over $44,250 |
| $88,450 – $110,650 | $2,416.12 + 3.802% of excess over $88,450 |
| $110,650 – $221,300 | $3,260.16 + 4.413% of excess over $110,650 |
| more than $221,300 | $8,143.14 + 4.797% of excess over $221,300 |
2.5. Ohio Income Tax Rates for 2019
For the taxable years beginning in 2019, the Ohio income tax rates were:
| Ohio Taxable Income | Tax Calculation |
|---|---|
| 0 – $21,750 | 0.000% |
| $21,751 – $43,450 | $310.47 + 2.850% of excess over $21,750 |
| $43,450 – $86,900 | $928.92 + 3.326% of excess over $43,450 |
| $86,900 – $108,700 | $2,374.07 + 3.802% of excess over $86,900 |
| $108,700 – $217,400 | $3,202.91 + 4.413% of excess over $108,700 |
| more than $217,400 | $7,999.84 + 4.797% of excess over $217,400 |
2.6. Ohio Income Tax Rates for 2018
For the taxable years beginning in 2018, the Ohio income tax rates were:
| Ohio Taxable Income | Tax Calculation |
|---|---|
| $0 – $10,850 | 0.000% |
| $10,851 – $16,300 | $80.56 +1.980% of excess over $10,851 |
| $16,300 – $21,750 | $188.47 + 2.476% of excess over $16,300 |
| $21,750 – $43,450 | $323.41 + 2.969% of excess over $21,750 |
| $43,450 – $86,900 | $967.68 + 3.465% of excess over $43,450 |
| $86,900 – $108,700 | $2,473.22 + 3.960% of excess over $86,900 |
| $108,700 – $217,400 | $3,336.50 + 4.597% of excess over $108,700 |
| more than $217,400 | $8,333.44 + 4.997% of excess of $217,400 |
2.7. Ohio Income Tax Rates for 2017
For the taxable years beginning in 2017, the Ohio income tax rates were:
| Ohio Taxable Income | Tax Calculation |
|---|---|
| 0 – $10,650 | 0.000% |
| $10,651 – $16,000 | $79.08 + 1.980% of excess over $10,650 |
| $16,000 – $21,350 | $185.01 + 2.476% of excess over $16,000 |
| $21,350 – $42,650 | $317.48 + 2.969% of excess over $21,350 |
| $42,650 – $85,300 | $949.88 + 3.465% of excess over $42,650 |
| $85,300 – $106,650 | $2,427.70 + 3.960% of excess over $85,300 |
| $106,650 – $213,350 | $3,273.16 + 4.597% of excess over $106,650 |
| more than $213,350 | $8,178.16 + 4.997% of excess over $213,350 |
2.8. Ohio Income Tax Rates for 2016
For the taxable years beginning in 2016, the Ohio income tax rates were:
| Ohio Taxable Income | Tax Calculation |
|---|---|
| 0 – $5,250 | 0.495% |
| $5,250– $10,500 | $25.99+ .990% of excess over $5,250 |
| $10,500 – $15,800 | $77.97+ 1.980% of excess over $10,500 |
| $15,800 – $21,100 | $182.91 + 2.476% of excess over $15,800 |
| $21,100 – $42,100 | $314.14 + 2.969% of excess over $21,100 |
| $42,100 – $84,200 | $937.63 + 3.465% of excess over $42,100 |
| $84,200 – $105,300 | $2,396.40 + 3.960% of excess over $84,200 |
| $105,300 – $210,600 | $3,231.96 + 4.597% of excess over $105,300 |
| more than $210,600 | $8,072.60 + 4.997% of excess over $210,600 |
2.9. Ohio Income Tax Rates for 2015
For the taxable years beginning in 2015, the Ohio income tax rates were:
| Ohio Taxable Income | Tax Calculation |
|---|---|
| 0– $5,200 | 0.495% |
| $5,200– $10,400 | $25.74+ .990% of excess over $5,200 |
| $10,400 – $15,650 | $77.22+ 1.980% of excess over $10,400 |
| $15,650 – $20,900 | $181.17 + 2.476% of excess over $15,650 |
| $20,900 – $41,700 | $311.16 + 2.969% of excess over $20,900 |
| $41,700 – $83,350 | $928.71 + 3.465% of excess over $41,700 |
| $83,350 – $104,250 | $2,371.88 + 3.960% of excess over $83,350 |
| $104,250 – $208,500 | $3,199.52 + 4.597% of excess over $104,250 |
| more than $208,500 | $7,991.89 + 4.997% of excess over $208,500 |
2.10. Ohio Income Tax Rates for 2014
For the taxable years beginning in 2014, the Ohio income tax rates were:
| Ohio Taxable Income | Tax Calculation |
|---|---|
| 0 – $5,200 | 0.528% |
| $5,200– $10,400 | $27.46+ 1.057% of excess over $5,200 |
| $10,400 – $15,650 | $82.42+ 2.113% of excess over $10,400 |
| $15,650 – $20,900 | $193.35 + 2.642% of excess over $15,650 |
| $20,900 – $41,700 | $332.06 + 3.169% of excess over $20,900 |
| $41,700 – $83,350 | $991.21 + 3.698% of excess over $41,700 |
| $83,350 – $104,250 | $2,531.43 + 4.226% of excess over $83,350 |
| $104,250 – $208,500 | $3,414.66 + 4.906% of excess over $104,250 |
| more than $208,500 | $8,529.17 + 5.333% of excess over $208,500 |
2.11. Ohio Income Tax Rates for 2013
For the taxable years beginning in 2013, the Ohio income tax rates were:
| Ohio Taxable Income | Tax Calculation |
|---|---|
| 0 – $5,200 | 0.537% |
| $5,200– $10,400 | $27.92+ 1.074% of excess over $5,200 |
| $10,400 – $15,650 | $83.77+ 2.148% of excess over $10,400 |
| $15,650 – $20,900 | $196.54 + 2.686% of excess over $15,650 |
| $20,900 – $41,700 | $337.56 + 3.222% of excess over $20,900 |
| $41,700 – $83,350 | $1,007.74 + 3.760% of excess over $41,700 |
| $83,350 – $104,250 | $2,573.78 + 4.296% of excess over $83,350 |
| $104,250 – $208,500 | $3,471.64 + 4.988% of excess over $104,250 |
| more than $208,500 | $8,671.63 + 5.421% of excess over $208,500 |
2.12. Ohio Income Tax Rates for 2012
For the taxable years beginning in 2012, the Ohio income tax rates were:
| Ohio Taxable Income | Tax Calculation |
|---|---|
| 0 – $5,200 | 0.587% |
| $5,200– $10,400 | $30.52+ 1.174% of excess over $5,200 |
| $10,400 – $15,650 | $91.57+ 2.348% of excess over $10,400 |
| $15,650 – $20,900 | $214.84 + 2.935% of excess over $15,650 |
| $20,900 – $41,700 | $368.93 + 3.521% of excess over $20,900 |
| $41,700 – $83,350 | $1,101.30 + 4.109% of excess over $41,700 |
| $83,350 – $104,250 | $2,812.70 + 4.695% of excess over $83,350 |
| $104,250 – $208,500 | $3,793.96 + 5.451% of excess over $104,250 |
| more than $208,500 | $9,476.63 + 5.925% of excess over $208,500 |
2.13. Ohio Income Tax Rates for 2011
For the taxable years beginning in 2011, the Ohio income tax rates were:
| Ohio Taxable Income | Tax Calculation |
|---|---|
| 0 – $5,100 | 0.587% |
| $5,100 – $10,200 | $29.94 + 1.174% of excess over $5,100 |
| $10,200 – $15,350 | $89.81 + 2.348% of excess over $10,200 |
| $15,350 – $20,450 | $210.73 + 2.935% of excess over $15,350 |
| $20,450 – $40,850 | $360.42 + 3.521% of excess over $20,450 |
| $40,850 – $81,650 | $1,078.70 + 4.109% of excess over $40,850 |
| $81,650 – $102,100 | $2,755.17 + 4.695% of excess over $81,650 |
| $102,100 – $204,200 | $3,715.30 + 5.451% of excess over $102,100 |
| more than $204,200 | $9,280.77 + 5.925% of excess over $204,200 |
2.14. Ohio Income Tax Rates for 2010
For the taxable years beginning in 2010, the Ohio income tax rates were:
| Ohio Taxable Income | Tax Calculation |
|---|---|
| 0 – $5,050 | 0.618% of Ohio taxable income |
| $5,050 – $10,100 | $31.21 + 1.236% of excess of $5,050 |
| $10,100 – $15,150 | $93.63 + 2.473% of excess over $10,100 |
| $15,150 – $20,200 | $218.52 + 3.091% of excess over $15,150 |
| $20,200 – $40,350 | $374.62 + 3.708% of excess over $20,200 |
| $40,350 – $80,700 | $1,121.78 + 4.327% of excess over $40,350 |
| $80,700 – $100,900 | $2,867.72 + 4.945% of excess over $80,700 |
| $100,900 – $201,800 | $3,866.61 + 5.741% of excess over $100,900 |
| more than $201,800 | $9,659.28 + 6.24% of excess over $201,800 |
2.15. Ohio Income Tax Rates for 2008 and 2009
For the taxable years beginning in 2008 and 2009, the Ohio income tax rates were:
| Ohio Taxable Income | Tax Calculation |
|---|---|
| 0 – $5,000 | 0.618% of Ohio taxable income |
| $5,000 – $10,000 | $30.90 + 1.236% of excess of $5,000 |
| $10,000 – $15,000 | $92.70 + 2.473% of excess over $10,000 |
| $15,000 – $20,000 | $216.35 + 3.091% of excess over $15,000 |
| $20,000 – $40,000 | $370.90 + 3.708% of excess over $20,000 |
| $40,000 – $80,000 | $1,112.50 + 4.327% of excess over $40,000 |
| $80,000 – $100,000 | $2,843.30 + 4.945% of excess over $80,000 |
| $100,000 – $200,000 | $3,832.30 + 5.741% of excess over $100,000 |
| more than $200,000 | $9,573.30 + 6.24% of excess over $200,000 |
2.16. Ohio Income Tax Rates for 2007
For the taxable years beginning in 2007, the Ohio income tax rates were:
| Ohio Taxable Income | Tax Calculation |
|---|---|
| 0 – $5,000 | 0.649% of Ohio taxable income |
| $5,000 – $10,000 | $32.45 + 1.299% of excess of $5,000 |
| $10,000 – $15,000 | $97.40 + 2.598% of excess over $10,000 |
| $15,000 – $20,000 | $227.30 + 3.247% of excess over $15,000 |
| $20,000 – $40,000 | $389.65 + 3.895% of excess over $20,000 |
| $40,000 – $80,000 | $1,168.65 + 4.546% of excess over $40,000 |
| $80,000 – $100,000 | $2,987.05 + 5.194% of excess over $80,000 |
| $100,000 – $200,000 | $4,025.85 + 6.031% of excess over $100,000 |
| more than $200,000 | $10,056.85 + 6.100%% of excess over $200,000 |
2.17. Ohio Income Tax Rates for 2006
For the taxable years beginning in 2006, the Ohio income tax rates were:
| Ohio Taxable Income | Tax Calculation |
|---|---|
| 0 – $5,000 | 0.681% of Ohio taxable income |
| $5,000 – $10,000 | $34.05 + 1.361% of excess of $5,000 |
| $10,000 – $15,000 | $102.10 + 2.722% of excess over $10,000 |
| $15,000 – $20,000 | $238.20 + 3.403% of excess over $15,000 |
| $20,000 – $40,000 | $408.35 + 4.083% of excess over $20,000 |
| $40,000 – $80,000 | $1,224.95 + 4.764% of excess over $40,000 |
| $80,000 – $100,000 | $3,130.55 + 5.444% of excess over $80,000 |
| $100,000 – $200,000 | $4,219.35 + 6.32% of excess over $100,000 |
| more than $200,000 | $10,539.35 + 6.87% of excess over $200,000 |
2.18. Ohio Income Tax Rates for 2005
For the taxable years beginning in 2005, the Ohio income tax rates were:
| Ohio Taxable Income | Tax Calculation |
|---|---|
| 0 – $5,000 | 0.712% of Ohio taxable income |
| $5,000 – $10,000 | $35.60 + 1.424% of excess of $5,000 |
| $10,000 – $15,000 | $106.80 + 2.847% of excess over $10,000 |
| $15,000 – $20,000 | $249.15 + 3.559% of excess over $15,000 |
| $20,000 – $40,000 | $427.10 + 4.27% of excess over $20,000 |
| $40,000 – $80,000 | $1,281.10 + 4.983% of excess over $40,000 |
| $80,000 – $100,000 | $3,274.30 + 5.693% of excess over $80,000 |
| $100,000 – $200,000 | $4,412.90 + 6.61% of excess over $100,000 |
| more than $200,000 | $11,022.90 + 7.185% of excess over $200,000 |
3. Strategies to Minimize Ohio Income Tax
Minimizing your Ohio income tax involves strategic planning and leveraging available deductions and credits.
3.1. What Are Common Ohio Income Tax Deductions?
Ohio offers several deductions that can reduce your taxable income. Common deductions include:
- Exemptions for Dependents: Claiming exemptions for your dependents can significantly lower your taxable income.
- Retirement Income: Ohio provides deductions for certain types of retirement income, helping retirees reduce their tax burden.
- College Savings Account Contributions: Contributions to a qualified college savings account can be deducted, encouraging investment in education.
- Business Expenses: Business owners can deduct ordinary and necessary business expenses, reducing their taxable business income.
3.2. What Are Common Ohio Income Tax Credits?
Ohio offers various tax credits that can directly reduce your tax liability. Some notable credits include:
- Ohio Earned Income Tax Credit (EITC): This credit benefits low-to-moderate income working individuals and families.
- Adoption Tax Credit: Families who adopt a child may be eligible for this credit, helping to offset the costs of adoption.
- Historic Preservation Tax Credit: This credit encourages the rehabilitation of historic buildings.
3.3. How Does Tax Planning Help Reduce Ohio Income Tax?
Effective tax planning involves analyzing your financial situation and making strategic decisions to minimize your tax liability. This includes:
- Maximizing Deductions: Identify and claim all eligible deductions to reduce your taxable income.
- Utilizing Tax Credits: Take advantage of available tax credits to directly lower your tax bill.
- Timing Income and Expenses: Strategically time your income and expenses to optimize your tax outcome.
- **Investing in Tax-Adv
