Ohio exempts the first $26,050 of income entirely, then taxes the rest at a flat 2.75%, giving it one of the lowest state income taxes in the country, on paper.
The asterisk is local tax: Ohio's cities and school districts lean heavily on their own income taxes, which can easily exceed what you pay the state. Here is how the two layers stack up. See your exact take-home with the free Ohio paycheck calculator.
How Ohio's income tax works
Ohio's state income tax has effectively become a two-tier system: 0% on income up to $26,050, and a flat 2.75% above that for 2026 (the former 3.5% top bracket has been phased out). Ohio uses the same brackets for every filing status, so single and married filers face the same state rate.
Because the first $26,050 is untaxed, Ohio's effective state rate on a middle income is low. A $65,000 earner only pays 2.75% on about $38,950 of income.
| Taxable income | Rate |
|---|---|
| $0 – $26,050 | 0% |
| Over $26,050 | 2.75% |
Your take-home on a $65,000 salary in Ohio
Here is how a $65,000 salary breaks down for a single filer, using 2025 federal and FICA figures alongside Ohio's 0% on the first $26,050, then a flat 2.75%.
| Item | Annual |
|---|---|
| Federal income tax | $5,246 |
| FICA (Social Security + Medicare) | $4,973 |
| Ohio income tax | $1,071 |
| Take-home pay | $53,711 |
| Percent of gross kept | 82.6% |
On a $65,000 salary a single filer owes only about $1,071 in Ohio state income tax and keeps roughly $53,711 (82.6% of gross), before local taxes. Compare with Michigan.
Local city and school-district taxes do the heavy lifting
Ohio is famous for municipal income taxes. Most cities tax wages at roughly 1.5% to 3% where you work (and sometimes where you live), and many school districts add their own income tax. For a lot of Ohioans the local bill is larger than the state bill.
That means the low 2.75% state rate is only part of the story. Always check your city and school-district rates to know your true take-home.
How to keep more of your Ohio paycheck
Traditional 401(k) and HSA contributions reduce your Ohio taxable income as well as your federal income, and an HSA also avoids FICA, so they lower all three layers at once.