Updated for tax year 2025.
If you live or work in Ohio, you’ll likely need to file an Ohio state income tax return along with your federal return. Ohio uses a graduated income tax structure with a tax-free amount on the first portion of taxable nonbusiness income and higher rates on income above that threshold. Many school districts and municipalities in Ohio also levy local income taxes.
This guide explains Ohio’s 2025 income tax rates and brackets, how Ohio handles deductions, available exemptions and credits, and the updates for the current tax year. When you’re ready to file, TaxAct® automatically applies Ohio’s tax rules to help you accurately prepare your Ohio return alongside your federal return.
What is the Ohio state income tax?
Ohio state income tax is a tax on income earned by individuals. It is collected by the Ohio Department of Taxation and helps fund state services.
Ohio uses a graduated income tax structure for taxable nonbusiness income. For tax year 2025, the first $26,050 of taxable nonbusiness income is taxed at 0%, income from $26,051 to $100,000 is taxed at 2.75%, and income over $100,000 is taxed at 3.125%. Taxable business income is taxed at a flat 3% rate.
Ohio income tax rates and tax brackets
To estimate your Ohio tax bill or refund, it helps to understand the state’s income tax brackets. Here is a look at the income tax brackets for Ohio for tax year 2025:
| Ohio Taxable Nonbusiness Income | Tax Rate |
|---|---|
| Up to $26,050 | 0% |
| $26,051 – $100,000 | 2.75% |
| Over $100,000 | 3.125% |
Many school districts and municipalities in Ohio also levy an income tax, typically at flat rates that vary by jurisdiction. School district income tax rates are set locally and are not capped at a single statewide percentage.
If you need more information on how federal tax brackets work, you can use our tax bracket calculator for federal taxes. See the 2025 Ohio IT 1040 instructions for official state rate information.
Ohio standard deduction
Ohio does not offer a standard deduction like the federal return. Instead, Ohio reduces your Ohio income tax base through personal exemptions and various additions and deductions reported on the Ohio Schedule of Adjustments.
Ohio allows certain deductions on the Schedule of Adjustments that may differ from federal rules — for example, deductions for contributions to qualifying pregnancy resource centers, Ohio educator expenses, and other Ohio-specific adjustments. See the 2025 Ohio IT 1040 instructions for a full list of available adjustments.
Ohio exemptions
Taxpayers in Ohio can claim a personal exemption for themselves, their spouse, and each dependent. The exemption amount depends on your modified adjusted gross income (MAGI). The more income you earn, the smaller the personal exemption amount available. Lower-income workers qualify for a higher personal exemption amount.
For tax year 2025, Ohio personal exemption amounts by MAGI are:
| Modified Adjusted Gross Income (MAGI) | Exemption Amount (per exemption) |
|---|---|
| $40,000 or less | $2,400 |
| $40,001 – $80,000 | $2,150 |
| $80,001 – $749,999 | $1,900 |
| $750,000 or greater | $0 |
For example, only taxpayers with MAGI of $40,000 or less can claim the full $2,400 exemption amount per qualifying exemption. Dependents claimed on another taxpayer’s return are not eligible for an exemption on their own Ohio return. Learn more about Ohio personal exemptions in the Ohio IT 1040 instructions.
Ohio tax changes for 2025
For tax year 2025, the top Ohio tax rate applied to taxable nonbusiness income above $100,000 has been reduced to 3.125%.
Other 2025 changes include a new deduction for contributions to qualifying pregnancy resource centers made on or after September 30, 2025 and before January 1, 2026 (up to $750 per taxpayer, or $1,500 on a joint return when both spouses contribute), an increase in the Ohio educator expense deduction to $300 per qualifying educator, and a change to the home school expense credit to $250 per qualifying student rather than per return. See the 2025 Ohio IT 1040 instructions for details.
The 2025 Ohio IT 1040 return is due April 15, 2026. Ohio honors IRS filing extensions; the extended due date for calendar-year filers is October 15, 2026 when a qualifying federal extension applies. An extension to file does not extend the deadline for payment.
FAQs
The bottom line
Ohio has a graduated state income tax for 2025 with 0% on the first $26,050 of taxable nonbusiness income, 2.75% on income up to $100,000, and 3.125% on income above that amount. Knowing the brackets, personal exemption amounts, and available Schedule of Adjustments deductions can help you estimate what you may owe or get back.
When you’re ready to file, TaxAct can help you prepare your federal and Ohio returns in one place so you can file with confidence.
Already filed your taxes and waiting for your refund? Learn more about where your Ohio state tax refund is.
This article is for informational purposes only and not legal or financial advice.
All TaxAct offers, products and services are subject to applicable terms and conditions.
The OBBB is now also being referred to by lawmakers as the Working Families Tax Cut Act. You may see one or both names used here, but they refer to the same set of tax changes.
Citations
Ohio Department of Taxation. “2025 Ohio IT 1040 Instructions.” Accessed 28 July 2026.
Regional Income Tax Agency. “Municipal Tax Rates.” Accessed 28 July 2026.
TaxAct. “Working Families Tax Cuts Act: 2025 Tax Reform Explained.” TaxAct Blog.
TaxAct. “Where Is My Ohio Tax Refund?” TaxAct Blog, 12 Feb. 2026.
