Ohio Tax Calculator 2026: HB 96 Flat Tax + Take-Home Pay

Ohio's new 2.75% flat income tax took effect January 1, 2026. Calculate your 2026 take-home pay including federal brackets, Ohio state tax, all major city local rates, and FICA — with verified primary-source data and links to 24 Ohio city salary breakdowns.

Built by Abiot Y. Derbie, PhD — Postdoctoral Research Fellow. Reviewed by Dr. Eskezeia Y. Dessie (Indiana University School of Medicine) and Armin Allahverdy, PhD (data science, statistical modeling). Primary sources cited: Ohio Department of Taxation · Ohio Revised Code § 5747.02 (as amended by HB 96) · LSC HB 96 Bill Analysis · IRS Rev. Proc. 2025-32 · Tax Foundation 2026 · Policy Matters Ohio. Last updated May 18, 2026.

Direct Answer

What is Ohio's income tax in 2026?

Effective January 1, 2026, Ohio has a flat 2.75% income tax on nonbusiness income above $26,050. Income up to $26,050 is taxed at 0%. This took effect under House Bill 96, the FY 2026-2027 state operating budget signed by Governor Mike DeWine on June 30, 2025. Ohio is now the second-lowest flat-tax state in America — only Arizona (2.5%) is lower, and Ohio beats Indiana (2.95%), Pennsylvania (3.07%), and Michigan (4.25%).

What changed: in 2025, Ohio had two brackets — 2.75% on income $26,051–$100,000 and 3.125% on income above $100,000. HB 96 eliminated the upper bracket for 2026 and beyond. Everyone above $26,050 now pays the same 2.75% rate. Business income (sole proprietorships, partnerships, S-corp shareholders, LLC members) is taxed separately at a flat 3% after the first $250,000 deduction — unchanged by HB 96. Ohio cities still levy their own local income taxes (1.8% to 3% depending on city), and most of the state's 600+ municipalities continue separate withholding systems.

2026 Tax Tables

The complete 2026 Ohio tax picture: federal + state + city

Ohio's total tax burden has three layers: federal income tax, Ohio's new 2.75% flat state tax, and your city's local income tax. Each one applies to a different definition of "income" — so understanding all three is the only way to estimate take-home pay accurately. These tables use primary-source data verified against the IRS, the Ohio Department of Taxation, and the City of Cincinnati Finance Department.

2026 Federal Income Tax Brackets (IRS Rev. Proc. 2025-32)

Bracket	Single Filer	Married Filing Jointly
10%	$0 – $12,400	$0 – $24,800
12%	$12,401 – $50,400	$24,801 – $100,800
22%	$50,401 – $105,700	$100,801 – $211,400
24%	$105,701 – $201,775	$211,401 – $403,550
32%	$201,776 – $256,225	$403,551 – $512,450
35%	$256,226 – $640,600	$512,451 – $768,700
37%	$640,601+	$768,701+

2026 federal standard deductions: $16,100 single · $32,200 married filing jointly · $24,150 head of household.

2026 Ohio Income Tax Structure (HB 96, effective Jan 1, 2026)

Bracket	Rate	Applies To
$0 – $26,050	0%	All nonbusiness income
$26,051+	2.75% flat	Wages, salaries, interest, dividends, capital gains
Business income (any amount)	3% flat after $250,000 deduction	Sole prop, partnership, S-corp, LLC income

Major Ohio City Local Income Tax Rates (2026)

City	Local Rate	School District Income Tax (SDIT)	Combined (state + city)
Columbus	2.5%	2.5% (Columbus CSD)	5.25% above $26,050
Cleveland	2.5%	1.75% (Cleveland Municipal SD)	5.25% above $26,050
Cincinnati	1.8% (lowest of majors)	None currently	4.55% above $26,050
Toledo	2.25%	Varies by district	5.00% above $26,050
Akron	2.5%	Varies by district	5.25% above $26,050
Dayton	2.5%	Varies by district	5.25% above $26,050
Parma	3.0% (highest in state)	Varies	5.75% above $26,050
Dublin (Columbus suburb)	2.0%	Varies	4.75% above $26,050
Westerville (Columbus suburb)	2.0%	Varies	4.75% above $26,050
Unincorporated areas	0%	Varies (200+ districts)	2.75% above $26,050

Local rates apply to gross wages, not Ohio taxable income. Cincinnati's 1.8% rate has been stable since October 2020 (previously 2.1%). Verified against the City of Cincinnati Finance Department.

2026 FICA (Federal Insurance Contributions Act)

Component	Rate	Wage Base / Threshold
Social Security (employee share)	6.2%	Wages up to $184,500
Medicare (employee share)	1.45%	No wage cap
Additional Medicare	0.9%	Wages above $200,000 single / $250,000 MFJ

Sources: Ohio Department of Taxation · Ohio Revised Code § 5747.02 (as amended by HB 96) · IRS Rev. Proc. 2025-32 · City of Cincinnati Finance · Tax Foundation.

Estimate Your Ohio Take-Home Pay

Enter your salary, filing status, and city. The calculator applies 2026 federal brackets, Ohio's new 2.75% flat tax, your city's local rate, and FICA to compute take-home pay. Defaults to Columbus at the Ohio median household income.

Your Ohio Take-Home

Click "Calculate Take-Home Pay" above to see your personalized 2026 Ohio breakdown — federal, state, city, FICA, and net pay with monthly and biweekly figures.

2026 Ohio take-home pay across common salary levels

These figures show estimated take-home pay for a single filer in Columbus (2.5% city tax). Higher-tax cities like Parma reduce these amounts by ~$500/year per $100K; lower-tax cities like Cincinnati increase them by ~$700/year per $100K. Married filing jointly increases take-home by roughly 3-8% depending on bracket.

Gross Salary	Federal Tax	Ohio State (2.75% flat)	Columbus 2.5% Local	FICA (7.65%)	Annual Take-Home
$40,000	$2,612	$383	$1,000	$3,060	$32,945 (82.4%)
$50,000	$3,832	$658	$1,250	$3,825	$40,435 (80.9%)
$60,000	$5,052	$933	$1,500	$4,590	$47,925 (79.9%)
$75,000	$7,694	$1,346	$1,875	$5,738	$58,347 (77.8%)
$100,000	$13,194	$2,034	$2,500	$7,650	$74,622 (74.6%)
$125,000	$18,694	$2,721	$3,125	$9,563	$90,897 (72.7%)
$150,000	$24,734	$3,409	$3,750	$11,475	$106,632 (71.1%)
$200,000	$36,734	$4,784	$5,000	$14,339	$139,143 (69.6%)

Calculations assume standard deduction (no itemizing), no pre-tax 401(k) or HSA contributions, and 0% additional withholding. Real take-home will be higher if you contribute to a traditional 401(k), HSA, or HDHP. Federal tax uses 2026 IRS brackets and $16,100 standard deduction for single filers. Ohio state tax uses HB 96's $26,050 zero-bracket and 2.75% flat rate. FICA uses 6.2% Social Security (capped at $184,500 in 2026 per SSA) plus 1.45% Medicare (no cap).

The Ohio tax decision matrix: what to do based on your situation

Ohio's 2026 tax landscape creates different optimal moves depending on your residency, employer location, income type, and life stage. Match your situation to the right first move.

Live in Ohio, work in Indiana/KY/MI/PA/WV

Use reciprocity. Ohio has reciprocal agreements with five neighboring states. File only your Ohio resident return — your work state will not withhold. Caveat: reciprocity does NOT apply to local Ohio city taxes. If you work in Cincinnati but live in Indiana, you still owe Cincinnati's 1.8% city tax on Cincinnati-sourced wages.

Live in Cleveland, work in Columbus

You typically pay the work city. Columbus's 2.5% rate is withheld from your paycheck. Cleveland (also 2.5%) gives you 100% credit for taxes paid to Columbus — so you owe nothing additional to Cleveland. If your home city's rate exceeds 2.5%, you owe the difference. Verify with both city tax offices to confirm credit treatment.

Remote worker, Ohio resident

Resident city taxes you on total income. If you live in Columbus and work remotely for a non-Ohio employer, Columbus generally taxes your wages at 2.5%. There may be no withholding by your employer, so you'll owe Columbus tax as estimated quarterly payments. Some Ohio cities allow a "20-day rule" exception for occasional in-person work elsewhere.

Self-employed / Pass-through business owner

HB 96 did NOT change business income tax. Your first $250,000 of qualifying business income gets the Ohio Business Income Deduction (effectively tax-free at the state level), and amounts above $250,000 are taxed at 3% flat. This is independent of the 2.75% nonbusiness flat rate. Plus you owe self-employment tax (15.3% combined Social Security + Medicare) federally.

Retired in Ohio

Social Security is fully exempt from Ohio income tax. Pensions, 401(k) withdrawals, and IRA distributions are taxable at 2.75% flat. Ohio offers a $200 retirement income credit for filers age 65+ — small compared to Florida or Texas (no state income tax) or Illinois/Pennsylvania (no tax on retirement income). For high-income retirees, consider whether the cost-of-living + Ohio's 2.75% beats neighboring options.

Earning above $500,000 MAGI

You lose Ohio exemptions. Under HB 96, MAGI above $500,000 disqualifies you from personal, spousal, and dependent exemptions, plus the joint-filing credit. This affects roughly the top 2-3% of Ohio earners and effectively raises your marginal Ohio rate slightly. Consult a CPA — strategic timing of capital gains realization may keep you below threshold in some years.

Three small moves that change your Ohio tax bill

Ohio's flat tax simplifies a lot — but three specific moves still have meaningful dollar impact for the average Ohio worker. Each requires under an hour of effort.

Max out pre-tax 401(k) and HSA contributions to reduce federal AND Ohio taxable income. Every dollar contributed to a traditional 401(k) reduces federal taxable income (saving 22-32%) AND Ohio taxable income (saving 2.75%). The 2026 401(k) limit is $23,500 ($31,000 if age 50+); HSA limits are $4,300 single / $8,550 family.
Impact: maxing 401(k) alone saves ~$646 in Ohio tax annually (at $23,500 × 2.75%) plus federal savings of $5,000-$8,500.
Compare living in city vs unincorporated/suburb to gauge real local tax savings. Moving from Columbus (2.5%) to a Franklin County unincorporated area (0% local tax) saves 2.5% of your gross wages annually. At $75,000 salary, that's $1,875/year saved on local tax. Suburbs like Westerville (2.0%) split the difference at $375/year savings.
Impact: at $100,000 income, the local-tax delta between Columbus (2.5%) and unincorporated Franklin County (0%) is $2,500/year — same as a 4% raise in net pay.
Claim the Ohio retirement income credit and senior credit if eligible. Ohio offers up to $200 retirement income credit for filers age 65+ with retirement income. Also claim the $50 senior credit if your modified adjusted gross income is below $100,000. Both are non-refundable but still worth filing.
Impact: $250 in combined credits = roughly 1 month of an average Ohio retiree's grocery bill. Easy form to fill out at Ohio IT 1040 line 9.

How much will HB 96 actually save you? The honest math

The political messaging around HB 96 frames it as historic tax relief. The reality is more nuanced — and depends almost entirely on income level. These figures use ITEP and Policy Matters Ohio data.

$459

Median Ohio household annual savings from the flat tax (per ITEP/Policy Matters Ohio analysis). For a typical $60,000-$80,000 household, the change is modest because that income was already taxed at 2.75% in 2025. The eliminated 3.125% bracket only applied above $100,000.

$68,000

Top 1% annual savings from the flat tax. Households with $1M+ AGI see the largest absolute and percentage benefit because they had the most income previously taxed at the eliminated 3.125% top bracket. Critics call this distribution lopsided; supporters call it competitive with no-income-tax states.

Bottom 20% annual savings. Households below approximately $26,050 in taxable income already paid 0% Ohio state tax — the flat tax doesn't affect them. The $26,050 zero-bracket threshold is frozen (not indexed for inflation), so bracket creep will gradually pull more low-income households into the 2.75% bracket over time.

10-year compounding view: if you save $459/year (median household) and invest it at 7% real return, after 10 years you have about $6,640. After 20 years: $20,070. After 30 years: $46,860. Not transformative — but real money that compounds. For top-1% households saving $68K/year, the 30-year compounded amount exceeds $7.6 million in 2026 dollars. Fiscal cost to Ohio: $486.2M in FY 2026 and $1.03B in FY 2027 in lost state revenue, partially offset by federal Tax Cuts and Jobs Act (TCJA) extension provisions.

Sources: Policy Matters Ohio: The Great Ohio Tax Shift, 2026 · ITEP September 2025 analysis · Ohio Department of Taxation and Ohio Office of Budget and Management, "Impact of House Bill 96 (FY 2026-2027 state operating budget): As Enacted, After Vetoes" (July 29, 2025).

The daily cost of Ohio's city tax: Cleveland vs Cincinnati

Where you live in Ohio matters a lot more than the state-level change. Ohio's city tax variation creates a real per-day cost difference across the major metros.

$1.92

Daily city-tax cost at $75,000 salary, Cleveland resident (2.5% × $75,000 ÷ 365 = $5.14 per day). Compare to Cincinnati at the same salary: $3.70/day (1.8% × $75,000 ÷ 365). Annual savings of $525 just by living in Cincinnati instead of Cleveland at the same salary level.

$1,750

Annual difference between Parma (3% — highest in state) and Cincinnati (1.8% — lowest of majors) at $150,000 salary. That's a full month's worth of property tax for many Ohio homeowners. Moving to a 0% local-tax suburb like a Franklin County unincorporated township saves another $2,700/year on top.

The bigger pattern: Ohio's state-level change is modest for middle earners ($0-$50/year saved), but city choice creates orders-of-magnitude larger swings. If you're flexible on where you live in Ohio and your job allows remote work or short commutes, the local-tax decision is worth significant attention. Use our Cost of Living Calculator to compare specific Ohio cities including housing costs alongside tax burdens.

Run your Ohio numbers: city-by-salary calculators

Direct links to detailed take-home pay breakdowns for 24 combinations of city and salary level. Each page includes the federal-state-city-FICA breakdown at your specific income, plus cost-of-living context and a savings recommendation. Columbus, Cincinnati, and Dayton are fully built; Cleveland, Toledo, and Akron salary pages are scheduled for future expansion.

Columbus, Ohio (2.5% local tax) — 8 salary levels

Columbus

$40k salary