Ohio State Income Tax Withholding
Last Updated: January 2026
Overview
Ohio transitioned to a flat tax system effective January 1, 2026. Previously, Ohio used a progressive tax structure with multiple brackets. This major change simplifies withholding calculations for employers.
2026 Tax Rate
| Income Level | Tax Rate |
|---|---|
| First $26,050 | 0% |
| Over $26,050 | 2.75% |
Note: This is a significant change from the previous progressive system. Employers should update their payroll systems to reflect the new flat rate structure.
Supplemental Wage Rate
- Supplemental wages: 3.5%
Use this rate for bonuses, commissions, and other supplemental payments.
Deductions and Exemptions
Ohio uses its own exemption system:
- Personal Exemption: $2,400 per exemption claimed
- Dependent Exemption: $2,400 per dependent
Local Income Taxes
IMPORTANT: Ohio has one of the most extensive local income tax systems in the United States.
- Over 600 municipalities levy local income taxes
- Rates range from 0.5% to 3%
- Major cities with local taxes include:
- Cleveland: 2.5%
- Columbus: 2.5%
- Cincinnati: 1.80%
- Toledo: 2.5%
- Akron: 2.5%
Employers must withhold local taxes for municipalities where employees work or reside.
Special Considerations
- Form IT 4: Ohio requires employees to complete Form IT 4 for state withholding
- School District Taxes: Some school districts levy additional income taxes (0.5% to 2%)
- Reciprocal Agreements: Ohio has reciprocal agreements with Indiana, Kentucky, Michigan, Pennsylvania, and West Virginia