Ohio income tax in 2026: new rates and what North Ohio taxpayers owe
Checked against the sources linked at the end on 2 October 2026. Written by ProTaxService in Brunswick, OH, for taxpayers across North Ohio. General information, not tax advice for your situation.
TL;DR: For tax year 2026, Ohio’s state income tax is $0 on the first $26,050 of taxable income and $332 plus 2.75% of everything above that. For 2025 there were two steps: 2.75% up to $100,000 and 3.125% above it. The state tax is the same in Brunswick, Akron or Cleveland. What changes from town to town is the city tax and, in some school districts, a school district income tax.
Most people hear “Ohio cut its income tax” and want one number: what do I owe? The honest answer has three layers. The state tax is one schedule that applies everywhere in Ohio. Your city adds its own income tax, set by your city or the agency it uses. And a minority of school districts add a third tax.
This guide covers the state layer first, because it changed. Then it shows how the other two layers stack on top, using cities from Brunswick to Cleveland as examples. Each figure links to the statute or the state page it came from.
What the income tax schedule looks like for 2026
Ohio’s 2026 tax is $0 on the first $26,050 of taxable income, then $332 plus 2.75% of the amount above $26,050. That is the text of Ohio Revised Code 5747.02(A)(3)(c) for tax years beginning in 2026 and after. It is often described as a “flat 2.75% tax”, which is close, but the first $26,050 is not taxed at all, so the tax you actually pay is a little lower than 2.75% of your whole income.
For 2025 the schedule had two steps above the zero bracket:
- $0 on income up to $26,050
- $342 plus 2.75% of the amount over $26,050, up to $100,000
- $2,394.32 plus 3.125% of the amount over $100,000
The Ohio Department of Taxation (ODT) says the highest rate for 2025 “has been reduced to 3.125%”. For 2026 that top step disappears. ODT’s own annual-rates page only runs through 2025 as of this writing, so the 2026 figures here come straight from the statute. The 2025 figures above are the ones in the statute and in ODT’s 2025 instructions: the $2,394.32 was carried over from the 2024 schedule, so the two steps do not meet exactly at $100,000.
Here is what the two schedules produce on Ohio taxable income. The amounts are before any credits (such as the retirement income credit) and before the business income deduction, and they are rounded to the dollar.
| Ohio taxable income | 2025 tax | 2026 tax | Difference |
|---|---|---|---|
| $20,000 | $0 | $0 | $0 |
| $50,000 | $1,001 | $991 | $10 less |
| $75,000 | $1,688 | $1,678 | $10 less |
| $150,000 | $3,957 | $3,741 | $216 less |
So the change is small in the middle and bigger at the top. A household at $50,000 of Ohio taxable income saves about $10. One at $150,000 saves a little over $200.
Where “taxable income” starts
Ohio starts from your federal adjusted gross income, and it has no standard deduction. ODT’s instructions say line 1 of your Ohio return “must match your federal adjusted gross income (AGI)”. From there you subtract items Ohio lets you subtract (for example, Social Security benefits) and a personal exemption.
The exemption depends on income. For tax year 2025, ODT’s booklet gives $2,400 per exemption when your modified AGI is $40,000 or less, $2,150 between $40,001 and $80,000, and $1,900 from $80,001 to $749,999. Above that the exemption is zero. For 2026 the statute lowers the top cutoff to $500,000. ODT has not published 2026 exemption amounts yet, so check its 2026 booklet before you rely on a number.
Two other pieces matter for self-employed people and landlords:
- The business income deduction. ODT says taxpayers can deduct the first $250,000 of business income ($125,000 if married filing separately). The rest is taxed at a flat 3%.
- Not all rental income is “business income”. ODT’s help pages say rents are generally nonbusiness income, but a landlord who actively runs a rental business may treat it as business income. That is a question for your preparer, not a default. Our guide to rental income taxes for landlords in North Ohio explains how the federal and city sides work.
The next dates to know
Ohio has no extension form of its own: an extended Ohio return is due with the extended federal return, on October 15. ODT says it “honors the IRS extension”, but an extension to file is not an extension to pay. Any balance is still due April 15.
Estimated payments for 2026 are due April 15, June 15 and September 15, 2026, and January 15, 2027. They are required if you expect to owe more than $500 after withholding. If you pay by check or money order, ODT’s coupon for estimated payments is the Ohio Universal Payment Coupon (OUPC). Our guide to Ohio estimated tax payments for 2026 puts the federal, state and city rules side by side.
If you pay quarterly because of freelance income, the same dates apply to the city. Our guide to city income tax for freelancers covers that side.
What the state did with the new federal deductions
Ohio follows the federal return up to your federal AGI, and the new federal tips and overtime deductions come after that line. Ohio’s Senate Bill 9, signed March 5, 2026, conforms Ohio to the Internal Revenue Code for tax year 2025, including the 2025 federal tax law. The Ohio Legislative Service Commission, the legislature’s own research agency, says the tips and overtime deductions are “below-the-line” and “do not flow through to Ohio taxable income.”
In plain terms, a worker who gets the federal tips or overtime deduction should not expect the same reduction on the Ohio return. We cover the federal rules in no tax on tips and overtime. ODT has not said anything specific about the federal senior and car-loan-interest deductions that we could find, so treat those as unconfirmed for Ohio.
One more trap: ODT announced new employer withholding tables effective August 1, 2026, because of the rate cuts in House Bill 96. Those tables are for payroll withholding. They are not your income tax rates, and your paycheck can change before your actual tax does.
The other two layers: city and school district tax
The state tax is identical across North Ohio. The city tax is not. Every Ohio city sets its own rate. Here is the 2026 city rate and who collects it for a handful of towns around Brunswick, with the tax on $60,000 of wages if you live and work in the same city:
| City | 2026 rate | Collected by | City tax on $60,000 |
|---|---|---|---|
| Medina | 1.25% | RITA | $750 |
| Strongsville | 2.0% | RITA | $1,200 |
| Brunswick | 2.0% | City of Brunswick | $1,200 |
| Elyria | 2.25% | RITA | $1,350 |
| Kent | 2.25% | RITA | $1,350 |
| Cleveland | 2.5% | CCA | $1,500 |
| Euclid | 2.85% | RITA | $1,710 |
Rates are from the Regional Income Tax Agency (RITA) and the Central Collection Agency (CCA) rate tables and the City of Brunswick’s income tax page, read in October 2026. If you work in a different city than you live in, credits come into play. We explain that in live in one city, work in another.
A few school districts also charge their own income tax, and it is filed with the state on the SD 100. Our list of school district income tax in North Ohio shows which districts around Brunswick, Cleveland and Akron do.
Frequently asked questions
Is the state income tax really flat in 2026?
Almost. There is a single 2.75% rate, but the first $26,050 of taxable income is not taxed, so your tax is $332 plus 2.75% of the amount above $26,050. Business income has its own treatment, with a deduction on the first $250,000 and 3% on the rest.
Did my 2025 state tax change?
Yes. The rate above $100,000 fell from 3.5% to 3.125%. Below $100,000 the rate stayed at 2.75%, but the fixed amount in that step fell from $360.69 to $342, which saves about $19.
Do I have to file a state return if I extended my federal one?
Yes, by the extended federal due date, October 15, if you have an Ohio filing requirement. Ohio accepts your federal extension and has no separate form. Pay any balance when you file if you have not already.
Does the city or the state tax come first?
They are separate taxes with separate returns. You file the Ohio return with ODT. You file the city return with your city or its collector. Many people owe both every year.
The short version
- 2026: $0 up to $26,050, then $332 plus 2.75% above that.
- 2025: $0 up to $26,050, 2.75% to $100,000, 3.125% above.
- Extended returns: due October 15; the tax is still due April 15.
- Next estimate: January 15, 2027, if you pay quarterly.
- Not the same as: your city tax and any school district tax.
Rates and rules change, and your facts matter. Confirm figures with ODT or bring your records to a preparer well before a deadline.
ProTaxService is a small practice in Brunswick, OH, run by Elena Rusakovich, an IRS-registered tax preparer (PTIN), working with individuals and small businesses across North Ohio. We prepare individual tax returns that bring the federal, Ohio and city returns together, for Brunswick and for the cities that use RITA, such as Medina and Strongsville. If you are not sure which layers apply to you, tell us what you need when you request a free estimate or call (440) 212-9613.
Sources
- Ohio Revised Code: 5747.02 rates (effective September 30, 2025), 5747.025 exemptions, 5747.01 definitions (effective March 5, 2026). Read 2 October 2026.
- Ohio Department of Taxation: 2025 IT 1040 booklet, What’s New, estimated payments, conformity updates and forms.
- Ohio Legislative Service Commission: S.B. 9 final analysis.
- RITA: 2026 tax rates table. CCA: 2026 tax rates. City of Brunswick: income tax.