Retired in North Ohio? Social Security, pensions and city income tax
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: Ohio does not tax Social Security benefits, and Ohio cities do not tax Social Security or pensions. Other retirement income, such as a pension or an IRA withdrawal, is taxed by the state, with a retirement income credit of up to $200 to soften it. The catch is paperwork: Brunswick, RITA, Akron and Cleveland’s collector all expect retirees to file something, and part-time work or rental income makes you taxable again. Federal tax on Social Security is a separate question.
Retirement changes your taxes without ending them. Some of the income you now receive is untaxed in Ohio, some is taxed, and a few city offices still want to hear from you every year or once, depending on the city. People get into trouble in the gap between “this income is not taxable” and “I do not have to file anything”.
This guide separates the three layers: Ohio, your city and the federal return. It uses Brunswick, Medina, Akron and Cleveland as examples, because the rules differ from one city office to the next.
What the state taxes and what it does not
Ohio does not tax Social Security. The Ohio Revised Code lets you deduct benefits under Title II of the Social Security Act from your Ohio income, and the Ohio instructions tell you to deduct the amount from line 6b of your federal return. Disability and survivor benefits get the same treatment. Tier 1 railroad retirement and military retired pay are also deductible.
Other retirement income is different. The Ohio Department of Taxation (ODT) says “retirement income included in federal adjusted gross income is subject to Ohio income tax.” That includes pension payments, most IRA and 401(k) withdrawals and annuities. Ohio starts from your federal adjusted gross income, so whatever the federal return counts, Ohio counts unless a specific deduction removes it.
Two credits reduce the Ohio tax on retirement income. For tax year 2025:
- Retirement income credit. Up to $200 per return, not refundable. It applies when your modified AGI less exemptions is under $100,000 and you received income “on account of retirement” that is in your Ohio AGI. Social Security does not count toward it.
- Senior citizen credit. $50 per return if you are 65 or older at the end of the year and the same income test is met. You cannot take it if you elect the lump-sum distribution credit.
The retirement income credit works on a ladder:
| Retirement income received | Credit |
|---|---|
| $500 or less | $0 |
| Over $500 to $1,500 | $25 |
| Over $1,500 to $3,000 | $50 |
| Over $3,000 to $5,000 | $80 |
| Over $5,000 to $8,000 | $130 |
| Over $8,000 | $200 |
On a joint return the credit is one per return, and both spouses’ retirement income counts toward the ladder. ODT’s 2026 booklet is not out yet, so these are the 2025 figures.
What your city does with retirement income
State law exempts Social Security, pensions and annuities from city income tax. Ohio Revised Code 718.01 lists “social security benefits, railroad retirement benefits, unemployment compensation, pensions, retirement benefit payments, payments from annuities” among the income a municipality cannot tax. A retiree with only that income owes no city tax.
Exempt does not mean invisible. Cities want to know why you stopped filing, and they differ on how:
- Brunswick. Every resident 18 or older files a return, regardless of income, with one exception: a person who has submitted proof of retirement to the city’s tax department and has no other taxable income. Brunswick’s own FAQ lists pensions and Social Security as non-taxable and net rental income as taxable. See our page on Brunswick, Ohio city income tax for the details.
- Medina and other RITA cities. The Regional Income Tax Agency says a retiree with no taxable income should file an exemption form the first year it applies, report a retirement date, and start filing again if taxable income begins. Our page on Medina city income tax covers Medina.
- Akron. Residents whose income is limited to Social Security, pension, interest and dividends file a one-time declaration of exemption. The city says to resume filing if you again receive taxable income.
- Cleveland. The city’s collector, CCA, asks people who have a filing obligation but no taxable income to file an exemption certificate. The certificate on its site is for a specific tax year, so ask whether you must renew it.
When in doubt, call the tax office for your city. If you skip the paperwork, the city can send a notice asking why no return was filed. Our guide to what to do when a tax letter arrives covers that.
What brings city tax back
Any income that is not a pension, annuity or Social Security can make you taxable again. The statute defines city taxable income broadly, including “all income, salaries, qualifying wages, commissions, and other compensation from whatever source.” Net profit reported on a federal Schedule C (self-employment), E (rental) or F (farm) is taxable too.
That means a retiree who:
- works part-time for wages,
- does consulting or freelance work, or
- owns a rental property
is no longer a “no taxable income” retiree. In Brunswick, that person loses the retiree exception. In RITA cities the person must file a regular return. Our guides to city income tax for freelancers and rental income taxes for landlords explain how those incomes are taxed.
The federal side: when Social Security becomes taxable
Federal tax on Social Security depends on your total income, not on the benefit alone. The IRS looks at half of your benefits plus all your other income, including tax-exempt interest. If that total is above $25,000 for a single filer ($32,000 for a married couple filing jointly), up to 50% of your benefits are taxable. Above $34,000 ($44,000 joint), up to 85% can be taxable. These thresholds are in IRS Publication 915.
For tax years 2025 through 2028 there is also a new federal deduction of $6,000 per person age 65 or older. It phases out at 6% of modified adjusted gross income above $75,000 ($150,000 on a joint return), and you need a Social Security number. ODT has not said whether it affects the Ohio return. Because Ohio starts from federal AGI, plan as though it does not reduce your Ohio tax until ODT says otherwise.
Frequently asked questions
Do I have to file a city return if I am retired?
It depends on the city. Brunswick expects a return unless you filed proof of retirement and have no other taxable income. RITA and Akron ask for an exemption filing. Ask your city, and tell it if your income changes.
Does the state tax my IRA withdrawals?
Generally yes. Ohio taxes retirement income that is in your federal AGI, then offers the retirement income credit of up to $200.
Is my pension taxed by my city?
No. State law exempts pensions from municipal income tax. Check whether your city wants an exemption form on file.
I work part-time. Does that change anything?
Yes. Wages and self-employment profit are taxable by your city. You can still keep your Social Security and pension out of the city tax, but you file a regular return.
The short version
- Social Security: not taxed by Ohio or by Ohio cities. Federal tax may apply above the income thresholds.
- Pensions and IRA withdrawals: taxed by Ohio, exempt from city tax.
- Ohio credits: up to $200 retirement income credit and a $50 senior credit, with an income test.
- City paperwork: ask your city whether it wants proof of retirement or an exemption form, and whether it must be renewed.
- Part-time work or rent: taxable by your city again.
Rules and rates change, and your facts matter. Confirm figures with your city’s tax office, or bring your records to a preparer.
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, including retirement income, with city returns for Brunswick and for the cities that use RITA, such as Medina and Strongsville, and we explain the notices that come with returns we prepared. For a free estimate, tell us what you need or call (440) 212-9613.
Sources
- Ohio Revised Code: 5747.01 Social Security deduction, 5747.055 retirement credit and 718.01 municipal income. Read 2 October 2026.
- Ohio Department of Taxation: retirement income FAQ and the 2025 IT 1040 booklet.
- City of Brunswick: income tax and frequently asked tax questions. RITA: who needs to file and FAQs. City of Akron: individual filers. City of Cleveland: tax filing announcement, March 16, 2026.
- IRS: Publication 915, Social Security income FAQ (reviewed 24 September 2026) and individual and worker provisions (reviewed 27 August 2026).