How Does Ohio Tax Retirement Income? 2026 Flat-Rate Rules

How Ohio taxes retirement income in 2026 (statute-cited)

What settling an estate costs in Ohio

Is Ohio a good state to retire in for taxes?

Ohio vs. its neighbors

Comparison tables scroll horizontally on smaller screens.

2026 edition · statute-cited · part of Clear Money Guide’s 51-state retirement tax series. This guide covers state taxes on retirement income and estate transfers; property and sales taxes vary by county and are outside its scope.

Updated July 24, 2026. Quick answer: 2026 is Ohio’s first true flat-tax year — HB 96 (signed June 30, 2025) completed the move to a 2.75% on income over $26,050 plus a fixed $332, with 0% at or below $26,050 (Ohio Rev. Code §5747.02). Guides still showing 2025’s two-bracket structure (2.75% and 3.125%) are out of date. Social Security is exempt; pensions, 401(k) and IRA withdrawals are taxable above the threshold, softened by small credits; and Ohio has no estate or inheritance tax.

Federal civil service pensions in Ohio: does Ohio tax federal pensions.

More Ohio IT 1040 and schedule lines, one by one: IT 1040 line 1, Credits line 4 and Credits line 5.

More on public pension systems, topic by topic: Ohio SERS reemployment after retirement, Ohio SERS disability benefits and Ohio SERS divorce and support orders.

More state retirement-income schedules, line by line: Ohio retirement income credit.

More on public pension systems, topic by topic: Ohio Police and Fire DROP.

Inherited an IRA? What the state’s own documents say about taxing those withdrawals: Ohio tax on inherited IRA withdrawals.

Hold a 403(b) or 457(b)? What the state’s own documents say about taxing those withdrawals: does Ohio tax 403(b) and 457(b) withdrawals.

Drawing a pension? Whether the state withholds tax from it, from its own documents: Ohio tax withholding on pension payments.

Before the tax question, the Ohio Highway Patrol Retirement System options, refund and rollover rules, from the system’s own handbook and the Revised Code: Ohio Highway Patrol Retirement System decisions.

Married, or planning for a spouse’s death? Whether the state is a community property state, from its own statutes: Is Ohio a community property state?.

Selling your home? How the state taxes the profit, from its own tax documents: Does Ohio tax the profit from selling your home?.

Before the tax question, the Cincinnati Retirement System options, refund and survivor rules, from the system’s own documents: Cincinnati Retirement System decisions.

Withdrawing from an IRA or 401(k)? Whether the state withholds tax from it, from its own documents: Ohio tax withholding on IRA and 401(k) withdrawals.

For a pension earned elsewhere or paid after you move: does Ohio tax out-of-state pensions.

For trust income specifically: does Ohio tax trust income.

Inheriting from, or planning for, someone in this state? Whether the state has an inheritance tax, from its own tax documents: Does Ohio have an inheritance tax?.

For dividends and interest specifically: does Ohio tax dividends and interest.

For annuity payments specifically: does Ohio tax annuity income.

Planning for what you leave behind? The state’s estate tax answer, from its own tax documents: Does Ohio have an estate tax?.

For military retired pay: does Ohio tax military retirement.

Saving for a child’s college? The state’s 529 break has its own page: Ohio 529 plan tax deduction.

For the sale of stocks, funds or real estate: does Ohio tax capital gains.

For 401(k) and IRA withdrawals specifically: does Ohio tax 401(k) and IRA withdrawals.

Before the tax question, the Ohio Police & Fire payment plans, DROP and refund rules: Ohio Police & Fire retirement decisions.

The state’s income tax schedule: the Ohio tax brackets for 2026.

Before the tax question, the SERS of Ohio payment plans, PLOP, refund and service credit rules: SERS of Ohio retirement decisions.

How Ohio taxes retirement income in 2026 (statute-cited)

Income tax rate	$332 plus 2.75% of income over $26,050; 0% at or below $26,050 (R.C. §5747.02 as amended by HB 96; first flat-rate year — 2025 still had a 3.125% bracket)
Social Security	Not taxed (deducted in computing Ohio AGI)
Pension / 401(k) / IRA	Taxable above the $26,050 zero bracket
Credits	Retirement-income credit up to $200 (R.C. §5747.055) + senior citizen credit $50/return at 65+ — both only when Ohio MAGI (less exemptions) is under $100,000
Military retirement	Fully deductible
Estate / inheritance tax	None (estate tax repealed 1/1/2013)

Worked example: a 65+ retiree with $60,000 of pension income and Social Security on top pays $332 plus 2.75% on the $33,950 above the zero bracket, about $1,266 before exemptions, trimmed toward ~$1,016 by the $200 retirement-income credit and $50 senior credit (both MAGI-gated under $100,000). Note the credit gate: once Ohio MAGI less exemptions reaches $100,000, both credits vanish.

What settling an estate costs in Ohio

No death taxes, but executor commissions are statutory (ORC §2113.35): 4% of the first $100,000, 3% of $100,000–$400,000, 2% above (personal property plus real property sold), plus 1% on the value of unsold real property and 1% on the value of non-probate property that would have been includable in the Ohio estate tax base had the decedent died on December 31, 2012 (joint and survivorship property excepted). Small estates skip administration entirely: release from administration at ≤$35,000 of assets — or ≤$100,000 when everything passes to the surviving spouse (ORC §2113.03), one of the more generous spousal shortcuts in the country. Context: probate cost by state · small-estate limits by state · will vs. trust calculator.

Is Ohio a good state to retire in for taxes?

Better than its reputation, and improving: the first $26,050 of income is simply untaxed, Social Security never counts, and the flat 2.75% above that is among the lowest rates of any income-taxing state — a $60,000-pension retiree keeps all but roughly $1,000 to $1,270. No tax at death and a $100,000 spousal probate shortcut round it out. The honest gap vs. Michigan or Pennsylvania: Ohio taxes retirement-account withdrawals from a low threshold while those neighbors exempt most of them — the comparison below shows the trade.

Ohio is one of 43 jurisdictions that do not tax Social Security at any income level in 2026. The other 8 exempt benefits only up to an income or age limit. Full rules and statutes: the 51-state table.

Ohio vs. its neighbors

State	Social Security	Pension / 401(k) / IRA	Estate tax	Inheritance tax
Ohio	Not taxed	Taxed at $332 plus 2.75% over $26,050; small credits	None (repealed 2013)	None
Michigan	Not taxed	Deductible up to ~$67,610/person (2026)	None	None
Pennsylvania	Not taxed	Not taxed (retirement-age distributions)	None	Yes — 0/4.5/12/15% by heir class
Indiana	Not taxed	Fully taxable (state + county)	None	None (repealed 2012)
Kentucky	Not taxed	Excluded up to $31,110/person; 3.5% above	None	Yes — Class B/C heirs (4–16%)

Comparison rows summarize general rules; see our 51-state retirement tax table for statute-cited detail.

Considering a Roth conversion? The converted amount is taxed as ordinary income in the year you convert, and Ohio may treat it differently from the retirement income above — see how all 51 jurisdictions tax Roth conversions.

Finding a financial advisor in Ohio

Per the SEC’s July 2026 Investment Adviser roster, Ohio has 391 SEC-registered advisory firms (#9 nationally) managing $1.09 trillion (#18 by AUM). Full breakdown: Ohio advisor statistics. Reviewing fee structures before or after a move: fee-drag calculator.

Thinking about moving?

Four taxes change when you move state in retirement, not one: income tax on withdrawals, state estate tax, state inheritance tax, and what probate costs your heirs. Corridor comparisons involving Ohio:

Leaving Ohio? See leaving Ohio in retirement.

Compare any two states with the retirement tax comparison tool, or browse all corridors at the relocation hub.

What probate costs in Ohio

Ohio uses a hybrid standard — a statutory ceiling or floor with reasonableness applied inside it — so the fee has a bound but not a fixed number. Its small-estate route of $35,000 does reach real property: R.C. § 2113.03 provides for the “transfer of real property pursuant to an order relieving an estate from administration”. Full detail with the governing statute, the court filing fee and the threshold: Ohio probate cost. To price a specific estate, use the probate cost calculator.

Cite or share this guide

Suggested citation: Clear Money Guide, “Ohio Retirement Taxes (2026 edition),” statute-cited; clearmoneyguide.com/ohio-retirement-taxes/. Free to cite with attribution and a link. Data verified July 23–24, 2026 against state statutes, session laws, and revenue-department guidance.

Figures verified against Ohio Rev. Code §§5747.02, 5747.055, 2113.35 and 2113.03 (codes.ohio.gov) on September 30, 2026; the HB 96 signing date, the Michigan, Pennsylvania, Indiana and Kentucky comparison rows, the SEC advisory-firm statistics and the estate-tax repeal date were not re-checked.

How Does Ohio Tax Retirement Income? 2026’s New Flat 2.75% Rate, the Credits, and Probate Costs

What this state guide covers