Skip to content
Independent money guidance
Clear Money Guide
Start here
Menu

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

Clear Money Guide

What this state guide covers

A quick view of the questions, practical details and source notes below.

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 flat 2.75% on income over $26,050, with 0% below (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 Guides still showing 2025’s two-bracket structure (2.75% and 3.125%) are out of date.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.

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

Income tax rateFlat 2.75% on income over $26,050; 0% below (R.C. §5747.02 as amended by HB 96; first flat-rate year — 2025 still had a 3.125% bracket)
Social SecurityNot taxed (deducted in computing Ohio AGI)
Pension / 401(k) / IRATaxable above the $26,050 zero bracket
CreditsRetirement-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 retirementFully deductible
Estate / inheritance taxNone (estate tax repealed 1/1/2013)

Worked example: a 65+ retiree with $60,000 of pension income and Social Security on top pays 2.75% on the $33,950 above the zero bracket — about $934, trimmed toward ~$684 by the $200 retirement-income credit and $50 senior credit (both MAGI-gated under $100,000). Note the credit gate: at $100,000+ of Ohio MAGI, 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 unsold real estate. 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 ~$700–$950. 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.

Does Ohio tax Social Security? All 51 jurisdictions, 202643 do not tax Social Security at any income level. 8 tax it only above an income or age limit. Ohio is in the first group.Does Ohio tax Social Security? All 51jurisdictions, 202643 do not tax Social Security at any incomelevel. 8 tax it only above an income or agelimit.Ohio is in the first group.Not taxed at any income (43)Taxed only above a limit (8)ALAKAZARCACOCTDEDCFLGAHIIDILINIAKSKYLAMEMDMAMIMNMSMOMTNENVNHNJNMNYNCNDOHOKORPARISCSDTNTXUTVTVAWAWVWIWYPostal abbreviations, alphabetical. TheDistrict of Columbia is counted as ajurisdiction, which is why the total is 51 andnot 50.Counted from Clear Money Guide’s 2026 51-jurisdictionretirement-tax table, where every row carries its statutecitation. Table read 2026-08-17.
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

StateSocial SecurityPension / 401(k) / IRAEstate taxInheritance tax
OhioNot taxedTaxed at flat 2.75% over $26,050; small creditsNone (repealed 2013)None
MichiganNot taxedDeductible up to ~$67,610/person (2026)NoneNone
PennsylvaniaNot taxedNot taxed (retirement-age distributions)NoneYes — 0/4.5/12/15% by heir class
IndianaNot taxedFully taxable (state + county)NoneNone (repealed 2012)
KentuckyNot taxedExcluded up to $31,110/person; 3.5% aboveNoneYes — 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.

Primary sources

Next step