Updated September 5, 2026. Quick answer: Ohio taxes essentially all pension, annuity, and retirement account income, public, private, and federal civilian alike, as ordinary income, offset only by a small nonrefundable Retirement Income Credit worth at most $200 a year. The one real exception is military retirement pay, which is fully deductible.
Confidence note: high. This page is scoped to pension, IRA and 401(k) taxation specifically. For the state’s full retirement-tax picture (Social Security, tax rates, estate and probate), see how Ohio taxes retirement income generally.
How pensions and retirement-account withdrawals are taxed
| Public (state/local government) pensions | Public pensions such as OPERS and STRS benefits are included in Ohio taxable income as ordinary income. Recipients can claim the Retirement Income Credit under Ohio Revised Code 5747.055, a tiered credit that tops out at $200 per year for taxpayers with modified adjusted gross income under $100,000, or the Lump Sum Retirement Credit if the benefit was taken as a single lump sum. |
|---|---|
| Private (employer) pensions | Private employer pensions and annuities are taxed as ordinary Ohio income and are eligible for the same Retirement Income Credit table, or the Lump Sum Retirement Credit if applicable, as public pensions. |
| Federal government pensions (FERS/CSRS) | Federal civil service retirement (CSRS or FERS) is taxed as ordinary income like other pensions. If the retiree also has uniformed service credit, only the portion of the CSRS or FERS benefit attributable to that uniformed service qualifies for the separate military retired pay deduction, the remainder is fully taxable and eligible only for the general Retirement Income Credit. |
| Military retirement pay | Retired military pay, including Survivor Benefit Plan payments to a surviving spouse or former spouse, is fully deductible from Ohio adjusted gross income under Ohio Revised Code 5747.01(A)(23), amounting to a full state exemption for that income. |
| IRA and 401(k)/403(b) distributions | IRA and 401k or 403b distributions are taxed as ordinary income and are eligible for the same Retirement Income Credit table, or the Lump Sum Retirement Credit for a qualifying lump sum distribution, as other pension income. |
| General retirement-income exclusion | There is no broad age based exclusion. Ohio Revised Code 5747.055 provides the tiered Retirement Income Credit (maximum $200 per year, income under $100,000), a separate $50 credit for filers 65 or older with income under $100,000, and lump sum equivalents of both, and that is the extent of the general relief. |
Coordinate this with your overall retirement plan
An adviser can help weigh how much of a pension or IRA withdrawal to take this year, whether a Roth conversion makes sense before or after a move, and how state tax interacts with the rest of your plan, but that does not replace the numbers in your own return.
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Social Security
Ohio fully deducts Social Security Title II benefits and tier 1 railroad retirement benefits from Ohio adjusted gross income under Ohio Revised Code 5747.01(A)(5), so they are not taxed; see the sibling page for details. Social Security has its own rules in every state; see the full breakdown in how Ohio taxes retirement income generally.
Statute and sources
Governing citation: Ohio Rev. Code 5747.055 (retirement income credit); Ohio Rev. Code 5747.01(A)(5) and (A)(23).
- Ohio Laws, Ohio Revised Code 5747.055, Tax Credit for Retirement Income
- Ohio Laws, Ohio Revised Code 5747.01, income tax definitions and deductions
Read September 5, 2026.
Related: how Ohio taxes retirement income generally · does Ohio tax Roth conversions? · Roth conversion taxes, all 51 jurisdictions.
General information drawn from each state’s own published statutes and revenue-department guidance, not legal, tax or financial advice. Figures and exemption amounts are current as of the date in the quick answer, are set by state law, and can change by future legislation; any pending bill named on this page is not yet law. This page cannot see your own return, which governs. We are not a law firm, a tax adviser, or a fiduciary, and this is not personalized advice.