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.
Federal civil service pensions in Ohio: does Ohio tax federal pensions.
More Ohio IT 1040 and schedule lines, one by one: Adjustments line 17, Adjustments line 26 and Adjustments line 32.
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.
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?.
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.
A pension earned in another state, or paid after a move, is covered here: does Ohio tax out-of-state pensions.
Trusts have their own page: 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?.
Dividends and interest have their own page: does Ohio tax dividends and interest.
Annuity payments have their own page: 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?.
Military retired pay has its own page: 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.
Selling stocks, funds or real estate has its own page: does Ohio tax capital gains.
Withdrawals from a 401(k) or IRA have their own page: does Ohio tax 401(k) and IRA withdrawals.
The Ohio Police & Fire payment plans and DROP, from the fund’s own guides: Ohio Police & Fire retirement decisions.
The state’s income tax schedule: the Ohio tax brackets for 2026.
The SERS of Ohio plans and PLOP, from the system’s own pages: SERS of Ohio retirement decisions.
More on Ohio: Ohio Probate Cost 2026.
Related state retirement tax guides: Does Ohio Tax Social Security? and Ohio to Arizona Retirement Taxes.
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.
The rule in the source’s own words. Ohio Revised Code, section 5747.055: “A credit shall be allowed against a taxpayer’s aggregate tax liability under section 5747.02 of the Revised Code for taxpayers who received retirement income” (source, read October 5, 2026). This page’s governing citation: Ohio Rev. Code 5747.055 (retirement income credit); Ohio Rev. Code 5747.01(A)(5) and (A)(23).
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. |
Optional next step
Want help with your retirement plan?
Request an adviser match to discuss how this fits your retirement withdrawals.
- No fee to request a match
- No obligation to hire
Expect questions about your situation, your name, email and phone, and phone verification by text. A match is not guaranteed.
The form is run by Kapitalwise, our advisor-matching partner. Kapitalwise sends your details to advisers who pay for the introduction, so expect calls and texts. Clear Money Guide is paid when you submit the form, whether or not you ever hire anyone. This is free to you and there is no obligation to hire anyone.
Opens here. Nothing loads and nothing reaches Kapitalwise until you press the button.
How our partner relationships workSocial 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.
Figures verified against Ohio Revised Code sections 5747.055 and 5747.01 (codes.ohio.gov) on September 30, 2026.
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.