Updated October 4, 2026. Quick answer: Yes. Ohio starts from federal adjusted gross income, and its definition of nonbusiness income lists “capital gains, interest, dividends and distributions, patent or copyright royalties”. For tax years beginning in 2026 the statute prints “$332.00 plus 2.75% of the amount in excess of $26,050”.
Selling your home? How the state taxes the profit, from its own tax documents: Does Ohio tax the profit from selling your home?.
The same question for dividends and interest: does Ohio tax dividends and interest.
How Ohio treats capital gains
| Item | What the documents say |
|---|---|
| Treatment | Taxed as nonbusiness income on the graduated schedule; no separate rate for gains |
| 2025 schedule | No tax up to $26,050, then 2.75% to $100,000 and 3.125% above $100,000 |
| 2026 schedule | A single rate: 2.75% of the amount above $26,050 |
A $50,000 long-term gain
For 2026, if your Ohio income after exemptions is already above $26,050, the whole gain is taxed at 2.75%, computed as $50,000 x 2.75% = $1,375.
What changes in 2026
For tax years beginning in 2026 the statute drops the 3.125% rate that applied above $100,000 in 2025.
Federal rules
The state’s treatment sits on top of the federal one. The IRS explains the federal tax on gains in Topic no. 409, Capital Gains and Losses and Publication 550, Investment Income and Expenses.
Related: whether Ohio taxes pensions, how Ohio taxes retirement income, the capital gains tax by state table, and the federal capital gains tax calculator.
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Answer againSources
- Ohio Revised Code Section 5747.02 (Levy of tax on individuals, estates, trusts): https://codes.ohio.gov/ohio-revised-code/section-5747.02
- Ohio Revised Code Section 5747.01 (Definitions: Ohio adjusted gross income, nonbusiness income): https://codes.ohio.gov/ohio-revised-code/section-5747.01
Sources: the primary documents linked above, read on October 4, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.