Updated October 5, 2026. Quick answer: Yes. Ohio’s Revised Code defines retirement income to include “retirement benefits, annuities, or distributions that are made from or pursuant” to a pension, retirement or profit-sharing plan, and taxes it inside Ohio income. A retirement income credit of up to $200 per return is available when modified adjusted gross income less exemptions is under $100,000.
More state retirement-income schedules, line by line: Ohio retirement income credit.
How Ohio treats annuity income
| Item | What the documents say |
|---|---|
| Treatment | Taxed as Ohio income; no annuity exclusion, but a retirement income credit |
| 2025 rates | No tax up to $26,050; “$342 + 2.75% of excess over $26,050” up to $100,000, and 3.125% above $100,000 |
| Retirement income credit | “The maximum credit per return is $200.” The filer’s modified adjusted gross income less exemptions must be under $100,000 |
| Instructions line | IT 1040 line 11, “Pensions, Annuities and IRA Distributions” |
A $24,000 example
If your Ohio taxable income is already above $26,050 and below $100,000, $24,000 of annuity payments is taxed at 2.75%, computed as $24,000 x 2.75% = $660. The retirement income credit, at most $200, can then reduce the bill.
What changes in 2026
The 2025 rates page is the latest Ohio document read, and it prints no 2026 schedule.
Federal rules
The state’s treatment sits on top of the federal one. The IRS explains the federal side in Topic no. 410, Pensions and Annuities and Publication 575, Pension and Annuity Income.
Related: whether Ohio taxes pensions, how Ohio taxes retirement income, annuity income tax by state, how a surrendered annuity is taxed, and pension and annuity decisions.
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Answer againSources
- Ohio Revised Code Section 5747.055, Tax credit for retirement income (Ohio Legislative Service Commission): https://codes.ohio.gov/ohio-revised-code/section-5747.055
- 2025 IT 1040 / SD 100 Instructions (Ohio Department of Taxation): https://tax.ohio.gov/static/forms/ohio_individual/individual/2025/it1040-booklet.pdf
- Ohio Individual Income Tax Rates (Ohio Department of Taxation): https://tax.ohio.gov/individual/resources/annual-tax-rates
Sources: the primary documents linked above, read on October 5, 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.