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 Guides still showing 2025’s two-bracket structure (2.75% and 3.125%) are out of date.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 rate | Flat 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 Security | Not taxed (deducted in computing Ohio AGI) |
| Pension / 401(k) / IRA | Taxable above the $26,050 zero bracket |
| Credits | Retirement-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 retirement | Fully deductible |
| Estate / inheritance tax | None (estate tax repealed 1/1/2013) |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.
Ohio vs. its neighbors
| State | Social Security | Pension / 401(k) / IRA | Estate tax | Inheritance tax |
|---|---|---|---|---|
| Ohio | Not taxed | Taxed at flat 2.75% over $26,050; small credits | None (repealed 2013) | None |
| Michigan | Not taxed | Deductible up to ~$67,610/person (2026) | None | None |
| Pennsylvania | Not taxed | Not taxed (retirement-age distributions) | None | Yes — 0/4.5/12/15% by heir class |
| Indiana | Not taxed | Fully taxable (state + county) | None | None (repealed 2012) |
| Kentucky | Not taxed | Excluded up to $31,110/person; 3.5% above | None | Yes — 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.
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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:
- Ohio to Florida retirement taxes
- Ohio to Georgia retirement taxes
- Ohio to North Carolina retirement taxes
- Ohio to South Carolina retirement taxes
- Ohio to Tennessee retirement taxes
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. Whether its small-estate route of $35,000 reaches real property is not clearly stated in the statute, so treat that as unresolved rather than permission. 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
- https://tax.ohio.gov/help-center/faqs/income-retirement-income
- https://www.plantemoran.com/explore-our-thinking/insight/2025/07/ohio-budget-bill-makes-significant-tax-changes-for-a-variety-of-taxpayers
- https://law.justia.com/codes/ohio/title-57/chapter-5747/section-5747-055/
- https://taxfoundation.org/data/all/state/estate-inheritance-taxes/
- https://codes.ohio.gov/ohio-revised-code/section-2113.35
- https://codes.ohio.gov/ohio-revised-code/section-2113.03
- https://codes.ohio.gov/ohio-revised-code/section-2113.031