Updated October 2, 2026. Quick answer: For taxable years beginning in 2026 Ohio levies no tax on a balance of $26,050 or less. Above $26,050 the tax is $332.00 plus 2.75% of the amount in excess of $26,050, according to Ohio Revised Code 5747.02. The earlier schedules had a higher second bracket, which the 2026 text no longer has.
More Ohio IT 1040 and schedule lines, one by one: IT 1040 line 1, Adjustments line 15 and Adjustments line 16.
The 2026 schedule
| Ohio income subject to the rate | 2026 tax |
|---|---|
| $26,050 or less | No tax |
| More than $26,050 | $332.00 plus 2.75% of the amount in excess of $26,050 |
Division (A)(3) of the section says “If the balance thus obtained is equal to or less than twenty-six thousand fifty dollars, no tax shall be imposed on that balance.” For taxable years beginning in 2026 and after it provides “$332.00 plus 2.75% of the amount in excess of $26,050”. The balance is Ohio adjusted gross income, less taxable business income and less the exemptions in Revised Code 5747.025.
How 2026 compares with 2024 and 2025
| Tax year | Middle bracket | Top bracket |
|---|---|---|
| 2024 | $360.69 plus 2.75% over $26,050 up to $100,000 | $2,394.32 plus 3.5% over $100,000 |
| 2025 | $342.00 plus 2.75% over $26,050 up to $100,000 | $2,394.32 plus 3.125% over $100,000 |
| 2026 and after | $332.00 plus 2.75% over $26,050 | No separate higher bracket |
The section prints all three schedules. For 2026 it has a single bracket above $26,050, so the 3.5% and 3.125% top rates of the earlier years do not appear in the 2026 line.
A worked example
As a computed example (an illustration, not a source figure), take $80,000 of Ohio income subject to the rate in 2026. The tax is $332.00 plus 2.75% of the $53,950 above $26,050, which is $1,815.63 (computed, rounded to the cent). Income of exactly $26,050 or less owes nothing.
What the statute text also says
The same division taxes taxable business income separately and sets a rule for estates, which this page does not cover. For how Ohio treats retirement income, read the Ohio retirement taxes page. The statute was read on October 2, 2026.
Common mistakes
- Applying the 2025 top rate of 3.125% to 2026 income above $100,000. The 2026 text has no such bracket.
- Taxing the first $26,050. A balance at or below it owes no tax.
- Applying 2.75% to all income instead of only the excess over $26,050.
- Starting from gross income rather than Ohio adjusted gross income less business income and exemptions.
Related: how Ohio taxes retirement income, whether Ohio taxes pensions, whether Ohio taxes Social Security, and the federal 2026 tax brackets.
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Sources
- Ohio Revised Code 5747.02, rate of tax: https://codes.ohio.gov/ohio-revised-code/section-5747.02
- Ohio Revised Code chapter 5747, income tax (where later updates appear; no figure on this page comes from it): https://codes.ohio.gov/ohio-revised-code/chapter-5747
Sources: the primary documents linked above, read on October 2, 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.