Retiring in Ohio: how your income is taxed
Ohio is fairly tax-friendly for retirees. On a typical retirement income it ranks #26 of 51 for the lowest state income tax.
The rules in Ohio
- Social Security: Social Security and Railroad Retirement benefits are fully deducted on the Ohio Schedule of Adjustments, at any income level.
- Pensions: Pensions are taxed, but a nonrefundable retirement income credit of up to $200 per return applies when modified AGI minus exemptions is under $100,000 (Ohio Rev. Code 5747.055). A one-time lump-sum retirement credit can be chosen instead. It is a credit, not an exclusion. Government pensions are treated the same way, except uniformed-services retirement pay, which is deducted.
- 401(k), 403(b) and IRA withdrawals: 401(k) and IRA withdrawals are taxed but count toward the same retirement income credit of up to $200 per return (modified AGI under $100,000).
- At 65 and older: Filers 65 or older get a $50 senior citizen credit per return when Ohio modified AGI less exemptions is under $100,000.
Calculate your Ohio retirement taxes
State income tax in Ohio: $268 a year
In Ohio, the 401(k)/IRA amount counts as IRA withdrawals, which don't qualify for the pension exclusion. Enter withdrawals from employer plans such as a 401(k) or 403(b) as pension.
In Ohio you'd pay about $268 in state income tax and $4,336 in federal income tax on $70,000 of retirement income, keeping $65,396 (6.6% total).
Ohio ranks #26 of 51 for the lowest state tax on this income. 19 states charge no state income tax on this income.
What retirees pay in Ohio
| Retirement income | State tax (single) | State tax (married) | Federal tax (single) |
|---|---|---|---|
| $24,000 Social Security, $12,000 401(k)/IRA | $0 | $0 | $0 |
| $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA | $268 | $202 | $4,336 |
| $40,000 Social Security, $40,000 pension, $50,000 401(k)/IRA, $10,000 other income | $1,981 | $1,929 | $19,812 |
Age 67 or older, 2026 rules including the federal senior deduction. For married couples, income is the household total and both spouses are 67 or older. State estimates apply Ohio's main exclusions and may differ for income-tested credits.
States with lower retirement taxes
Moving to Ohio in retirement?
Compare the tax on your Social Security, pension and 401(k)/IRA income, and typical living costs, with the state you'd leave. These are the states most households moving to Ohio come from (IRS migration data, 2022–2023).
Frequently asked questions
Does Ohio tax Social Security?
Not taxed. Social Security and Railroad Retirement benefits are fully deducted on the Ohio Schedule of Adjustments, at any income level.
Does Ohio tax pensions?
Partly taxed. Pensions are taxed, but a nonrefundable retirement income credit of up to $200 per return applies when modified AGI minus exemptions is under $100,000 (Ohio Rev. Code 5747.055). A one-time lump-sum retirement credit can be chosen instead. It is a credit, not an exclusion. Government pensions are treated the same way, except uniformed-services retirement pay, which is deducted.
Does Ohio tax 401(k) and IRA withdrawals?
Partly taxed. 401(k) and IRA withdrawals are taxed but count toward the same retirement income credit of up to $200 per return (modified AGI under $100,000).
Is Ohio a good state to retire for taxes?
For a single retiree with $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA, Ohio charges about $268 in state income tax, ranking #26 of 51 (lowest tax first).
Related
Sources: codes.ohio.gov, tax.ohio.gov, tax.ohio.gov (2). Rules reviewed .