Ohio state income tax rate 2027

A zero bracket, then 2.75%

Ohio Revised Code 5747.02(A)(3) says that for taxable years beginning in 2026 and thereafter the tax on non-business income is "$332.00 plus 2.75% of the amount in excess of $26,050". Income at or below $26,050 is not taxed at all. That flat structure replaced the two-rate schedule of 2025 (2.75% to $100,000 and 3.125% above), so there is nothing to step down in 2027: the projected rate is the same 2.75% on the part above $26,050. The statute adds that the commissioner adjusts the income amounts each August by the GDP deflator unless the section provides otherwise, so the $26,050 threshold can move, and the page labels it projected for that reason.

Business income is different

Section 5747.02(A)(4) taxes "taxable business income" at 3% after a deduction, and the Ohio Department of Taxation notes that since 2016 taxable business income has been taxed at a flat 3%. This calculator treats wages only. If you also have pass-through business income, the Ohio business income deduction and the 3% rate apply to that part.

Exemptions by income tier

Section 5747.025 gives a personal exemption for the taxpayer, spouse and each dependent that steps down as income rises: $2,350, $2,100 or $1,850 in the statute base, for modified adjusted gross income up to $40,000, up to $80,000 and above. The amounts are indexed; Tax Foundation lists $2,400, $2,150 and $1,900 for 2026, which are the figures used here. The exemption is not available above $500,000 of modified adjusted gross income for tax years beginning in 2026 or later.

Worked example

Single, $75,000 of wages, in the middle exemption tier ($2,150): taxable income $72,850. Tax is $332 plus 2.75% of the amount above $26,050, which is $1,619.00, an effective 2.16% of wages. At $30,000 of wages the exemption brings taxable income to $27,600, and tax is $374.63. A couple with $120,000 of wages and two dependents has four exemptions at $2,100 or $1,850 depending on the tier and owes $2,706.63.

Local taxes on top

Ohio cities levy their own income taxes on wages, and the Department of Taxation also administers a separate school district income tax. Neither is in this figure. See the Columbus income tax calculator for a city example and the Ohio paycheck calculator for the pay-stub view.

Who this is for, and what it does not cover

It is for employees and planners estimating Ohio state income tax on wages for 2027. It does not cover local income taxes, tax credits, retirement or investment income, self-employment tax, federal income tax or payroll taxes, and it does not file or submit anything. The result changes if you enter a different rate, so use the rate box when the state announces a final 2027 figure.

FAQ

What is the Ohio state income tax rate for 2027?

Under ORC 5747.02, for taxable years beginning in 2026 and thereafter, non-business income up to $26,050 is not taxed and income above it is taxed at $332 plus 2.75% of the excess.

Is Ohio income tax a flat tax now?

Effectively yes above the zero bracket. For 2026 and after the statute has one rate, 2.75%, above $26,050, replacing the 2025 schedule with a 3.125% top rate.

Does Ohio tax the first $26,050 of income?

No. The statute says no tax is imposed when the balance after exemptions is $26,050 or less.

How does the Ohio personal exemption work?

Section 5747.025 gives a per-person exemption that falls as modified AGI rises: three tiers at $40,000 and $80,000, and none above $500,000 from 2026. Tax Foundation lists $2,400, $2,150 and $1,900 for 2026.

Are Ohio city and school district taxes included?

No. Municipal income taxes and the school district income tax are separate from the state tax and are not in this estimate.

Is this my final 2027 Ohio tax?

No. It is a projection from the statute as of November 1, 2026 using 2026 exemption amounts. The threshold and exemptions are indexed and can change.

Sources

Retrieved 2026-11-01. Each link was opened and checked against the claim next to it; where a page blocks automated readers a dated archive copy is named.

• Ohio Revised Code 5747.02: tax rates (Wayback copy of codes.ohio.gov): The $332 plus 2.75% over $26,050 formula for 2026 and thereafter, the 3% business income rate and the annual indexing language.
• Ohio Revised Code 5747.025: personal exemptions (Wayback copy): The three exemption tiers, the $500,000 cutoff and annual adjustment.
• Ohio Department of Taxation: annual tax rates: The 2025 schedule and the flat 3% on taxable business income.
• Tax Foundation: State Individual Income Tax Rates and Brackets, 2026: The indexed 2026 exemption amounts of $2,400, $2,150 and $1,900.