Does Ohio Tax Social Security? No (2026)

Ohio does not tax your Social Security, but it does tax most other retirement income. Pensions, IRA withdrawals, and 401(k) distributions are taxable, though the rates are low and two credits cut the bill.1 Here's exactly what you'll owe.

This guide covers how Ohio retirement income tax works, what's exempt, and the two credits that help retirees.

In This Guide

• Does Ohio Tax Social Security?
• Ohio Retirement Income Tax at a Glance
• How Ohio Taxes Retirement Income
• The Two Credits for Retirees
• What You Still Pay in Ohio
• Frequently Asked Questions
• Next Steps

Does Ohio Tax Social Security?

No, Ohio does not tax Social Security. Beyond that, Ohio is a partial-tax state for retirees. It doesn't tax Social Security, but it does tax pensions, IRA withdrawals, and 401(k) distributions.

The good news is that Ohio's income tax is light. According to the Ohio Department of Taxation, Social Security benefits are deducted from Ohio adjusted gross income, so they never hit your state return.1 The rest of your retirement income is taxable, but Ohio's rates are low. The state doesn't tax the first $26,050 of income, and for tax year 2026 a flat 2.75 percent rate applies to income above that, down from a 3.125 percent top rate in 2025.1

Two credits soften the bill further. We'll walk through both below.

Ohio Retirement Income Tax at a Glance

Here's how each common income source is treated at the state level.

The split is simple. Social Security and qualified Roth money are out. Pensions and traditional IRA and 401(k) withdrawals are in, taxed at Ohio's low rates.1

How Ohio Taxes Retirement Income

Ohio starts with your federal adjusted gross income, then deducts Social Security. What's left, including pension, IRA, and 401(k) income, is your Ohio taxable income.

The rate structure is what keeps the bill modest. Ohio doesn't tax the first $26,050 of income. For tax year 2025 the schedule was graduated with a top rate of 3.125 percent, and for tax year 2026 Ohio moves to a flat 2.75 percent rate on income above the $26,050 floor.1 A retiree drawing a pension alongside Social Security pays Ohio tax only on the portion above that floor, at 2.75 percent. That's a far cry from the top rates in high-tax states.

Ohio has been phasing its income tax down for several years, collapsing what used to be a multi-bracket schedule toward this single 2.75 percent rate for 2026.1 The direction has been steadily lower, so the state tax on a given amount of retirement income has tended to fall, not rise, from year to year. Confirm the current-year rate with the Ohio Department of Taxation when you file.

There's no broad age-based exclusion for pension income the way some states offer. Instead, Ohio's relief for retirees comes through two specific credits and, for veterans, the uniformed services retirement deduction.1

Veterans get an extra break. Ohio provides a deduction for uniformed services retirement income on the Ohio Schedule of Adjustments, so military retirement pay is effectively removed from your Ohio taxable income.1 Claim it on your Ohio return, and confirm the current line and any limits with the Ohio Department of Taxation.

The Two Credits for Retirees

Ohio offers two credits aimed squarely at retirees. Both are nonrefundable, meaning they can reduce your tax to zero but won't generate a refund beyond that.

Retirement Income Credit. Per the Ohio Department of Taxation, this credit is worth up to $200, based on how much qualifying retirement income you report (pensions, IRA, and 401(k) distributions).1 The credit amount steps up with your retirement income, reaching its $200 maximum once qualifying retirement income tops $8,000. It's available to taxpayers whose modified adjusted gross income, less exemptions, is under $100,000.1 Above that income level, you don't qualify.

Senior Citizen Credit. This is a flat $50 credit for taxpayers who are 65 or older during the tax year.1 It's separate from the Retirement Income Credit, though Ohio limits you to claiming one or the other in certain situations, so check the current instructions on the Ohio Department of Taxation site or with your preparer.

Neither credit is large on its own, but combined with Ohio's low rates and the Social Security deduction, they keep the total state tax on a typical retirement modest. Confirm the current credit amounts and income thresholds when you file, since the figures can change year to year.

What You Still Pay in Ohio

Beyond the state income tax, Ohio retirees face the usual other taxes.

Federal income tax. The IRS taxes pension income, traditional IRA and 401(k) withdrawals, and often part of Social Security benefits, regardless of how Ohio treats them.

Local income tax. This one catches people off guard. Many Ohio municipalities levy their own income tax, but they generally tax wages, not retirement income. Most cities don't tax pensions, Social Security, or retirement-account withdrawals, but rules vary by municipality, so confirm with your city if you have earned income in retirement.

Property and sales tax. Ohio property taxes are set locally and vary widely by county. Ohio runs a Homestead Exemption that lowers property tax for eligible seniors and disabled homeowners. The state also charges a sales tax, with local add-ons. See our senior property tax relief guide for how Ohio's Homestead Exemption works.

For families weighing how retirement income covers care, start with our guide on how to pay for senior care, our framework for building a senior care funding plan, and our overview of retirement accounts for care.

Next Steps

• Confirm the current credit amounts and income thresholds when you file, since Ohio's figures can change.
• If you're 65 or older, check whether the $50 Senior Citizen Credit or the up-to-$200 Retirement Income Credit gives you the better result.1
• If you own a home, apply for the Ohio Homestead Exemption if you qualify.
• Map income against care costs. Read our guide to paying for senior care and retirement accounts for care.

Learn More

Find personalized help planning retirement income for senior care at brevy.com.

The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.