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. A filer with $26,050 or less of Ohio taxable nonbusiness income owes zero state income tax; above that line the 2025 bracket table charged $342.00 plus 2.750 percent of the amount over $26,050, rising to $2,394.32 plus 3.125 percent of the amount over $100,000. For tax year 2026 Ohio moves to a flat 2.75 percent rate.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, but read the bracket table carefully: $26,050 is a bracket line, not a blanket exemption. On the 2025 Ohio IT 1040, taxable nonbusiness income up to $26,050 is taxed at 0.000 percent; from $26,050 to $100,000 the tax is $342.00 plus 2.750 percent of the amount in excess of $26,050; above $100,000 it is $2,394.32 plus 3.125 percent of the amount in excess of $100,000.1 So a retiree with $68,050 of Ohio taxable nonbusiness income owes $342.00 plus 2.750 percent of the excess, not 2.750 percent of the excess alone. A retiree whose Ohio taxable income lands at $26,050 or less pays zero, and for tax year 2026 Ohio moves to a flat 2.75 percent rate.1 Either way, it'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 reduce the tax you owe rather than the income you report, and both carry the same $100,000 ceiling on modified adjusted gross income less exemptions.1

Retirement Income Credit. Per the Ohio Department of Taxation, this credit is worth up to $200 per return, and the amount comes from Table 2 in the IT 1040 instructions, based on your total eligible retirement income (pensions, IRA, and 401(k) distributions).1 To qualify, all of the following must be true: your modified adjusted gross income less exemptions is under $100,000; the income came from a pension, profit-sharing, or retirement plan and was received on account of retirement; it is included in your Ohio adjusted gross income; and you have not previously taken the Ohio lump sum retirement credit.1 Amounts already deducted on the Ohio Schedule of Adjustments, such as Social Security benefits and uniformed services retirement income, do not count toward this credit.

Senior Citizen Credit. This is a flat $50 per return for filers who were 65 or older at the end of the tax year, and it carries the same income ceiling as the Retirement Income Credit: your modified adjusted gross income less exemptions must be under $100,000, and you must not have previously taken the Ohio lump sum distribution credit.1 It's a separate credit from the Retirement Income Credit, 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 both the $50 Senior Citizen Credit and the up-to-$200 Retirement Income Credit. Each requires modified adjusted gross income less exemptions under $100,000.1
• 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.