Ohio Taxes

Ohio's income tax is effectively a single 2.75% rate for 2026 (R.C. 5747.02(A)(3)(c)). Ohio adjusted gross income, minus taxable business income and personal exemptions, of $26,050 or less is not taxed at all. Above that, the tax for taxable years beginning in 2026 and after is $332 plus 2.75% of the amount over $26,050. For 2025 there were two brackets — 2.75% up to $100,000 and 3.125% above — and for 2024 the top rate was 3.5%. Taxable business income is taxed separately at a flat 3% (R.C. 5747.02(A)(4)).

Ohio's state motor fuel tax is temporarily cut to one-hundredth of one cent ($0.0001) per gallon on both gasoline and diesel from 12:01 a.m. October 4, 2026 through 11:59 p.m. January 2, 2027 — a 90-day motor fuel tax holiday enacted by House Bill 519, signed by Governor Mike DeWine on October 1, 2026. The standard rates are 38.5 cents per gallon for gasoline and 47 cents per gallon for diesel, and they apply again after January 2, 2027 unless the law is changed. Under the law, fuel retailers must pass the full value of the tax savings on to consumers at the pump; failing to do so may be treated as an unfair or deceptive act and referred to the Ohio Attorney General. These are state taxes only; the 18.4-cent federal gasoline tax still applies.

Ohio real property tax is levied locally and applied to taxable value, not market value. Taxable value is the percentage of true value in money (or of current agricultural use value, for qualifying farmland) that the state tax commissioner sets by rule, and by law it cannot exceed 35% (R.C. 5715.01(B)). The bill is that taxable value multiplied by the millage voted and levied in your taxing district — county, township or city, school district and others — so rates vary widely by county and school district. A mill is one dollar of tax per $1,000 of taxable value.