State guide
Does Ohio tax retirement income? IRAs, Roth conversions and Social Security (2026)
By Secure Retirement PlannerUpdated
If you retire in Ohio, Social Security is not taxed, but pensions and IRA withdrawals are taxed at 2.75% above $26,050 for 2026. Your Roth conversion is taxed the same way, as ordinary income. Ohio has no age-based break for IRA money, so your whole taxable conversion is in your Ohio income.
Two Ohio quirks may matter to you more than the rate. If a conversion pushes your income (MAGI less exemptions) to $100,000 or more, you lose the retirement income credit and the $50 senior citizen credit. And if your school district uses a traditional-base income tax, your conversion is taxed there too.
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The short version
- Ohio starts with your federal AGI, so the taxable part of your conversion is Ohio income.
- For 2026, your Ohio taxable income above $26,050 is taxed at 2.75%, with a $332 base amount.
- You lose the retirement income credit (up to $200) and the senior citizen credit ($50) once your MAGI less exemptions reaches $100,000.
- Most of Ohio's taxing school districts use a traditional base that includes your IRA income. Earned-income-base districts don't tax it.
- Your city income tax doesn't apply to pensions and retirement benefits.
Does Ohio tax retirement income?
Partly. Ohio does not tax your Social Security. Your pensions, IRA and 401(k) withdrawals and Roth conversions are taxed at 2.75% on Ohio taxable income above $26,050. A retirement income credit of up to $200 can help if your income is under $100,000. Your city won't tax pensions, but some school districts will tax your IRA income.
| Income type | Taxed by Ohio in 2026? | Notes |
|---|---|---|
| Social Security | No | Deducted on the Ohio Schedule of Adjustments |
| Public pensions | Yes | 2.75% above $26,050. Retirement income credit up to $200 if MAGI less exemptions is under $100,000 |
| Private pensions | Yes | Same as public pensions. City income tax doesn't apply |
| IRA and 401(k) withdrawals | Yes | No age-based break. Traditional-base school districts also tax them |
| Roth conversions | Yes | Taxed like IRA withdrawals. A big one can cost you the $200 and $50 credits |
Does Ohio tax a Roth conversion?
Yes. Ohio's income tax starts with your federal adjusted gross income, and the taxable part of your conversion is in it. Ohio deducts your Social Security and a few other items. But it has no general break for IRA withdrawals or conversions at any age.
The good news is the rate. A state law, House Bill 96, moved Ohio to a flat rate for 2026. Under Ohio Revised Code 5747.02, you owe no tax if your Ohio taxable income is $26,050 or less. Above that, your tax is $332 plus 2.75% of the amount over $26,050. So each extra $1,000 you convert adds about $27.50 of Ohio tax.
The same schedule applies whether you file single or jointly. Ohio does not double the brackets for couples.
How did Ohio's income tax change for 2026?
For 2025, Ohio had two rates: 2.75% up to $100,000 of taxable income and 3.125% above it. For 2026 the top rate is gone. So if you do a large conversion, it is taxed at 2.75% all the way up.
| Ohio taxable income | 2025 tax | 2026 tax |
|---|---|---|
| $26,050 or less | $0 | $0 |
| $26,050 to $100,000 | $342 plus 2.75% over $26,050 | $332 plus 2.75% over $26,050 |
| Over $100,000 | $2,394.32 plus 3.125% over $100,000 | $332 plus 2.75% over $26,050 |
Which Ohio credits can a conversion cost me?
Several Ohio credits share the same test: your Ohio MAGI less exemptions must be under $100,000. It's a cliff. Go one dollar over and you lose the whole credit.
- Retirement income credit: up to $200 per return if you got pension, IRA or 401(k) income because you retired. Over $8,000 of such income earns you the full $200.
- Senior citizen credit: $50 per return if you were 65 or older at year end.
- Lump sum credits: also limited to MAGI less exemptions under $100,000.
A small number with a sharp edge
$250 of lost credits won't decide whether you convert. But if you are near $100,000, converting a little less can keep them. Converting much more doesn't make your loss any bigger.
Do Ohio school district and city income taxes apply to a conversion?
Your school district tax depends on your district's tax base. Traditional-base districts tax MAGI less exemptions, and that includes your IRA income and conversions. Earned-income-base districts tax only wages and self-employment income. The state's instructions say that leaves out retirement income.
The 2025 IT 1040 booklet lists district rates from 0.25% to 2.00%. You can look up your district at tax.ohio.gov/Finder.
City income tax is different. Ohio law (Revised Code 718.01) exempts pensions, retirement benefit payments and annuities from city income tax. City tax is mainly a tax on wages and business profits. So your city generally won't tax your conversion. If your city sends you a notice, ask a local preparer.
What about moving, estimated payments and Social Security?
Do you live in Ohio for only part of the year? You get Ohio's nonresident credit (form IT NRC) for income earned while you lived in another state. Federal law (4 U.S.C. 114) bars states from taxing people who no longer live there on IRA and pension income. So converting after you've truly moved out of Ohio generally keeps it out of Ohio tax. Ohio has strict residency rules, including an abode test, so get advice before you count on a move.
Ohio says you should make estimated payments if your Ohio tax after credits and withholding will be more than $500. The 2026 dates are April 15, June 15 and September 15, 2026, and January 15, 2027. Your school district tax has its own estimated payments.
Ohio deducts all the Social Security in your federal AGI. To see how a conversion can make more of your Social Security taxable federally, read Conversions and Social Security. To see your federal cost, try Roth conversion tax calculator.
Example: a Columbus-area couple crossing $100,000
Jim, 66, gets a $60,000 private pension, and the couple earns $5,000 of bank interest. Ann, 64, has no income of her own. Neither has started Social Security. In 2026 they convert $50,000 from Jim's IRA. They live in a traditional-base school district with a 1.5% tax.
Federally, Jim's age adds $1,650 to their standard deduction, plus the new $6,000 senior deduction. Their taxable income rises from $25,150 to $75,150, all at 12%. That's $6,000 of added federal tax.
In Ohio, their MAGI less exemptions rises from $60,700 to $111,200. Ohio tax before credits goes from about $1,285 to about $2,674. Because they cross $100,000, they also lose the $200 retirement income credit and the $50 senior credit. The total added Ohio tax is about $1,639. School district tax adds about $758 more.
Converting $30,000 would have kept them under $100,000 and kept both credits.
What this means for you: if your Ohio income is close to $100,000, a slightly smaller conversion can protect your credits.
| No conversion | Convert $30,000 | Convert $50,000 | |
|---|---|---|---|
| Federal AGI (and Ohio MAGI) | $65,000 | $95,000 | $115,000 |
| Federal tax added | $3,600 | $6,000 | |
| Ohio MAGI less exemptions | $60,700 | $91,200 | $111,200 |
| Ohio tax after credits | about $1,035 | about $1,874 | about $2,674 |
| Ohio tax added | about $839 | about $1,639 | |
| School district tax added (1.5%) | about $458 | about $758 |
Hypothetical example. Assumes married filing jointly, one spouse 65 or older, no Social Security, the 2026 federal standard deduction ($32,200 plus $1,650) and the $6,000 senior deduction, 2026 brackets (IRS Rev. Proc. 2025-32), Ohio's 2026 tax schedule in ORC 5747.02, and 2025 Ohio exemption amounts. Ann has no income, so the joint filing credit doesn't apply. School district figures are before any school district credits. It ignores Medicare IRMAA. Your numbers will differ.
Common questions
Does Ohio tax Roth conversions?
Yes. Ohio starts from your federal AGI and has no break for IRA money. So the taxable part of your conversion is taxed at Ohio's 2026 rate of 2.75% above $26,050.
What is Ohio's income tax rate for 2026?
You owe no tax on Ohio taxable income of $26,050 or less. Above that, you owe $332 plus 2.75% of the amount over $26,050, under ORC 5747.02 as amended by House Bill 96.
Can a Roth conversion make me lose Ohio credits?
Yes. Your MAGI less exemptions must be under $100,000 for each of them. That covers the retirement income credit (up to $200), the $50 senior citizen credit and the lump sum credits.
Does my Ohio school district tax a Roth conversion?
Only if your district uses the traditional tax base. Earned-income-base districts tax only wages and self-employment income.
Does my Ohio city tax a Roth conversion?
Generally no. Ohio law exempts pensions, annuities and retirement benefit payments from city income tax. City tax applies mainly to wages and business profits.
Does Ohio tax Social Security?
No. You deduct the Social Security in your federal AGI on the Ohio Schedule of Adjustments.
Sources
Facts on this page were last checked on November 9, 2026.
- Ohio Revised Code 5747.02, tax rates · 2025 and 2026 tax schedules after HB 96. Read Nov 9, 2026.
- Ohio Department of Taxation, 2025 Ohio IT 1040 / SD 100 instructions · Exemptions, credits and $100,000 test, Social Security deduction, school district bases and rates, $500 estimate rule, residency. Read Nov 9, 2026.
- Ohio Revised Code 5747.055, retirement and senior credits · Retirement income credit table, $50 senior credit, $100,000 limit. Read Nov 9, 2026.
- Ohio Revised Code 718.01, municipal income tax definitions · Pensions and retirement benefits exempt from city tax. Read Nov 9, 2026.
- 4 U.S.C. 114, limit on state taxation of retirement income · Nonresidents' IRA and pension income. Read Nov 9, 2026.
- IRS Rev. Proc. 2025-32 (2026 inflation adjustments) · 2026 federal brackets and standard deduction. Read Nov 9, 2026.
Who wrote this
This guide was written and fact-checked by the Secure Retirement Planner editorial team using IRS, CMS and Social Security sources listed above. We update guides when the law or yearly limits change. How we research.