Ohio — Personal Income Tax

## Tax imposed on residents and nonresidents

Ohio imposes an annual personal income tax on every individual, trust, and estate residing in or earning or receiving income in Ohio, on those earning or receiving Ohio lottery winnings, prizes, or awards, on those earning or receiving winnings on casino or sports gaming, and on those otherwise having nexus with or in Ohio under the U.S. Constitution.

Source: Ohio Rev. Code § 5747.02(A)

## Filing requirement for individuals

An individual must file an Ohio income tax return for any taxable year for which the individual is liable for the tax imposed by Ohio Rev. Code § 5747.02, unless the total credits allowed under certain provisions (retirement income credit, senior citizen credit, and lump sum distribution credit) equal to or exceed the tax imposed.

Source: Ohio Rev. Code § 5747.08

## Residents

A resident of Ohio for the entire year must file an Ohio return if the individual has income. Ohio law defines a "resident" as an individual who is domiciled in Ohio, subject to the contact period test in Ohio Rev. Code § 5747.24.

Source: Ohio Rev. Code § 5747.01(I)

Residents must report all income on their Ohio return, regardless of where the income is earned.

## Part-year residents

Individuals who move into or out of Ohio during the tax year are part-year residents and must file an Ohio return if they have income. Part-year residents report income earned or received during the portion of the year they were Ohio residents, and Ohio-sourced income earned during the nonresident portion of the year.

## Nonresidents

Nonresidents must file an Ohio return if they have Ohio-sourced income. Ohio-sourced income includes wages for work performed in Ohio, income from an Ohio-based business or pass-through entity, Ohio real and tangible property income, and Ohio lottery or casino winnings.

Reciprocity exception

Ohio has reciprocity agreements with Indiana, Kentucky, Michigan, Pennsylvania, and West Virginia. Residents of those states who receive only wage income from Ohio sources are not required to file an Ohio return.

Source: Ohio Rev. Code § 5747.05(A)(2)

## Filing threshold

For individuals, no tax is imposed on Ohio adjusted gross income (less taxable business income and less exemptions) if the balance is equal to or less than $26,050 for taxable years beginning in 2026 and thereafter. This threshold is adjusted annually for inflation.

Source: Ohio Rev. Code § 5747.02(A)(3)

## School district income tax

Certain Ohio school districts impose a separate school district income tax. Individuals subject to a school district income tax must file Form SD 100 (School District Income Tax Return) in addition to the state return.

Source: Ohio Rev. Code § 5747.021

Ohio imposes a graduated income tax on nonbusiness income (wages, salaries, interest, dividends, and other income that is not taxable business income). The tax is measured by Ohio adjusted gross income, less taxable business income and less exemptions for the taxpayer, spouse, and dependents.

For taxable years beginning in 2026 and thereafter, if the balance obtained after subtracting taxable business income and exemptions is equal to or less than $26,050, no tax is imposed. If the balance exceeds $26,050, the tax is $332.00 plus 2.75% of the amount in excess of $26,050. This represents a flat-rate structure for all nonbusiness income above the $26,050 threshold.

The $26,050 threshold and the tax dollar amounts are subject to annual inflation adjustment by the Tax Commissioner based on changes in the gross domestic product deflator, though certain adjustments may be suspended by statute.

Taxable business income (from sole proprietorships, partnerships, S corporations, and LLCs) is taxed separately at a flat 3% rate under Ohio Rev. Code § 5747.02(A)(4)(a), after an exemption of the first $250,000.

Source: Ohio Rev. Code § 5747.02(A)(3)

Ohio imposes a flat 3% tax on taxable business income from sole proprietorships, partnerships, S corporations, and LLCs. The tax applies to business income remaining after subtracting the business income deduction allowed under Ohio law. That deduction is $250,000 for taxpayers filing jointly, or $125,000 for single filers and married taxpayers filing separately.

Source: Ohio Rev. Code § 5747.02(A)(4)

Ohio personal income tax returns are due on or before the fifteenth day of the fourth month following the close of the taxable year. For calendar-year taxpayers, this means the return is due April 15.

A taxpayer who receives a federal extension for filing automatically receives an Ohio extension to the same due date, provided the federal extension date is beyond Ohio's unextended due date. An extension to file does not extend the time to pay any tax due.

Source: Ohio Rev. Code § 5747.09; Ohio Admin. Code 5703-7-05

Ohio allows a personal exemption for the taxpayer, spouse, and each dependent. For taxable years beginning in 2026, the exemption amount is $2,350 if modified adjusted gross income (MAGI) is $40,000 or less; $2,100 if MAGI exceeds $40,000 but does not exceed $80,000; or $1,850 if MAGI exceeds $80,000. No exemption is allowed if MAGI equals or exceeds $500,000 for taxable years beginning in 2026 or thereafter. These amounts are subject to annual inflation adjustment by the Tax Commissioner based on changes in the gross domestic product deflator.

Source: Ohio Rev. Code § 5747.025

Ohio determines individual residency for personal income tax through a contact period test that creates statutory presumptions based on physical presence in the state. Understanding this test is critical because Ohio residents owe tax on worldwide income, while nonresidents owe tax only on Ohio-sourced income.

## Contact period definition

An individual has one contact period in Ohio if the individual is away overnight from an abode located outside Ohio and, while away overnight, spends at least some portion (however minimal) of each of two consecutive days in Ohio. "Away overnight" means away from the out-of-state abode for a continuous period of time beginning at any time on one day and ending at any time on the next day—the minimum duration does not matter.

## The 213-contact-period threshold and burden of proof

Ohio law creates two distinct rebuttable presumptions of domicile based on the number of contact periods:

Fewer than 213 contact periods (with an Ohio abode): An individual who has fewer than 213 contact periods in Ohio during the tax year, who has an abode in Ohio at any time during that year, and who does not qualify for the irrebuttable presumption described below, is presumed to be domiciled in Ohio for the entire year. The individual may rebut this presumption for any portion of the year with a preponderance of the evidence (more likely than not).

213 or more contact periods (with an Ohio abode): An individual who has at least 213 contact periods in Ohio and has an abode in Ohio at any time during the year is presumed to be domiciled in Ohio for the entire year. The individual may rebut this presumption only with clear and convincing evidence to the contrary—a substantially higher evidentiary burden.

## Irrebuttable presumption of non-Ohio domicile

An individual may obtain an irrebuttable presumption of non-Ohio domicile for the entire tax year by meeting all of the following requirements:

• No more than 212 contact periods in Ohio during the tax year;
• At least one abode outside Ohio during the entire tax year, for which the individual did not claim a depreciation deduction under Internal Revenue Code § 167;
• Did not hold a valid Ohio driver's license or identification card at any time during the tax year (surrendering it to the Ohio Bureau of Motor Vehicles or another jurisdiction's motor vehicle authority before the tax year begins satisfies this requirement);
• Did not receive an Ohio homestead exemption for the individual's primary residence for real property tax purposes during the tax year;
• If the individual attended or was enrolled in an Ohio state institution of higher education during the year, the tuition charged or incurred was not based on an abode being located in Ohio.

The individual must file a written statement with the Tax Commissioner, on the prescribed form, verifying that these requirements are met. The statement must be filed on or before the fifteenth day of the tenth month following the close of the tax year (October 15 for calendar-year taxpayers). The presumption is irrebuttable unless the statement is false.

## Burden of proof when challenged

If the Tax Commissioner challenges the number of contact periods an individual claims, the individual bears the burden of proof to verify the number by a preponderance of the evidence. An individual challenged by the Commissioner is presumed to have a contact period in Ohio for any period for which the individual does not prove by a preponderance of the evidence that the individual had no such contact period.

## Part-year residents

The contact period test does not apply to individuals who change domicile to or from Ohio during the tax year. Such individuals are part-year residents and are domiciled in Ohio for the portion of the year before or after the change, as applicable.

Source: Ohio Rev. Code § 5747.24