How Ohio withholding works in 2026
Ohio's withholding formula changed on August 1, 2026. The new optional computer formula from the Ohio Department of Taxation has three rows:
| Annual taxable wages | Ohio withholding |
|---|---|
| $26,050 or less | 1.6% of taxable wages |
| $26,050 to $100,000 | $416.80 + 2.99% of wages over $26,050 |
| More than $100,000 | $2,627.91 + 3.40% of wages over $100,000 |
Taxable wages are your yearly wages (after pre-tax 401(k) and health insurance) minus $650 for each exemption you claim on Form IT 4. Your employer annualizes each paycheck, applies the formula and divides by the number of pay periods.
The formula is a withholding estimate, not your final Ohio tax. Your actual liability is worked out on Form IT 1040, which has its own rates and credits.
Worked example
Ohio's local income taxes
Ohio is known for its local income taxes. Most cities and villages tax wages earned there, and many tax residents who work elsewhere too, often with a credit for tax paid to the work city. Some school districts add their own income tax for residents.
These taxes vary from one place to the next, so this calculator leaves them out. To include yours, look at the local tax lines on your pay stub, or multiply your wages by your city's rate and subtract it from the take-home pay shown here.
Lowering your Ohio tax
- 401(k) contributions: in this calculator, traditional 401(k) contributions reduce Ohio wages as they do federal wages.
- Pre-tax health insurance: premiums through a cafeteria plan reduce Ohio wages, and Social Security and Medicare too.
- Exemptions: claim the exemptions you're entitled to on Form IT 4. Each one lowers your yearly Ohio taxable wages by $650.
These are estimates of what's withheld. Your Ohio refund or balance due is settled when you file your state and local returns.
The same Ohio salary at other pay frequencies
For the $65,000 example (single, one exemption, no pre-tax deductions):
| Pay frequency | Gross per paycheck | Ohio tax | Take-home per paycheck |
|---|---|---|---|
| Weekly (52) | $1,250.00 | $30.04 | $1,016.25 |
| Bi-weekly (26) | $2,500.00 | $60.08 | $2,032.52 |
| Semi-monthly (24) | $2,708.33 | $65.08 | $2,201.89 |
| Monthly (12) | $5,416.67 | $130.16 | $4,403.81 |
Filing status and 401(k) in Ohio
Married filing jointly adds a second $650 exemption, so Ohio withholding on $65,000 falls slightly to $1,542.54, while federal income tax drops to $3,440. A 6% 401(k) contribution ($3,900) lowers Ohio withholding to $1,445.36 and federal income tax to $5,152.