Ohio tax deductions and write-offs (2026)

No. Ohio fully exempts military retired pay from state income tax. Other retirement income: Pensions and 401(k)/IRA withdrawals are taxed. The only break is a small retirement income credit of up to $200 per return, available if modified AGI less exemptions is under $100,000.

Yes. Pensions and 401(k)/IRA withdrawals are taxed. The only break is a small retirement income credit of up to $200 per return, available if modified AGI less exemptions is under $100,000. Classified as taxed because the maximum $200 credit is not a significant exclusion.

No. Ohio does not tax Social Security benefits; the taxable portion is deducted on the Ohio Schedule of Adjustments.

Yes: Ohio offers the Ohio Earned Income Tax Credit, 30% of the federal EITC (nonrefundable). Nonrefundable; capped at the Ohio tax remaining after earlier nonrefundable credits. A bill to add a refundable portion was introduced but not enacted.

Only instead of income tax: itemizers in Ohio pick sales tax (5.75% state rate, about 7.29% with local taxes) or state income tax, whichever is bigger. Vehicles are taxed at the combined rate of the buyer's county of residence, not the dealer's; combined rates are capped at 8.75%.

Yes on your federal return if you itemize, within the $40,400 SALT cap. Ohio adds its own break: 2.5% owner-occupancy credit off taxes from qualifying levies on any owner-occupied home (apply on DTE 105C).

No: Ohio doesn't offer a renter's credit or rent rebate. Ohio has no state tax credit, deduction, or rebate specifically for renters. Ohio's homestead exemption for seniors and people with disabilities applies only to owners of homes and manufactured homes they live in. Lower-income renters can still claim Ohio's earned income credit: 30% of the federal EITC.

No: Ohio doesn't base registration on your car's value, so it isn't deductible as personal property tax. Passenger registration is a flat $36 plus local permissive taxes in $5 increments, capped at $30 per year.

Ohio moves to a flat 2.75% rate on income above $26,050 for 2026, but many cities and school districts add their own income taxes.

Yes for state tax: Ohio lets you deduct up to $4,000 per beneficiary per year, with unlimited carryforward.

No state child tax credit, but Ohio has a child care credit: Percentage of the federal credit, by AGI: 100% under $20,000; 25% for $20,000-$39,999; no credit at $40,000 or more. Nonrefundable. Gov. DeWine's proposed $1,000 refundable child credit for children under 7 was not enacted in 2025. Dependent exemption is $2,400 (AGI $40,000 or less), $2,150 ($40,001-$80,000), or $1,900 (above $80,000), and is disallowed at $500,000+ AGI starting 2026. Ohio does have an earned income credit: 30% of the federal EITC.

Yes, as a business expense: Ohio charges $99 to form an LLC; ongoing: None. Commercial Activity Tax applies only above $6M taxable gross receipts (0.26%); the CAT minimum tax was eliminated.