# You asked: How is Ohio income tax calculated?

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## How is Ohio taxable income calculated?

Calculate Ohio taxable income by subtracting personal and dependent exemptions from Ohio adjusted gross income. For 2009, each taxpayer received a personal exemption, and an exemption for each dependent, of \$1,550.

## What is the Ohio state income tax rate for 2020?

For the 2020 tax year, which you file in early 2021, the top rate is 4.797%. Alone, that would place Ohio at the lower end of states with an income tax, but many Ohio municipalities also charge income taxes, some as high as 3%.

## What is the Ohio income tax rate?

Ohio Lawmakers Agree on Income Tax Cuts and Remote Work Tax Relief

Old Individual Income Brackets Old Rate New Rate
\$0 0% 0%
>\$22,151 2.850% 2.765%
>\$44,251 3.326% 3.226%
>\$88,451 3.802% 3.688%

## What is the Ohio exemption amount for 2020?

Personal and Dependent Exemption amounts are indexed for tax year 2020. If Modified Adjusted Gross Income is: • Less than or equal to \$40,000, the exemption amount is \$2,400. Greater than \$40,000 but less than or equal to \$80,000, the exemption amount is \$2,150. Greater than \$80,000, the exemption amount is \$1,900.

## What is Ohio income tax rate 2021?

While most brackets see a 3% rate reduction, the most substantial reduction applies to taxpayers earning more than \$110,650 with a rate reduction from 4.797% to the new 2021 top tax rate of 3.99%. Also, beginning in 2021 Ohio income tax is completely eliminated for those earning less than \$25,000.

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## What is the highest tax bracket in Ohio?

Ohio has a progressive income tax system with six tax brackets. Rates range from 0% to 4.797%. For all filers, the lowest bracket applies to income up to \$22,150 and the highest bracket only applies to income above \$221,300.

## Are taxes high in Ohio?

Ohio’s income tax rates have been going down gradually since 2005, according to the Ohio Department of Taxation. Like with federal taxes, Ohio has a progressive income tax system. This means folks who earn more have higher tax rates than lower-income residents.