Ohio
OH · state · 17 cited facts
| Category | Provision | Value | Source |
|---|---|---|---|
| trust-nexus | Incomplete-gift nongrantor trust / ING (income tax reach) | REACHED: conjunctive settlor + qualifying-beneficiary test, and the ING grantor is himself an Ohio-domiciled qualifying (potential current) beneficiary; stripping every Ohio beneficiary would escape but defeats the ING's purpose. Ironically the OING's namesake state taxes its own residents' INGs | sources (1)Ohio Rev. Code 5747.01(I)(3)(a)(ii) (resident trust: Ohio transferor plus Ohio qualifying beneficiary) · high confidence · as of 2026-07-13 · TY 2026 Ohio taxes an Ohio settlor's irrevocable trust while any qualifying beneficiary is Ohio-domiciled A trust resides in this state for the trust's current taxable year to the extent, as described in division (I)(3)(d) of this section, that the trust consists directly or indirectly, in whole or in part, of assets, net of any related liabilities, that were transferred, or caused to be transferred, directly or indirectly, to the trust by any of the following: ... (ii) A person who was domiciled in this state for the purposes of this chapter when the person directly or indirectly transferred assets to an irrevocable trust, but only if at least one of the trust's qualifying beneficiaries is domiciled in this state for the purposes of this chapter during all or some portion of the trust's current taxable year Note: Qualifying beneficiary = potential current beneficiary per IRC 1361(e)(2), quoted in the same section. No Ohio ING-specific grantor-attribution statute exists; the resident-trust definition is the hook. https://codes.ohio.gov/ohio-revised-code/section-5747.01 |
| estate-none | Estate and inheritance tax | None | sources (1)Ohio Department of Taxation, 2013 Annual Report, Estate Tax section · high confidence · as of 2026-07-02 · TY 2025 OH estate tax repealed for deaths on or after Jan 1, 2013 (HB 153) The Ohio Estate Tax has been repealed for estates of individuals dying on or after Jan. 1, 2013 (see House Bill 153, 129th General Assembly). Note: PDF fetched, quote on page 1. Same PDF: 'no return shall be filed for estates of decedents dying on or after Jan. 1, 2013.' HB 110 (134th GA) later sunset tax on after-discovered property post-2021. https://dam.assets.ohio.gov/image/upload/tax.ohio.gov/communications/publications/annual_reports/2013_annual_report/2013_ar_section_2_estate_tax.pdf |
| rate | Top income tax rate (through TY2025) | $342 + 2.75% above $26,050 / $2,394.32 + 3.125% above $100,000 (statutory formula, not standard brackets) | sources (1)Ohio Rev. Code §5747.02(A)(3)(b) · high confidence · as of 2026-06-10 · TY 2025 Ohio income tax is a statutory formula: $342 + 2.75% above $26,050; $2,394.32 + 3.125% above $100,000 For taxable years beginning in 2025, the tax imposed under section 5747.02 of the Revised Code shall equal: $0 for income not exceeding $26,050; $342.00 plus 2.75% of income exceeding $26,050 but not exceeding $100,000; and $2,394.32 plus 3.125% of income exceeding $100,000. Note: The $342 entry-level amount and the $2,394.32 upper entry do NOT produce a smooth bracket: there is an $18.69 cliff at $100,000. Municipal income taxes cannot reach portfolio capital gains under RC §718.01 (intangibles exemption). School district taxes (0.25% to 2%) on a 'traditional' base CAN reach capital gains; roughly 200 Ohio districts impose them. https://codes.ohio.gov/ohio-revised-code/section-5747.02 |
| rate | Income tax rate (TY2026+, flat) | Flat 2.75% on nonbusiness income above the $26,050 zero bracket (HB 96; the 3.125% tier is gone) | sources (1)Ohio Rev. Code §5747.02 (as amended by HB 96, 2025); Ohio House budget release · medium confidence · as of 2026-07-03 · TY 2026 Ohio TY2026: flat 2.75% on nonbusiness income above $26,050 (HB 96 phase-down complete) takes the top tax bracket down from 3.5% to 3.125% in tax year 2025 and down to 2.75% in tax year 2026, and into the future Note: Quote is the Ohio House release describing HB 96's enacted schedule; RC 5747.02's TY2026-and-after paragraph is the statutory home. The $26,050 zero bracket is retained; the $100,000 tier disappears. https://ohiohouse.gov/news/republican/ohio-house-passes-budget-plan-that-delivers-historic-property-tax-relief-for-ohioans-implements-nations-second-lowest-income-tax-rate-135035 |
| conformity | Loss carryforward | Conforms to IRC §1212 indefinite federal carryforward applies | sources (1)IRC §1212(b) · high confidence · as of 2026-06-21 · TY 2025 IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year. Note: IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim |
| muni-instate | In-state muni bond interest | Exempt: Ohio Rev. Code §5747.01(A)(1) addition is expressly limited to obligations of states other than Ohio | sources (1)Ohio Rev. Code §5747.01(A)(1) · high confidence · as of 2026-06-18 · TY 2025 OH taxes out-of-state muni bond interest; OH bonds exempt Ohio Rev. Code §5747.01(A)(1) Add interest or dividends on obligations or securities of any state or of any political subdivision or authority of any state, other than this state or a political subdivision or authority of this state.https://codes.ohio.gov/ohio-revised-code/section-5747.01 |
| muni-outstate | Out-of-state muni bond interest | Taxable: Ohio Rev. Code §5747.01(A)(1): 'interest or dividends on obligations ... of any state ... other than this state' added to OH income | sources (1)Ohio Rev. Code §5747.01(A)(1) · high confidence · as of 2026-06-18 · TY 2025 OH taxes out-of-state muni bond interest; OH bonds exempt Ohio Rev. Code §5747.01(A)(1) Add interest or dividends on obligations or securities of any state or of any political subdivision or authority of any state, other than this state or a political subdivision or authority of this state.https://codes.ohio.gov/ohio-revised-code/section-5747.01 |
| qoz-conformity | QOZ conformity (IRC §1400Z-2) | Conforms to IRC §1400Z-2 QOZ gain deferral and 10-year exclusion via rolling IRC conformity | sources (1)Ohio Rev. Code Ann. §5747.01(A); HB 14 (eff. March 7, 2025) · high confidence · as of 2026-07-02 · TY 2025 Ohio conforms to IRC §1400Z-2 QOZ gain deferral and exclusion (A) "Adjusted gross income" or "Ohio adjusted gross income" means federal adjusted gross income, as defined and used in the Internal Revenue Code, adjusted as provided in this section: Note: ORC §5747.01(A) defines Ohio adjusted gross income as federal AGI with enumerated adjustments; no §1400Z-2 addback appears among them, so the federal QOZ deferral and exclusion flow into the Ohio base. Ohio HB 14 (effective March 7, 2025) updated the conformity date. https://codes.ohio.gov/ohio-revised-code/section-5747.01 |
| qsbs-conformity | QSBS conformity (IRC §1202) | Conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity; no addback | sources (1)Ohio Rev. Code Ann. §5747.01(A); HB 14 (eff. March 7, 2025) · high confidence · as of 2026-07-02 · TY 2025 Ohio conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity (A) "Adjusted gross income" or "Ohio adjusted gross income" means federal adjusted gross income, as defined and used in the Internal Revenue Code, adjusted as provided in this section: Note: ORC §5747.01(A) defines Ohio adjusted gross income as federal AGI with enumerated adjustments; no §1202 addback appears among them, so federally excluded QSBS gain never enters the Ohio base. Ohio HB 14 (effective March 7, 2025) updated the conformity date. https://codes.ohio.gov/ohio-revised-code/section-5747.01 |
| agency-obligations | FNMA/FHLMC bond interest | Taxable: Ohio Rev. Code §5747.01(A)(1) subtraction requires interest be 'exempt from state income taxes under the laws of the United States'; FNMA/FHLMC have no federal bondholder exemption statute | sources (1)Ohio Rev. Code §5747.01(A)(1) · medium confidence · as of 2026-06-20 · TY 2025 Ohio subtraction for U.S. obligation interest requires exemption from state income taxation under federal law; FNMA and FHLMC have no such federal bondholder exemption 'Ohio adjusted gross income' means federal adjusted gross income, with the following modifications: (1) Deduct interest and dividends on obligations of the United States and its territories and possessions or of any authority, commission, or instrumentality of the United States to the extent the interest and dividends are exempt from state income taxes under the laws of the United States. Note: Ohio Rev. Code §5747.01(A)(1) requires the interest be 'exempt from state income taxes under the laws of the United States.' FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) have no bondholder exemption statute. No Ohio DT named-entity publication found; confidence: medium. https://codes.ohio.gov/ohio-revised-code/section-5747.01 |
| dividend-qualified | Qualified dividend rate (IRC §1(h)(11)) | Ordinary rate: Ohio has no IRC §1(h)(11) preferential rate; qualified dividends taxed at ordinary rates (formula: $342 + 2.75% above $26,050; $2,394.32 + 3.125% above $100,000) | sources (1)Ohio Rev. Code §5747.02(A)(3)(b) · high confidence · as of 2026-06-10 · TY 2025 Ohio income tax is a statutory formula: $342 + 2.75% above $26,050; $2,394.32 + 3.125% above $100,000 For taxable years beginning in 2025, the tax imposed under section 5747.02 of the Revised Code shall equal: $0 for income not exceeding $26,050; $342.00 plus 2.75% of income exceeding $26,050 but not exceeding $100,000; and $2,394.32 plus 3.125% of income exceeding $100,000. Note: The $342 entry-level amount and the $2,394.32 upper entry do NOT produce a smooth bracket: there is an $18.69 cliff at $100,000. Municipal income taxes cannot reach portfolio capital gains under RC §718.01 (intangibles exemption). School district taxes (0.25% to 2%) on a 'traditional' base CAN reach capital gains; roughly 200 Ohio districts impose them. https://codes.ohio.gov/ohio-revised-code/section-5747.02 |
| treasury | U.S. Treasury interest | Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds) | sources (1)31 U.S.C. §3124(a) · high confidence · as of 2026-06-20 · TY 2025 U.S. Treasury interest exempt from Ohio income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax. Note: 31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124 |
| fhlb-ffcb | FHLB and FFCB bond interest | Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities | sources (2)12 U.S.C. §1433 (Federal Home Loan Bank Act) · high confidence · as of 2026-06-20 · TY 2025 FHLB and FFCB bond interest exempt from Ohio income tax: federal enabling statutes mandate state tax exemption Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority. Note: 12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim12 U.S.C. §2023 (Farm Credit Act) · high confidence · as of 2026-06-20 · TY 2025 Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124). Note: 12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim |
| carryback | Capital loss carryback | None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years | sources (1)IRC §1212(b) · high confidence · as of 2026-06-21 · TY 2025 IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year. Note: IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim |
| character | Long-term capital gains treatment | Ordinary rate: no preferential long-term rate; capital gains taxed as ordinary income at graduated Ohio rates (ORC §5747.02) | sources (1)Ohio Rev. Code §5747.02(A)(3)(b) · high confidence · as of 2026-06-10 · TY 2025 Ohio income tax is a statutory formula: $342 + 2.75% above $26,050; $2,394.32 + 3.125% above $100,000 For taxable years beginning in 2025, the tax imposed under section 5747.02 of the Revised Code shall equal: $0 for income not exceeding $26,050; $342.00 plus 2.75% of income exceeding $26,050 but not exceeding $100,000; and $2,394.32 plus 3.125% of income exceeding $100,000. Note: The $342 entry-level amount and the $2,394.32 upper entry do NOT produce a smooth bracket: there is an $18.69 cliff at $100,000. Municipal income taxes cannot reach portfolio capital gains under RC §718.01 (intangibles exemption). School district taxes (0.25% to 2%) on a 'traditional' base CAN reach capital gains; roughly 200 Ohio districts impose them. https://codes.ohio.gov/ohio-revised-code/section-5747.02 |
| filing-status-identical | Same bracket schedule for all filing statuses | Yes: ORC §5747.02(A)(3) provides one rate formula for all filing statuses; same thresholds for Single and MFJ, creating the maximum marriage penalty on a joint return vs. two singles | sources (1)Ohio Rev. Code §5747.02(A)(3) · high confidence · as of 2026-06-19 · TY 2025 Ohio income tax rate formula applies to all individuals (same schedule all filing statuses; no MFJ brackets) If the balance thus obtained is greater than twenty-six thousand fifty dollars, the tax is hereby levied as follows: More than $26,050 but not more than $100,000: $342.00 plus 2.75% of the balance in excess of twenty-six thousand fifty dollars; and more than $100,000: $2,394.32 plus 3.125% of the balance in excess of one hundred thousand dollars. Note: ORC §5747.02(A)(3) provides one formula for all individual filers; no separate MFJ threshold. Same thresholds for Single, MFJ, and MFS: maximum marriage penalty on a joint return vs. two singles. https://codes.ohio.gov/ohio-revised-code/section-5747.02 |
| migration-loss-conformity | Migration loss carryforward conformity | Full conform (structural inference): Ohio computes its income tax from the federal base, so an imported federal section 1212 capital-loss carryforward flows through to offset post-residency gains; no published guidance addresses the imported pre-residency carryforward. | sources (1)Ohio Rev. Code §5747.02(A)(3)(b) · medium confidence · as of 2026-07-03 · TY 2025 Ohio conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference the tax imposed by this section on income other than taxable business income shall be measured by Ohio adjusted gross income, less taxable business income and less an exemption Note: Ohio Rev. Code §5747.02 measures the tax by Ohio adjusted gross income, which derives from federal adjusted gross income, so the federal section 1212 capital-loss base carries through. No published guidance addresses the imported pre-residency carryforward; that piece stays a structural inference. https://codes.ohio.gov/ohio-revised-code/section-5747.02 |