Ohio does not tax Social Security benefits
If you receive Social Security retirement, survivor, or disability benefits and live in Ohio, the state will not tax that income. Ohio is one of a handful of states with this policy. Your federal tax situation is separate — the IRS may tax your benefits depending on your total income — but Ohio itself takes nothing from Social Security payments.
This applies whether you receive benefits as a retiree, a surviving spouse or child, or a person with a disability. It also applies to Supplemental Security Income (SSI), which is a separate federal program for people with low income and limited resources.
Key Takeaways
- Ohio does not tax Social Security retirement, survivor, or disability benefits at the state level.
- The federal government may still tax your Social Security depending on your total income, even though Ohio will not.
- SSI payments are also not taxed by Ohio.
- If you file an Ohio state tax return, you do not report Social Security as taxable income on that return.
How the federal government taxes Social Security differently
While Ohio leaves your Social Security alone, the IRS taxes it based on what the federal government calls "combined income." Combined income is your adjusted gross income plus nontaxable interest plus half of your Social Security benefits. If your combined income exceeds certain thresholds, a portion of your benefits becomes taxable at the federal level.
The thresholds are $25,000 for a single filer and $32,000 for married filing jointly. These numbers have not changed since 1984. If your combined income falls below these amounts, you owe no federal tax on your Social Security. If it exceeds them, up to 50 percent or 85 percent of your benefits may be taxable, depending on how far over the threshold you go.
This federal tax applies to you regardless of where you live. Ohio's decision not to tax Social Security does not change what you owe to the IRS.
What counts as income for the federal threshold
Combined income includes wages, self-employment income, pensions, interest, dividends, capital gains, and rental income. It also includes income from retirement accounts like IRAs and 401(k)s if you withdraw money. Nontaxable interest from municipal bonds counts too.
Some income does not count toward the threshold. For example, Supplemental Security Income (SSI) does not count. Neither does workers' compensation or certain veterans' benefits. If you are unsure whether a specific income source counts, the IRS worksheet in Publication 915 walks through the calculation step by step.
How to report Social Security on your Ohio tax return
When you file your Ohio state return, you do not report Social Security benefits as income. Ohio's tax forms do not have a line for it. If you use tax software, it will not ask you to enter Social Security as taxable income for Ohio purposes.
You still file a federal return if your income requires it, and that return will include the Social Security calculation if any of your benefits are taxable. But your Ohio return is simpler on this point — Social Security does not appear as a taxable item.
Other Ohio tax breaks for retirees and older adults
Beyond Social Security, Ohio offers a few other tax benefits. Pension and annuity income from a may have access to source may be excluded from Ohio taxable income, though the rules are specific about what qualifies. Military pensions, for example, receive special treatment. Public employee pensions also have exclusions in some cases.
Ohio also allows a tax credit for people age 65 and older with limited income, though the income limits are low. The credit is small but may help if you have very modest total income. Your tax preparer or the Ohio Department of Taxation can tell you whether you meet the requirements.
What to do if you receive both Social Security and other retirement income
If you have Social Security plus a pension, 401(k) withdrawals, or other income, your federal tax situation becomes more complex because of the combined income calculation. You may owe federal tax on part of your Social Security even though Ohio will not tax it.
For Ohio purposes, you report only the non-Social Security income. For federal purposes, you use the combined income worksheet. Many people in this situation find it useful to work with a tax preparer who understands the Social Security taxation rules, because small changes in the timing of withdrawals or other income can shift how much of your benefits become taxable.
Frequently Asked Questions
Do I have to file an Ohio tax return if I only receive Social Security?
No. If Social Security is your only income, you have no Ohio tax filing requirement. Ohio does not tax it, so there is nothing to report. You may still want to file a federal return to claim certain credits, but that is a separate decision.
What if I moved to Ohio from another state that does tax Social Security?
Once you establish residency in Ohio, you are subject to Ohio's tax rules going forward. You will not owe Ohio tax on Social Security received after you move. Your previous state's tax situation does not carry over, but you may need to file a part-year return in both states for the year you moved.
Does Ohio tax SSI payments?
No. Supplemental Security Income (SSI) is not taxed by Ohio or the federal government. SSI is a needs-based program separate from Social Security, and it is specifically excluded from taxation.
If the federal government taxes my Social Security, do I pay Ohio tax on that taxable portion?
No. Even if part of your Social Security is taxable at the federal level, Ohio does not tax any of it. The two tax systems are independent. Federal taxation of Social Security does not trigger Ohio taxation.
Where can I find more information about federal Social Security taxation?
The IRS publishes Publication 915, which explains the combined income calculation and includes worksheets. You can also contact the Social Security Administration directly, or work with a tax preparer who handles Social Security taxation regularly.