Last updated: July 27th, 2026
Important Update
Effective August 1, 2026, Ohio updated its employer income tax withholding formulas and tax tables to align with lower 2026 individual income tax rates. The highest percentage-method withholding rate is now 3.4% (previously 3.64%). Supplemental compensation such as bonuses and commissions is withheld at a flat rate of 2.75%. Employers must use the new tables for all payroll periods ending on or after August 1, 2026.
Each state has unique income tax withholding rules. Below are Ohio's 2026 withholding instructions, including allowance calculations, standard deduction adjustments, and the percentage method for determining tax due.
Employers must also adhere to federal income tax withholding rules. More information can be found here about federal rates.
Alternatively, employers can automatically calculate payroll withholding by using ezPaycheck.
| State Abbreviation | OH |
|---|---|
| State Tax Withholding State Code | 39 |
| Acceptable Exemption Form | IT-4 |
| Basis For Withholding | State Exemptions |
| Acceptable Exemption Data | 0 / Number of Exemptions |
| TSP Deferred | Yes |
| Special Coding | Determine the Total Number Of Allowances field as follows: First Position - Enter 0 (zero). Second and Third Positions - Enter the total number of exemptions claimed. |
| Additional Information | None |
| Official State Tax Website | Visit Official Website |
Ohio's IT-4 allows claiming personal and dependent exemptions in line with Ohio's personal exemptions. An employee can claim 1 for themselves, 1 for a spouse, and 1 for each dependent to be claimed on the Ohio return. Ohio does not grant additional withholding allowances for age or blindness on the IT-4, even though the tax return provides a senior credit - those are handled via credits, not by increasing allowances. Filing status (e.g., married vs single) does not change the number of allowances but does affect the tax rate bracket applied.
| Component | Allowances | Notes |
|---|---|---|
| Yourself | 1 exemption | Base exemption |
| Spouse | 1 exemption | If filing jointly |
| Each Dependent | 1 exemption | Per dependent to be claimed on Ohio return |
Total Exemptions = Yourself + Spouse + Dependents
Ohio does not grant additional withholding allowances for age or blindness on the IT-4. Senior credits are handled on the tax return, not via the withholding form.
For links to official state tax and revenue websites for all 50 states, visit our State and Local Tax Sites page.
Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program, and flexible spending account - health care and dependent care deductions) from the amount computed in step 1.
Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
Multiply the adjusted gross biweekly wages times 26 to obtain the annual wages.
Determine the exemption allowance by applying the following guideline and subtract this amount from the gross annual wages to compute the taxable income.
Exemption Allowance = $650 × Number of Exemptions
Apply the taxable income computed in step 3 to the following table to determine the Ohio tax withholding.
Divide the annual Ohio tax withholding by 26 to obtain the biweekly Ohio tax withholding.
Want to calculate in an easier way? Learn how to calculate Ohio taxes via ezPaycheck below.
Learn More| Withholding Allowance | Annual Amount |
|---|---|
| Lump sum withholding allowance | $0 |
| For each allowance | $650 |
Formula: $650 per exemption
Applies to payroll periods ending on or after August 1, 2026. Prior rates (1.775%, 2.99%, 3.64%) apply through July 31, 2026.
| If Taxable Income Is | Tax Withholding | ||||
|---|---|---|---|---|---|
| Over | But Not Over | Base | + | Rate | Of Excess Over |
| $0 | $26,050 | $0 | + | 1.60% | $0 |
| $26,050 | $100,000 | $417 | + | 2.99% | $26,050 |
| $100,000 | and over | $2,628 | + | 3.40% | $100,000 |
ezPaycheck simplifies payroll calculations, including Ohio's withholding rules. Easily compute taxes, generate reports, and print paychecks or tax forms.
We strive to provide accurate and up-to-date Ohio state tax information for 2026. If you notice any discrepancies, errors, or have questions about the tax rates or calculations shown on this page, please contact our support team. We appreciate your feedback and will review and update the information as needed.
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