Ohio Tax Guide for Employers (2026) 

Ohio has a graduated state income tax and is also known for its extensive network of local income taxes. Many Ohio cities and school districts levy their own income taxes, making Ohio one of the most complex states for local-level payroll tax compliance. 

Ohio’s graduated income tax uses brackets where higher income levels are taxed at progressively higher rates. Employees complete Form IT 4 with their total withholding exemptions (each worth $650 in deduction value). Ohio also has approximately 600 municipalities and school districts that may levy local income taxes, making it critical to track employee work and residence locations. 

Ohio supports the following supplemental calculation methods. Supplemental wages such as bonuses and commissions will be calculated using the applicable method. 

Your assigned SUTA rate will be based on your company’s experience with unemployment claims. New employers typically start at the default rate of 2.7%. 

Ohio has over 700 municipal income taxes (RITA, CCA, etc.) and school district income taxes (SDIT). Employers must withhold municipal tax for the employee’s work location.

Follow these steps to begin withholding Ohio payroll taxes for your employees: 

1. Obtain your Federal EIN at irs.gov
2. Register with the Ohio Department of Taxation at tax.ohio.gov
3. Register for SUTA with the Ohio Department of Job and Family Services at jfs.ohio.gov
4. Register with applicable municipalities for local income tax withholding
5. Submit a Netchex tax team request to enable Ohio SIT, municipal taxes, SDIT, and SUTA
6. Have each employee complete their tax forms with an automated onboarding task in Netchex, digitally storing tax forms
7. Configure any additional tax settings in the employee profile

Once setup is complete in Netchex, the system will automatically calculate, withhold, and remit all Ohio payroll taxes on your behalf. 

The following are general filing and deposit deadlines for Ohio payroll taxes. Deadlines may vary based on your employer size and deposit frequency. Always verify current schedules at OhioDepartment of Taxation. 

Note: Deadlines are subject to change. Always confirm current requirements directly with Ohio Department of Taxation at https://tax.ohio.gov/employer-withholding. 

The following official resources will help you stay current on Ohio payroll tax requirements: 

• Ohio Department of Taxation
• Ohio Department of Taxation — Withholding
• Ohio School District Tax Finder

What are Ohio school district income taxes (SDIT)? 

Ohio has over 700 school districts that may impose a local income tax (SDIT). Employees living in a taxing school district have additional withholding requirements. 

What form do Ohio employees complete? 

Employees complete Ohio Form IT-4, the Employee’s Withholding Exemption Certificate. 

What is Ohio’s top income tax rate? 

Ohio’s top marginal income tax rate is 3.5%. 

What is Ohio’s SUTA wage base? 

Ohio’s SUTA wage base is $9,000 per employee per year. Verify at jfs.ohio.gov. 

Does Ohio have municipal income taxes? 

Yes. Most Ohio municipalities impose a local income tax. The rate and rules vary by city. Columbus is 2.5%, Cleveland is 2.0%, etc.