Mostly taxed
How Ohio taxes retirement income
Ohio does not tax Social Security. Pensions are taxed, including STRS Ohio, OPERS, SERS and police and fire pensions, along with withdrawals from 401(k), 403(b), 457(b) and IRA accounts.
Ohio softens this with small credits rather than exclusions. The retirement income credit is worth up to $200 per return for households with income under $100,000, and a separate senior citizen credit applies at 65 and older. These help, but they are small next to a typical public pension.
Ohio’s rate is low. Since 2025 the state taxes income above $26,050 at a flat 2.75%, and income below that line is not taxed. Many Ohio cities and school districts charge their own income tax, but most do not tax pensions or retirement account withdrawals.
Ohio public pensions
For the formula, payment dates and raises in your plan, see STRS Ohio and Ohio PERS.
Questions
Does Ohio tax STRS Ohio pensions?
Yes. Teacher pensions are taxed at 2.75% on income above $26,050, with a small retirement income credit.
Does Ohio tax Social Security?
No. Social Security is fully exempt.
Do Ohio cities tax my pension?
Generally no. Municipal income taxes apply to wages and business income, not pensions or IRA withdrawals.