FAQs - Individual Income Tax

How is my Ohio individual income tax calculated?

Ohio’s individual income tax is calculated on form IT 1040 and its supporting schedules. The steps to calculating your tax liability are as follows:

  • Begin with your federal adjusted gross income (Ohio IT 1040, line 1). This is typically calculated on your federal 1040.
  • Add and/or deduct the various items listed on Ohio Schedule A. This is your Ohio adjusted gross income (Ohio IT 1040, line 3).
  • Subtract your personal and dependent exemptions (if any). This is your Ohio income tax base (Ohio IT 1040, line 5).
  • Calculate your taxable business income (Ohio IT 1040, line 6) using Schedule IT BUS (if applicable).
  • Calculate your taxable nonbusiness income (Ohio IT 1040, line 7) by subtracting your taxable business income from your Ohio income tax base.
  • Calculate your nonbusiness income tax liability (Ohio IT 1040, line 8a) and your business income tax liability (Ohio IT 1040, line 8b). Add these amounts to calculate your income tax liability before credits (Ohio IT 1040, line 8c).
  • Deduct your nonrefundable credits, if any, using the Ohio Schedule of Credits. This is your tax liability (Ohio IT 1040, line 10).

You would then apply any withholding, payments, and/or refundable credits to determine your tax due or refund.

Note: Your federal adjusted gross income includes most sources of income that are taxable to Ohio. It is unnecessary to add or deduct any amounts on your Ohio return that are not listed on Ohio Schedule A.

To determine how to calculate your school district income tax, see the FAQ “How is the school district tax calculated?” found in the “Income – School District” category.

See R.C. 5747.01(A), 5747.02(A) and 5747.98.