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Financial planning in Ohio

A flat-fee financial advisor serving Ohio.

A single 2.75% rate from 2026 with the first $26,050 untaxed, and Social Security never taxed.

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2026: $332 plus 2.75% of income over $26,050Ohio income tax, tax year 2026.
None since 2013Ohio estate tax.
$150–$1,650/qtrFlat quarterly memberships, no AUM fee, no annual commitment.
Minnetonka-basedA Minnesota firm serving Ohio households virtually; no Ohio office is claimed.

Direct answer

What Is Different About Financial Planning in Ohio?

Ohio's income tax reached a single rate in 2026: nothing on the first $26,050 of Ohio income after exemptions, then $332 plus 2.75% of the rest (in 2025, income above $100,000 was taxed at 3.125%). Social Security is deducted in full; pensions and IRA withdrawals are taxed, softened by small credits for households under $100,000. The estate tax was repealed for deaths from 2013. Municipal income taxes, 2.5% in Columbus, fall on wages and business income but not on Social Security, pensions or retirement-plan distributions. For a Columbus, Cincinnati or Cleveland household the state layer is small and the plan is mostly federal.

Ohio tax treatment

How Ohio taxes a planning household

Figures are for tax year 2026, each read from the source beside it. Thresholds and rates are revised regularly; confirm the current year before acting on any of them. What these rules change in a household’s plan, from the order accounts are drawn to the timing of Roth conversions, is set out in the retirement tax planning overview.

Income: 2026: $332 plus 2.75% of income over $26,050; 2025: 2.75% to $100,000, 3.125% above

House Bill 96, effective September 30, 2025, sets a single rate for tax years beginning in 2026: no tax on the first $26,050 of Ohio income after exemptions, then $332 plus 2.75% of the amount above it. For 2025 the schedule was $342 plus 2.75% of the excess over $26,050 up to $100,000 and $2,394.32 plus 3.125% above. Business income is taxed separately at a flat 3% after a $250,000 business income deduction.

Source

Retirement income: Social Security deducted in full; pensions and IRA withdrawals taxed, with small credits under $100,000

Social Security and tier I railroad retirement benefits are deducted in full. Pension, IRA, 401(k) and annuity income is taxed at the regular rates; a household whose Ohio modified adjusted gross income less exemptions is under $100,000 may claim a retirement income credit of up to $200 and a $50 senior citizen credit at 65. Municipalities administered by RITA list Social Security, pension, retirement-plan and IRA distributions as not taxable.

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Estates: None since 2013

Ohio repealed its estate tax for deaths on or after January 1, 2013 and administers no inheritance tax; no tax release or inheritance-tax waiver is required to transfer a decedent's assets. Only the federal exclusion applies.

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Worth doing here

Planning opportunities specific to Ohio

Things that are worth doing in Ohio that would not be worth doing, or would work differently, somewhere else.

The Ohio 529 deduction, with unlimited carryforward

Any Ohio taxpayer who contributes to an Ohio CollegeAdvantage 529 plan, not only the account owner, may deduct up to $4,000 per beneficiary per year, and contributions above that carry forward to later years until used. A grandparent front-loading $20,000 for one grandchild deducts $4,000 a year for five years.

Source

Income above $100,000 is taxed less from 2026

The 3.125% rate on income above $100,000 became 2.75% for tax years from 2026, so deferrable income (a conversion, a bonus, a large withdrawal) that lands in 2026 rather than 2025 saves 0.375 points of Ohio tax. Federal brackets and Medicare tiers usually matter more; treat this as a tiebreaker.

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Social Security on top of the untaxed first $26,050

Because Social Security is deducted entirely and no tax applies to the first $26,050 of remaining Ohio income after exemptions, a retired couple living on Social Security and modest IRA withdrawals can owe Ohio nothing. Withdrawals that push Ohio income just past $26,050 trigger the fixed $332 plus 2.75% of the excess, so filling but not exceeding that zero bracket each year is the target for smaller households. Municipal income tax does not reach retirement distributions.

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Federal and state, together

How Ohio Tax Interacts With Your Federal Return

At 2.75% Ohio income tax is small relative to the federal deduction cap; property tax is usually the larger item, and for most households the cap does not bind. Municipal income taxes are deductible as state and local taxes within the same cap.

The federal deduction for state and local taxes is $40,400 for tax year 2026 and begins to shrink above $500,000 of modified adjusted gross income, down to a floor of $10,000, and is scheduled to return to $10,000 after 2029. The federal estate tax exclusion is $15,000,000 per person for deaths in 2026. IRS, Instructions for Schedule A (2025), line 5e; IRS, tax year 2026 inflation adjustments (Rev. Proc. 2025-32).

Cities

Where we work with Ohio households

Each city page covers what is local — how households there tend to be paid, what the first meeting usually covers — and inherits this state layer.

Columbus, OH

Columbus is paid by Nationwide's headquarters, by Cardinal Health, Huntington and Bath & Body Works, by JPMorgan's very large Columbus workforce, by The Ohio State University and its medical center, and by state government.

Columbus planning

Cincinnati, OH

Cincinnati is headquarters to Procter & Gamble, Kroger, Fifth Third and GE Aerospace, and home to Cincinnati Children's and UC Health, so its households are unusually likely to hold restricted stock and a pension at one large public employer after a long career.

Cincinnati planning

Cleveland, OH

Cleveland is paid by the Cleveland Clinic and University Hospitals, two of the largest health systems in the country, and by a set of public headquarters that includes Sherwin-Williams, Progressive, KeyCorp, Eaton and Parker Hannifin.

Cleveland planning

Watch and learn

Financial Planning, Explained Clearly

Start with three videos selected for this page, then use the controls to explore every published Flames FP video guide.

Videos 1–3 of 14

Common questions

Ohio Financial Planning Questions

Does Ohio tax Social Security?

No. Social Security and tier I railroad retirement benefits are deducted in full.

What is Ohio's income tax rate for 2026?

A single rate: no tax on the first $26,050 of Ohio income after exemptions, then $332 plus 2.75% of the amount above it. In 2025 income above $100,000 was taxed at 3.125%.

Is there an Ohio estate tax?

No. It was repealed for deaths on or after January 1, 2013, and Ohio has no inheritance tax.

Does Flames Financial Planning have an office in Ohio?

No. Flames Financial Planning is based in Minnetonka, Minnesota, and serves Ohio households through a virtual planning relationship. This page describes the service area and does not claim a Ohio office.

Is Ohio tax planning part of the relationship?

Yes. State tax treatment shapes withdrawal order, Roth-conversion timing, and where investments are best held. Planning includes tax guidance and review of a completed return; Premier adds tax projections and preparation and filing through an independent tax partner.

Next step

See what a flat-fee relationship would cost a Ohio household.

A discovery meeting covers your situation, what you pay now, and whether a fixed quarterly membership is a better fit.

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