Ohio Payroll Compliance
Every rate, wage base, and local tax layer Ohio employers need for 2026 — sourced from the Ohio Dept. of Taxation, ODJFS, and RITA — including the new flat state rate and the 600+ municipal income tax jurisdictions that make Ohio one of the most complex local-tax states in the country.
Minimum Wage & Hours
Ohio’s minimum wage for non-tipped employees at larger employers is $11.00/hour for 2026, adjusted annually by CPI. Employers with annual gross receipts at or below $405,000 and all 14–15-year-old workers remain at the federal $7.25 floor.
| Item | 2026 Value | Notes |
|---|---|---|
| Standard minimum wage | $11.00/hr | Employers with >$405,000 gross receipts |
| Tipped cash wage | $5.50/hr | Tips must bring total to $11.00; if not, employer pays the difference |
| Small employer / youth rate | $7.25/hr | ≤$405,000 gross receipts or ages 14–15 |
| Overtime rule | 40 hrs/week | Federal FLSA; no state daily overtime trigger |
Municipal Income Tax
Ohio’s real payroll complexity lives at the local level. Over 600 municipalities levy their own income tax on wages, at rates from 0.5% to 3.0%. Employers must track where each employee physically works (and where they live), register with each city’s collector (often RITA or CCA), and file separate local returns.
| City | 2026 Rate | Notes |
|---|---|---|
| Columbus | 2.50% | CCA-collected; largest city by payroll volume |
| Cleveland | 2.50% | CCA-collected |
| Cincinnati | 1.80% | City-collected |
| Dayton | 2.50% | RITA-collected |
| Akron | 2.50% | City-collected |
State Income Tax Withholding
For 2026, Ohio collapsed its remaining brackets into a single flat 2.75% rate on nonbusiness income above $26,050 — a dramatic simplification from the nine-bracket system that existed just a few years ago. Income at or below $26,050 is exempt from state tax entirely.
| Item | 2026 Value | Notes |
|---|---|---|
| State rate | 2.75% flat | On income above $26,050; 0% below that threshold |
| Personal exemption | $2,450 | Per exemption claimed on Form IT 4 |
| Required certificate | Form IT 4 | Also determines school district tax withholding |
| School district income tax | 0.25% – 2.0% | ~210 districts; based on residence, not work location |
| Local income tax | 0.5% – 3.0% | 600+ jurisdictions; based on work location primarily |
| Reciprocity | IN, KY, MI, PA, WV | Residents of these states may be exempt from Ohio withholding |
Paid Leave
Ohio has no state disability insurance, no paid family or medical leave, and no statewide paid sick leave mandate. Federal FMLA is the only job-protected leave baseline.
Unemployment Insurance (SUI)
Ohio’s SUI wage base rose to $9,500 for 2026, up from $9,000. ODJFS assigns new employers an initial 2.7% rate before moving to experience rating.
| Item | 2026 Value | Notes |
|---|---|---|
| SUI taxable wage base | $9,500 | Up from $9,000 in 2025 |
| New employer rate | 2.7% | Standard initial rate |
| Experienced range | 0.3% – 8.5% | Based on claims history |
| Administering agency | ODJFS | Ohio Dept. of Job and Family Services |
Official Ohio .gov Resources
Verify every figure and register for accounts at the source.