Does Ohio Tax Retirement or Pension Income in 2025?

If you’re planning for retirement, you may be thinking about Ohio and if it taxes retirement or pension income. The answer isn’t a simple yes or no. While some retirement income is taxed in Ohio, the state offers tax breaks for certain types of income, including Social Security benefits and military pensions.

To help you navigate these tax rules, our Columbus CPAs break down how Ohio taxes different types of retirement income, what exemptions are available, and how you can minimize your tax burden.

How Ohio Taxes Retirement Income

Every state handles retirement income differently. Some states fully tax pensions and 401(k) withdrawals, while others provide full exemptions for retirees. Ohio falls somewhere in between.

The good news? Social Security benefits are completely tax-free in Ohio. The not-so-good news? Most pension and retirement account withdrawals are taxed as regular income—though tax credits can help offset some of that burden.

Does Ohio Tax Pension Income?

Public Pensions (OPERS, STRS, SERS, and Other Government Pensions)

Yes, Ohio taxes pensions from state and local government jobs, including:

Ohio Public Employees Retirement System (OPERS)
State Teachers Retirement System (STRS)
School Employees Retirement System (SERS)
Police, Firefighter, and Municipal Employee Pensions

However, retirees receiving these pensions may qualify for Ohio’s retirement income credit, which helps reduce state taxes.

Private Pensions

If you receive a private pension from an employer, Ohio considers this taxable income. But again, you may be eligible for state tax credits to help offset some of the cost.

Federal & Military Pensions

Military retirement income is 100% tax-exempt in Ohio. If you served in the armed forces, you won’t pay state taxes on your military pension.
Federal government pensions (such as those from the Civil Service Retirement System) are taxed, but some retirees may qualify for deductions.

Does Ohio Tax Social Security Benefits?

No. Ohio does not tax Social Security benefits.

Even though the federal government taxes Social Security for higher-income retirees, Ohio fully exempts it from state taxes. That means if Social Security is your main source of income, you may not owe much—if anything—in Ohio state taxes.

Retirement Tax Deductions & Credits in Ohio

Ohio offers a few tax breaks to help retirees keep more of their money:

Retirement Income Credit – If you receive retirement benefits from a qualified pension, you may be eligible for this credit, which reduces your taxable income.
Senior Citizen Tax Credit – Ohio taxpayers aged 65 and older can qualify for an additional tax credit.
Military Retirement Pay Deduction – If you’re a military retiree, you won’t pay any state taxes on your military pension.

These credits won’t eliminate taxes entirely, but they can reduce what you owe, especially if your income is moderate.

How Ohio’s Retirement Taxes Compare to Other States

If you’re considering whether to retire in Ohio, it helps to compare how the state taxes retirement income compared to others.

State	Taxes Social Security?	Taxes Pensions?	Retirement Tax Credits?
Ohio	No	Yes	Yes
Florida	No	No	No state income tax
Tennessee	No	No	No state income tax
Pennsylvania	No	No	Some deductions
New York	No	Yes	Partial pension exemption

Ohio isn’t the most tax-friendly state for retirees, but it does offer some key advantages, especially if Social Security is your main source of income or you’re a military retiree.

Smart Tax Strategies for Ohio Retirees

Even though Ohio taxes some forms of retirement income, there are ways to reduce what you owe:

Plan Your Withdrawals Wisely – Taking money out of your 401(k) or IRA too quickly can push you into a higher tax bracket. A financial advisor can help structure withdrawals strategically to minimize taxes.
Maximize Tax Credits – Don’t leave money on the table. Make sure you’re claiming all available deductions, like Ohio’s Retirement Income Credit.
Leverage Tax-Free Social Security – Since Ohio doesn’t tax Social Security, consider structuring your retirement income to rely more on Social Security and less on taxable pension income.

FAQs: Ohio Retirement Taxes

Does Ohio tax 401(k) and IRA withdrawals?

Yes, traditional 401(k) and IRA withdrawals are subject to Ohio state income tax. However, you may be eligible for credits to offset some of these taxes.

Is military retirement taxed in Ohio?

No, Ohio fully exempts military pensions from state income tax.

What tax benefits are available for retirees in Ohio?

Retirement Income Credit
Senior Citizen Tax Credit
No state tax on Social Security
No tax on military pensions

Which retirement income is completely tax-free in Ohio?

Social Security benefits
Military pensions
Some pension income (depending on tax credits)

Make the Most of Your Retirement with Smart Tax Planning

Understanding how Ohio taxes retirement and pension income can help you keep more of your money in retirement. With the right strategies—like taking advantage of tax-free Social Security, claiming credits, and structuring withdrawals wisely—you can minimize your state tax burden.

At Hogan CPA Financial Services, we help retirees optimize their tax strategies so they can enjoy their golden years without unnecessary tax stress.