Ohio pay stubs: state, city and school district withholding

State income tax

Ohio finished moving to a single income tax rate in 2026. For the 2026 tax year, nonbusiness income above an exempt first bracket is taxed at a flat 2.75%, replacing the higher top bracket used in earlier years. The Ohio Department of Taxation updated its employer withholding formulas and tables to match.

Employees give their employer Form IT 4, which records exemptions and, importantly, the employee's school district of residence.

Local taxes

Local income tax is where Ohio differs from most states, and it often matters more than the state line.

• Municipal income tax. Most Ohio cities and many villages tax wages earned within their borders. Employers generally withhold for the city where the work is done, and some cities also tax their residents who work elsewhere, with credit rules that vary by city.
• School district income tax. Some school districts levy their own income tax. It is based on where the employee lives, not where they work, and employers must withhold it for employees who reside in a taxing district.

The Ohio Department of Taxation's online Finder tool at tax.ohio.gov lets you look up an address to see which city and school district taxes apply.

Other state payroll deductions

Ohio has no state disability insurance or paid family leave payroll deduction. Unemployment insurance is paid by employers rather than withheld from wages.

Federal withholding still applies

• Federal income tax according to the employee's Form W-4.
• Social Security at 6.2% up to the annual Social Security wage base.
• Medicare at 1.45%, with an extra 0.9% withheld on wages over $200,000.

Creating an Ohio pay stub with PayStubNest

Start a stub in PayStubNest, enter hours and an hourly rate or a salary, and select Ohio. The exact figures on each stub depend on the employee's pay, pay frequency, W-4 choices, deductions and year-to-date totals, and PayStubNest calculates all of it automatically: federal withholding, Ohio state tax and year-to-date totals that keep running across pay periods. Because city and school district taxes depend on exact addresses, confirm the local lines against the Finder before you finalize. Previews are free, and you only pay to download.

Record-keeping tip

Ohio asks employers to keep withholding records, including each employee's IT 4 and school district, for at least four years. Store each stub with the matching IT 4 so a change of address, and therefore of school district, is easy to trace. More help is in our guides and FAQ.