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Taxes
Ohio Payroll Taxes 2026: Complete Overview for Employers
Ohio graduated 0%–3.75% (+ municipal income taxes) income tax, SUI on the first $9,000, and all employer tax obligations explained.
Practical guides on OH payroll taxes, employer registration, SUI, minimum wage, and labor laws — written for small business owners, not accountants.
Written by payroll professionals at Pacific Data Services — trusted since 1969.
Ohio’s income tax tops out at just 3.75%, with the first ~$26,050 of income completely exempt from state tax.
Many Ohio cities and villages levy their own income taxes (typically 1%–3%), adding significant complexity to payroll processing.
Ohio’s $9,000 SUI wage base keeps base unemployment insurance costs low, though the maximum rate can reach 8.50%.
Ohio graduated 0%–3.75% (+ municipal income taxes) income tax, SUI on the first $9,000, and all employer tax obligations explained.
Get your EIN, register with Ohio, set up withholding, new hire reporting — the complete checklist.
New employer rate 2.7%, experienced range 0.30%–8.50%, wage base $9,000.
Ohio minimum wage $10.65/hr. Ohio’s minimum wage is $10.65/hr, adjusted annually for inflation. Tipped employees may be paid $5.35/hr.
IRS classification rules, Ohio-specific considerations, misclassification penalties.
Gusto vs Paychex vs QuickBooks vs ADP — detailed comparison for Ohio small businesses.