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Capital Gains Tax in Ohio
By Priya Raman
Ohio's rate has been sliding down; here's where it landed.
Ohio's rate has been sliding down; here's where it landed.
Ohio has trimmed its top income tax bracket several times over the past few years, and capital gains ride along with whatever that top bracket happens to be. At 3.50% state on top of the federal 20% and 3.8% NIIT, the combined ceiling on an investment property sale runs to 27.3%.
Ohio taxes capital gains as ordinary income, so there's no separate long-term rate to look up: whatever bracket the gain lands you in state-side is what applies, up to 3.50%. Combined with federal, sellers of investment property are looking at up to 27.3% total.
Take a hypothetical $250,000 gain on an Ohio investment property. At the 27.3% combined ceiling, that works out to roughly $68,250 owed between federal and state, before any credits or adjustments specific to the seller. Actual liability depends on income, basis, and depreciation recapture, so treat this as a rough sketch, not a quote.
Reinvest the full proceeds into a qualifying replacement property through a 1031 exchange and that $68,250 estimate doesn't come due this year. Map out the swap in the 1031 exchange calculator and keep the 45- and 180-day clock from the timeline calculator close at hand; Ohio deals move on the same federal deadlines.