Ohio

Moving from Minnesota to Ohio would LOWER your total state and local tax burden from 12.1% of income to 10.0% of income — a drop of -2.1 pts. On a $100K household budget, that is roughly 2100 in annual savings across income, sales, property, and other taxes combined.

Ohio top marginal income tax rate is 3.5%, versus 9.85% in Minnesota. Compare across your expected income bracket — top rates kick in at different thresholds in each state.

Ohio state sales tax is 5.75%. With average local add-ons, the combined rate is 7.24%. This applies to most retail purchases but rules on groceries, prescriptions, and services vary.

Ohio median effective property tax rate is 1.30% of home value. On a $400,000 home, that is roughly $5,200/year. Property tax typically funds schools, municipalities, and county services — rates vary sharply within a state by school district.

Ohio has NO state estate tax and NO state inheritance tax. Heirs are subject only to federal estate tax (over $13.99M in 2025). This is favorable for wealth transfer.

In Ohio: Social Security is not taxed. Pensions and 401(k)/IRA withdrawals are partially taxed.

Ohio capital gains treatment: Taxed as regular income up to 3.5%. Compare to federal long-term capital gains rates (0%, 15%, or 20%) — some states offer preferential treatment for long-term holdings, while others tax capital gains as ordinary income.

Ohio gas tax is 38.5¢/gal — 7.2¢/gal higher than Minnesota's 31.3¢/gal. For a 15,000 mile/year driver getting 25 mpg, each 1¢/gal of gas tax = about $6/year.

Ohio allows local income, occupational, or earnings taxes. 600+ municipalities and school districts levy local income taxes (RITA). Typical rates 1.0-3.0%. Heavy compliance burden for multi-city workers. These are often overlooked but can add 1–3% to your effective rate.

Ohio residency rules: Domicile + 213-day abode-day test. Complex 'contact period' rules. To establish residency for tax purposes, typical steps include: update driver's license and vehicle registration, register to vote, file a homestead declaration, close home-state bank accounts where possible, and spend clearly more than 183 days in your new state. If your former state is aggressive (e.g., CA, NY, NJ, OR), keep documentation of every day spent in each state.

Ohio recent tax law changes: Top rate reduced to 3.5% for 2024 (from 3.75%). Ohio Business Income Deduction continues at $250K.

For the most current tax information in Ohio, visit the official source at https://tax.ohio.gov/. Tax laws change annually; verify rates and rules before making a permanent move. Consult a CPA for advice specific to your situation.