Does Ohio Tax Social Security? What Columbus Retirees Should Know

Does Ohio Tax Social Security?

If you are planning retirement in Columbus, Ohio, one of the most common questions is:

Does Ohio tax Social Security benefits?

The answer is clear:

No. Ohio does not tax Social Security benefits at the state level.

However, retirement income planning is rarely that simple. While Social Security is exempt from Ohio state income tax, pensions, IRA withdrawals, and other income sources are taxable — and federal taxation rules still apply.

Understanding how these pieces fit together is essential for retirees in Central Ohio.

Social Security Is Exempt From Ohio State Income Tax

Ohio fully exempts Social Security benefits from state income taxation.

This applies:

• Regardless of income level
• Regardless of filing status
• Whether Social Security is your primary or supplemental income

This exemption makes Ohio more favorable than some states that tax benefits partially or fully.

For reference, you can review federal benefit rules through the Social Security Administration.

Federal Taxes May Still Apply

While Ohio does not tax Social Security, the federal government may tax up to:

• 50% of benefits at moderate income levels
• 85% of benefits at higher income levels

Taxability depends on “combined income,” which includes:

• Pension income
• Traditional IRA withdrawals
• 401(k) distributions
• Capital gainsOther taxable income

Guidance on federal treatment is available from the Internal Revenue Service.

For many retirees in Columbus, federal tax exposure is determined by how retirement accounts are coordinated.

Pensions and IRA Withdrawals Are Taxable in Ohio

Although Social Security is exempt, most other retirement income is taxable under rules administered by the Ohio Department of Taxation.

In Ohio:

• Pension income is taxable
• Traditional IRA withdrawals are taxable
• 401(k), 403(b), and 457(b) withdrawals are taxable
• Required Minimum Distributions (RMDs) are taxable

Ohio offers limited retirement income credits, but they phase out at higher income levels.

For retirees with substantial public or corporate pensions — common in Columbus — withdrawal strategy becomes a major factor in long-term tax efficiency.

Medicare Premiums Add Another Layer of Planning

Medicare premiums are income-based.

Higher income from:

• IRA withdrawals
• Pension income
• Capital gains

can trigger IRMAA (Income-Related Monthly Adjustment Amount) surcharges.

Medicare guidance can be reviewed through the Centers for Medicare & Medicaid Services.

Because Social Security benefits are often used to pay Medicare premiums automatically, tax planning and healthcare planning must be coordinated together.

Why Timing Social Security Matters

The decision of when to claim Social Security impacts:

• Lifetime guaranteed income
• Federal tax exposure
• Medicare premiums
• Spousal and survivor benefits

Claiming early locks in lower monthly benefits permanently.

Delaying benefits increases guaranteed income and may create lower-income years ideal for Roth conversions.

For retirees in Columbus, this decision should be evaluated in the context of total retirement income — not in isolation.

Why This Matters for Columbus Retirees

Columbus has a high concentration of retirees with:

• Public pensions
• Healthcare and university employment benefits
• Significant IRA balances
• Appreciated real estate

Without coordinated planning, retirees may:

• Overpay federal taxes
• Pay unnecessary Ohio state income taxes
• Trigger higher Medicare premiums
• Miss Roth conversion opportunities

Retirement income planning is about integration — not just tax rates.

Plan Your Social Security Strategy With Confidence

Claiming Social Security is not simply choosing an age — it is a long-term tax and income coordination decision.

If you live in Columbus, Ohio and are:

• Within 5–10 years of retirement
• Already retired and reviewing income strategy
• Coordinating a pension and IRA withdrawals
• Concerned about minimizing taxes

A structured retirement income plan can materially improve your lifetime outcome.

Blue Advisors is a fee-only financial planning firm based in Columbus, Ohio, specializing in retirement income and tax coordination.

👉 Schedule a complimentary consultation to review your Social Security and retirement income strategy.

Frequently Asked Questions

Does Ohio tax Social Security benefits?

No. Ohio does not tax Social Security benefits at the state level. However, federal income tax may apply depending on your total retirement income.

Are pensions taxable in Ohio?

Yes. Pension income is taxable in Ohio. Some retirees may qualify for a retirement income credit, depending on income level.

Are IRA withdrawals taxable in Ohio?

Yes. Withdrawals from traditional IRAs and 401(k) plans are subject to both federal income tax and Ohio state income tax.

Is retirement income taxable in Columbus, Ohio?

Columbus follows Ohio state income tax rules. While Social Security benefits are exempt from Ohio tax, pensions and traditional retirement account withdrawals are taxable.

By James Blue, Fee-Only Advisor | Blue Advisors

James Blue is the founder of Blue Advisors, a fee-only financial planning and investment management firm based in Columbus, Ohio.

This content is provided for informational and educational purposes only and should not be construed as personalized investment, tax, or legal advice. The views expressed are those of the author as of the date published and are subject to change without notice. Blue Advisors is a fee-only registered investment advisory firm. Advisory services are offered only pursuant to a written advisory agreement and to clients in the State of Ohio, the Commonwealth of Pennsylvania, and other jurisdictions where Blue Advisors is properly registered or exempt from registration. Past performance is not indicative of future results. Readers should consult with their financial advisor, tax professional, or attorney before making financial decisions.