Senior Tax Deductions in Ohio

Ohio seniors benefit from a state income tax exemption on Social Security, targeted tax credits for those with modest incomes, and property tax relief through an enhanced Homestead Exemption.

Income Tax Deductions & Credits

Ohio provides specific tax breaks for residents age 65 and older, primarily for those with a Modified Adjusted Gross Income (MAGI) under $100,000.

• Social Security Exemption: Ohio does not tax Social Security benefits, regardless of your total income level. To ensure these are not taxed, you must claim the deduction on the Ohio Schedule of Adjustments.
• Retirement Income Credit: Seniors receiving qualifying retirement income (pensions or annuities) can claim a credit of up to $200.
• Senior Citizen Credit: A non-refundable tax credit of $50 is available per return for individuals aged 65 or older.
• Military Retirement Pay: All military retirement benefits are fully exempt from Ohio state income tax.
• Lump Sum Credits: Seniors who received a total lump-sum distribution from a qualified plan may be eligible for a one-time Lump Sum Retirement Credit or Lump Sum Distribution Credit.

Property Tax Relief: Homestead Exemption

The Homestead Exemption allows eligible seniors to shield a portion of their home’s market value from property taxes.

• Benefit: Qualifying homeowners receive a reduction equal to the taxes on up to $28,000 of their home’s market value. Disabled veterans may qualify for an enhanced exemption of up to $56,000.
• Eligibility: You must be at least 65 years old by December 31, and own the home as your primary residence.
• Income Limit: For new applicants in 2025, total household income (MAGI) cannot exceed $40,000. Seniors enrolled before 2014 are typically exempt from this income test.

Federal Updates

Beyond state-specific benefits, the One Big Beautiful Bill (OBBBA) introduces a new federal Senior Bonus Deduction for 2025.

• $6,000 per person: Seniors 65+ can claim this additional deduction on top of the standard deduction.
• Total Federal Write-off: A single senior may deduct up to $23,750, and a married couple (both 65+) up to $46,700 for the 2025 tax year.