The Ohio bonus tax calculator at the top of this page helps employers quickly estimate employee take-home pay (also known as net pay) for bonuses.
Behind the numbers
Behind the numbers
Updated: July 11, 2025
Does Ohio tax bonuses?
Yes. Ohio taxes bonuses as part of an employee’s regular income and requires employers to withhold both state and local income tax when applicable. For supplemental wages such as bonuses, commissions, and nonrecurring payments, employers may use a flat state withholding rate of 3.5% or higher, or calculate withholding based on the employee’s total wages using Ohio’s standard tax tables.
How to calculate bonus tax in Ohio
Bonuses may be taxed using a flat 3.5% state withholding rate, plus any applicable local taxes, if paid separately. Employers can also use the aggregate method if preferred.
What is the bonus tax rate in Ohio?
State rate: up to 3.75%, local: varies widely (some over 2.5%)
How can employers in Ohio pay bonuses to employees?
Bonuses can be paid via:
- Check
- Direct deposit
- Pay card
How do bonuses work in Ohio?
Employers must include bonuses in total income, apply state/local withholding, and report on Form W-2.
Why are bonuses taxed differently than standard pay?
They aren’t always — but if a bonus is paid separately, employers may apply a flat 3.5% state rate instead of using the standard income tax tables.
How much tax is taken out of a bonus in Ohio?
- Federal: 22%
- State: Flat 3.5% or calculated by wage bracket
- Local: Varies by location (commonly 1%–2.5% or more)
- Combined: As much as 28.25%, depending on locality