Ohio tax guide
Ohio's business income deduction can wipe out state income tax on your self-employed earnings. City and school district taxes are the part that's easy to miss.
Published by Cadus Labs LLC · Last updated November 9, 2026 · How we write these guides
Based on Ohio Department of Taxation guidance on the business income deduction, estimated payments, and local taxes.
Ohio lets you deduct up to $250,000 of eligible business income if you file as single or married filing jointly, or up to $125,000 if you're married filing separately. Business income above that limit is taxed at a flat 3%.
For many self-employed people, that means little or no Ohio income tax on what they earn from their business.
Ohio says you should make estimated payments if your estimated Ohio tax, minus Ohio withholding, is more than $500. Paying 90% of this year's tax or 100% of last year's on time keeps you clear of the interest penalty.
The form is Form IT 1040ES, and you can generally pay online instead of mailing it.
| Payment due | Share of the year's required payment |
|---|---|
| April 15, 2026 | 25% |
| June 15, 2026 | 25% |
| September 15, 2026 | 25% |
| January 15, 2027 | 25% |
Many Ohio cities tax the net profits of businesses, and the business income deduction doesn't apply to them. Check with your city or its tax administrator.
Some school districts levy an income tax as well. Earned-income districts tax wages and self-employment income, and traditional districts use a broader measure of income. Ohio's school district lookup will tell you which applies to you.
Wherever you live, self-employed income is subject to federal income tax and self-employment tax. A single filer with $60,000 of net profit and no other income owes about $12,037 in federal tax for 2026, or 20% of profit, before any state or local tax.
Federal estimated payments are due April 15, June 15, and September 15, 2026, and January 15, 2027. Use our 1099 tax calculator to run your own numbers.
Calculator
Enter your 1099 income and business expenses to estimate self-employment tax, federal income tax, and what to set aside each quarter. No sign-up, and nothing you type is saved.
Calculator
Turn expected profit into a practical tax savings target, then use Cadus to keep income, expenses, deductions, receipts, and reports organized.
Template
Use this worksheet to turn expected monthly profit into a practical tax savings target before estimated tax due dates arrive.
Template
Copy this table to start organizing business purchases, receipt proof, categories, and business purpose before moving records into Cadus.
Self-employment tax guide
The self-employment tax rate is 15.3%. See who pays, how the 2026 wage base works, the deduction for half the tax, and a worked example.
Estimated tax guide
2026 estimated tax due dates, who has to pay, how to avoid the penalty, and a worked example for a self-employed worker earning $60,000.
Schedule C education
Every Schedule C expense line in plain English: what goes on each one, what doesn't, and the records to keep for self-employed workers.
Often very little. Up to $250,000 of eligible business income can be deducted if you file as single or married filing jointly, and business income above that is taxed at a flat 3%.
No. Ohio cities' net profit taxes are separate, so check with your city or its tax administrator.
Ohio says you should if your estimated Ohio tax, minus Ohio withholding, is more than $500.