Ohio does not tax Social Security Disability Insurance (SSDI) benefits

Ohio has no state income tax on SSDI. This means your federal SSDI payments are not subject to Ohio state tax, regardless of how much you receive or what other income you have. If you live in Ohio and receive SSDI, you will not owe state tax on those benefits.

This is different from the federal tax treatment. The federal government may tax SSDI depending on your total income—but Ohio does not participate in that taxation at the state level. The distinction matters because it simplifies your Ohio tax filing: you exclude SSDI from your Ohio taxable income entirely.

Key Takeaways

  • Ohio imposes no state income tax on SSDI benefits, so you report zero SSDI income to Ohio.
  • This applies to all SSDI recipients in Ohio, regardless of age, income level, or marital status.
  • Federal taxation of SSDI is separate from state taxation and follows different rules based on your combined income.
  • If you work and receive SSDI, your wages are still subject to Ohio state tax, but your SSDI portion is not.

How this differs from federal tax treatment

The federal government taxes SSDI if your combined income exceeds certain thresholds. Combined income includes your SSDI, wages, interest, dividends, and other sources. If you are single and your combined income exceeds $25,000, up to 50 percent of your SSDI may be taxable federally. If you are married filing jointly, the threshold is $32,000.

Ohio does not use these thresholds. Ohio straightforward does not tax SSDI at all. So even if the IRS taxes your SSDI federally, you will not owe Ohio state tax on it. This is one of the few ways Ohio tax law is simpler than federal law for SSDI recipients.

What you report on your Ohio tax return

When you file an Ohio state income tax return (Form IT 1040 or IT 1040-SR), you do not include SSDI in your income. If you have other income—wages, self-employment income, interest, or pensions—you report those. But the SSDI line stays blank or zero.

You will still receive a Social Security Benefit Statement (Form SSA-1099-SM) from the Social Security Administration each January. This form shows your SSDI for the year. You use it to calculate federal taxes, but you do not transfer that amount to your Ohio return. Keep the form for your records in case Ohio asks about your income sources, but the SSDI itself is not taxable in Ohio.

If you work while receiving SSDI

Work incentives allow you to earn wages while on SSDI without losing your entire benefit. In Ohio, your wages are subject to state income tax, but your SSDI is not. This means you may owe Ohio tax on your earnings even though your SSDI remains untaxed.

For example, if you earn $15,000 in wages and receive $12,000 in SSDI in a year, you report the $15,000 to Ohio and pay state tax on it. The $12,000 SSDI is not reported. Your federal tax situation is separate and may be different, depending on your combined income threshold.

Other income sources and Ohio tax

SSDI is not the only benefit that Ohio does not tax. Ohio also does not tax federal pensions, military pensions, or railroad retirement benefits. However, Ohio does tax interest, dividends, capital gains, and most other forms of income. If you receive SSDI plus a pension or other income, only the non-SSDI portions are subject to Ohio tax.

If you are unsure whether another income source is taxable in Ohio, check the instructions for Form IT 1040 or contact the Ohio Department of Taxation. The department publishes annual tax guides that list what is and is not taxable in the state.

Filing requirements if you receive SSDI in Ohio

You must file an Ohio state tax return if your income (excluding SSDI) meets the threshold for your filing status. For 2024, the threshold for a single filer is $1,250 in Ohio taxable income. If your only income is SSDI, you do not have to file. If you have wages, self-employment income, or other taxable sources, you may need to file even if your total is modest.

Filing is also required if you want to claim the Ohio Earned Income Tax Credit (EITC) or other refundable credits. Even if you do not owe tax, filing may result in a refund. Since SSDI is not counted as income for these purposes, your may be able to access depends on your other earnings.

Frequently Asked Questions

Will Ohio tax my SSDI if I move to Ohio from another state?

No. Ohio's tax treatment of SSDI applies to all residents, regardless of when they moved to the state. Once you are an Ohio resident, your SSDI is not taxed by Ohio. If you moved from a state that does tax SSDI, you will see a change in your state tax burden.

Do I have to report my SSDI to Ohio even though it is not taxed?

You do not report SSDI as income on your Ohio tax return. However, if Ohio asks about your income sources during an audit or verification, you should disclose it. Keep your SSA-1099-SM form to show where your income came from, even though it is not taxable in Ohio.

What if I receive both SSDI and SSI in Ohio?

SSDI is not taxed in Ohio. Supplemental Security Income (SSI) is also not taxed in Ohio or federally. If you receive both, neither is subject to Ohio state tax. However, SSI has strict income and resource limits, so earning wages or receiving other income may affect your SSI amount.

Does Ohio tax my SSDI if I am self-employed?

No. Your SSDI is not taxed in Ohio regardless of your employment status. Your self-employment income is taxed in Ohio, but your SSDI is not. You report self-employment earnings on Schedule C and pay Ohio tax on the net profit.