Tax Planning for Physicians in Ohio (2026)

Physicians in Ohio face a top rate of 2.75% on top of the 37% federal bracket and payroll taxes. This guide summarizes the 2026 Ohio rules that matter most to doctors, dentists and practice owners.

Ohio income tax rates for 2026

Ohio has a flat income tax of 2.75% for 2026 on taxable income above $26,050.

Pass-through entity tax (SALT workaround)

Yes. The state has an elective pass-through entity tax (PTET) that partnerships and S corporations can use to deduct state income tax at the entity level.

For physician practice owners, the PTET matters more in 2026 because the federal SALT deduction for individuals phases back down toward $10,000 once modified AGI passes $505,000. Read our guide to the pass-through entity tax for physicians.

Local income taxes

Most Ohio cities and many school districts levy income taxes; Columbus, Cleveland and Toledo charge 2.5% and Cincinnati 1.8%, generally with credits for tax paid to the city where you work.

Planning notes for Ohio physicians

• Ohio moved to a flat 2.75% rate on income over $26,050 for 2026, but municipal taxes of 2% to 2.5% often exceed the state tax for physicians.
• Ohio exempts the first $250,000 of business income ($125,000 married filing separately) and taxes the rest at 3%, which can favor physicians with pass-through practice income.

Federal strategies that apply in every state

State tax is only part of the picture. The federal rules drive most of the savings for physicians in Ohio:

• W-2 physician tax strategies: maximize 401(k)/403(b), 457(b), HSA and the backdoor Roth.
• 1099 physician tax planning: solo 401(k), deductions and the S corporation decision.
• Practice owners: entity, compensation, cash balance plans and exit planning.
• Real estate and cost segregation for physicians with time to participate.

City guides for Ohio physicians

Local taxes and planning notes for physicians in Columbus, Cleveland and Cincinnati, Columbus, Cleveland, Cincinnati, Toledo, Akron, Dayton. Our planning is delivered virtually, so location does not limit access.

Guides by specialty

Surgeons · Anesthesiologists · Radiologists · Orthopedic Surgeons · Cardiologists · Dentists · Dermatologists · Emergency Physicians · Gastroenterologists · Ophthalmologists · Neurosurgeons · Plastic Surgeons · Psychiatrists · Hospitalists · Pain Management Physicians

This article is for general educational purposes and is not tax, legal or investment advice. Tax law changes often and its application depends on your facts. Figures reflect 2026 rules as published by the sources listed above. Consult a qualified professional before acting. See our editorial policy.