Tax Planning for Physicians in Columbus, Cleveland and Cincinnati (2026)

In Ohio, the city tax often costs physicians more than the state tax. Most Ohio cities levy a municipal income tax on wages and net profits, and many school districts add a separate tax.

2026 at a glance

How credits work

Ohio cities tax people who work in the city and residents who live there. Most cities give residents a full or partial credit for tax paid to the city where they work, so a physician who lives in a suburb and works in Cleveland or Columbus often pays the work-city rate plus any uncredited difference to the home city.

Planning priorities

• Ohio's business income deduction exempts the first $250,000 of pass-through business income and taxes the rest at 3%, which can favor physicians who own their practice.
• Municipal taxes generally apply to net profits of practices, and Ohio requires many municipal returns to be filed with the city or a regional agency such as RITA.
• Ohio's pass-through entity tax is available to practice owners.

See the full Ohio physician tax guide.

More physician tax guides

• Other Ohio cities: Columbus, Cleveland, Cincinnati, Toledo, Akron, Dayton.
• State rules: Ohio physician tax guide and all 50 state guides.
• By specialty: Gastroenterologists, Psychiatrists, Anesthesiologists, Dentists and every specialty.
• Core strategy: tax planning for physicians, tax planning for medical practice owners, advanced strategies for high-income physicians and S corporation tax planning for physicians, plus the physician tax glossary.

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.