Ohio Bonus Tax Calculator:
Employers' Trusted Tool for Accurate Bonus Payments
The Beyond bonus tax calculator, featured at the top of this page, is a handy tool that helps employers to quickly estimate the net pay (the actual take-home amount) for any bonuses issued to employees.
Are Bonuses Taxed in Ohio?
Yes, bonuses in Ohio are subject to taxation. The state requires employers to withhold both state and local income tax, where applicable, by treating bonuses as part of an employee’s regular income.
For supplemental wages—such as bonuses, commissions, or nonrecurring payments—employers have two options for withholding:
1 – Flat Rate Withholding: Applying a flat state withholding rate of 3.5% or higher.
2 – Standard Calculation: Calculating the withholding based on the employee’s total wages using Ohio’s standard tax tables.
How to Calculate Bonus Tax
The calculation can be handled using either the flat rate method or the aggregate method.
If the bonus is paid separately, employers may apply the flat state rate of 3.5%, in addition to any required local taxes. Alternatively, employers can use the aggregate method if preferred.
What is the Bonus Tax Rate in Ohio?
– State Rate: Can be up to 3.75%.
– Local Rate: Varies widely (some localities exceed 2.5%).
Payment Methods and Tax Details
Why Is Bonus Taxation Sometimes Different?
Bonuses aren’t always taxed differently from standard pay. However, if a bonus is paid via a separate check or deposit, the employer has the option to apply a flat state rate of 3.5% instead of utilizing the standard income tax tables.
Taxes Taken Out of a Bonus in Ohio
| Tax Level | Rate |
| Federal | 22% |
| State | Flat 3.5% or calculated by wage bracket |
| Local | Varies by location (commonly 1%–2.5% or more) |
| Combined Total | Can be as much as 28.25%, depending on the locality |
How Can Employers Pay Bonuses?
Bonuses can be paid using the following methods:
– Check
– Direct deposit
– Pay card
In summary, Ohio employers must include bonuses in total income, apply the necessary state and local withholdings, and report the amount on Form W-2.