$LevyIO

1031 Like-Kind Exchange in Ohio 2026

Calculate your 1031 like-kind exchange tax savings in Ohio. With Ohio's 3.5% top state tax rate, your combined savings are higher.

Ohio Tax Overview

State Income Tax
3.5%
progressive
Sales Tax
5.75%
avg combined: 7.24%
Property Tax Rate
1.53%
Median Income
$62,262

First $26,050 tax-free. Low top rate 3.5%. Many cities levy 2-3% income tax.

Ohio Income Tax Brackets (Single)

0%
$0 - $26,050
2.75%
$26,050 - $100,000
Your bracket
3.5%
$100,000 +
$1,238
Est. Total Savings
No Limit
Max Deduction
Deferral
Deduction Type
24.8%
Combined Tax Rate

1031 Like-Kind Exchange Savings Calculator for Ohio

$
$

Federal Savings

$1,100

22% bracket

Ohio State

$138

2.75% rate

Total Savings

$1,238

24.8% combined

At a 24.8% combined tax rate in Ohio, every $1,000 in deductions saves you $248 in taxes.

Savings by Tax Bracket in Ohio

10%
$638
12%
$738
22%
$1,238
24%
$1,338
32%
$1,738
35%
$1,888
37%
$1,988

Includes 2.75% Ohio state tax on top of federal savings.

Eligibility Requirements

Real estate investors exchanging investment properties

  • 1Real property only
  • 245-day identification
  • 3180-day completion

Ohio residents should verify that this deduction is also recognized on their state tax return for additional savings of up to 3.5%.

Common Mistakes to Avoid

  • !Missing deadlines
  • !Using for personal residence
  • !Forgetting to claim the deduction on your Ohio state return (missing up to 3.5% additional savings)

Ohio Filing Tips

The $26,050 zero-bracket benefits low earners. Check your city's income tax rate. Social Security is exempt. Consider municipal tax when choosing where to live.

Required Tax Forms

Form 8824

File these forms with your federal tax return to claim the 1031 like-kind exchange. Ohio may require additional state-specific forms.

Other Tax Deductions in Ohio

Capital Loss Deduction

Investment

~$743
est. savings

Tax-Loss Harvesting

Investment

~$5,625
est. savings

Investment Interest Expense

Investment

~$1,688
est. savings

Qualified Dividend Tax Rate

Investment

~$3,375
est. savings

Opportunity Zone Investment

Investment

~$11,250
est. savings

QSBS Exclusion (Section 1202)

Investment

~$112,500
est. savings

Installment Sale

Investment

~$9,000
est. savings

NIIT Planning (3.8% Surtax)

Investment

~$5,625
est. savings

1031 Like-Kind Exchange in Neighboring States

Michigan

4.25% top rate (flat)

~$35,795
+34,557 vs Ohio

Indiana

3.05% top rate (flat)

~$34,159
+32,921 vs Ohio

Kentucky

4% top rate (flat)

~$35,455
+34,217 vs Ohio

West Virginia

5.12% top rate (progressive)

~$36,982
+35,744 vs Ohio

Pennsylvania

3.07% top rate (flat)

~$34,186
+32,948 vs Ohio

Tax Calculators for Ohio Cities

ColumbusClevelandCincinnatiToledoAkronDaytonParmaCantonLorainHamilton

Calculate Your Full Tax Savings in Ohio

Use our free tax calculators to optimize your entire tax return for Ohio.

Income Tax CalculatorOhio Income TaxFull 1031 Like-Kind Exchange Guide

Frequently Asked Questions

How much can I save with the 1031 Like-Kind Exchange in Ohio?

In Ohio, the 1031 like-kind exchange can save you an estimated $1,238 per year on a $5,000 deduction. This includes $1,100 in federal tax savings and $138 in Ohio state tax savings at the 2.75% marginal rate. The national average savings is $30,000/year.

What is the Ohio state income tax rate?

Ohio has a progressive income tax system with a top rate of 3.5%. First $26,050 tax-free. Low top rate 3.5%. Many cities levy 2-3% income tax.

Who qualifies for the 1031 Like-Kind Exchange in Ohio?

Real estate investors exchanging investment properties. The eligibility requirements are the same whether you live in Ohio or another state, as this is a federal tax deduction. However, your total savings will vary based on Ohio's 3.5% top state tax rate.

What tax forms do I need to claim the 1031 Like-Kind Exchange in Ohio?

To claim the 1031 like-kind exchange, you need to file Form 8824 with your federal return. Ohio residents should also check if the state allows this deduction on their state return for additional savings of up to 3.5%. Filing status affects your deduction limits and tax bracket.

Is the 1031 Like-Kind Exchange better in Ohio than in states without income tax?

Yes, Ohio residents benefit more because the state's 3.5% top income tax rate means the deduction reduces both your federal AND state tax liability. In states with no income tax (like Texas, Florida, or Nevada), this deduction only reduces federal taxes. Your combined rate of 24.8% means more savings per dollar deducted.

What is the standard deduction in Ohio for 2026?

Ohio's standard deduction is $0 for single filers and $0 for married filing jointly. The $26,050 zero-bracket benefits low earners. Check your city's income tax rate. Social Security is exempt. Consider municipal tax when choosing where to live.

Related Calculators

Capital Loss Deduction in Ohio

Avg savings: $660/year

Tax-Loss Harvesting in Ohio

Avg savings: $5,000/year

Investment Interest Expense in Ohio

Avg savings: $1,500/year

Qualified Dividend Tax Rate in Ohio

Avg savings: $3,000/year

Opportunity Zone Investment in Ohio

Avg savings: $10,000/year

QSBS Exclusion (Section 1202) in Ohio

Avg savings: $100,000/year