Ohio brokerage account growth calculator

What a taxable index-fund account is actually worth after expense-ratio drag and after Ohio takes its share of the gain — which, in most states, is not at the federal preferential rate.

Ohio taxes your gains as ordinary income

There is no state equivalent of the federal preferential rate here — a long-term gain is charged at Ohio's normal income brackets, exactly like wages. This is the common case, and it surprises people who assume the federal 15% carries over. Long-term capital gains are taxed as ordinary income at the flat 2.75% above the $26,050 exclusion band. Ohio adjusted gross income starts from federal AGI, which already includes net capital gain, and Ohio provides no preferential rate, no holding-period discount, and no general exclusion — the federal preferential long-term rate does NOT carry over. Ohio's separate 3% flat rate on business income (the business income deduction regime) does not reach ordinary investment gains. Most Ohio municipalities do not tax capital gains, so the local layer that matters so much for wages generally does not apply to an investment gain.