The Complete Guide To Retiring in Ohio - Pros and Cons
Written by Ari Parker — Updated: Wednesday, September 18, 2024
Learn about retirement in Ohio, from taxes and income to lifestyle choices
Ohio may not have the stature of California or Florida, but plenty of retired people live there. In fact, 2.8 million people over 60 years old live there, making up almost 25% of the total state population. If you’re considering retiring in Ohio, read this guide to understand the pros and cons.
Key Takeaways:
Ohio has a relatively low cost of living that attracts many retirees with fixed incomes.
Taxes are lower in Ohio than in several other states.
The weather, specifically freezing winters, may be too harsh for some retirees.
There are many highly-rated hospitals in Ohio, making it easier to get good healthcare services.
Pros and cons of retiring in Ohio
Like any other state, retiring in Ohio has its own set of pros and cons. We’ll cover the highlights below and dive into the details of what Ohio retirement looks like after!
Pros
Ohio has an overall lower cost of living, including housing.
Many of the nation’s best hospitals are in Ohio.
There are many opportunities for outdoor activities, like fishing, hiking, and camping.
Ohio has many museums, theaters, and other cultural activities.
Cons
The weather in Ohio can be extreme, with hot summers and cold winters.
Ohio does not have a substantial public transportation system.
Tax rates can be high.
Retirement taxes in Ohio
Ohio’s state income tax rate is relatively low, ranging from 2.75% to 3.75%. Social security income is not subject to those taxes. Railroad benefits and military retirement pay are also not taxed. The state has no inheritance or estate taxes. Property tax rates in Ohio vary by county. The overall state average rate is 1.3%.
Two tax credits are available for retirement income, and two different credits are available for those over 65. One of the retirement income credits is based on the percentage of your income that comes from retirement income, specifically. It can amount to as much as $200. If your retirement income was received as a lump sum instead of a monthly amount, you may get a one-time credit based on that amount. (Retirees who take the lump sum credit are no longer eligible for the credit based on total retirement income.) These credits are only available for those who have a gross income of less than $100,000.
If you are over 65, you can receive a $50 credit on your yearly taxes. Like with retirement taxes, the credit can be taken as a lump sum, which also prohibits you from receiving the yearly credit from then on.
Popular cities for retirement in Ohio
The US News and World Report’s list of the 150 best cities to retire features one Ohio city in its top 25: Youngstown. They cited its overall low cost of living, hiking and biking trails, and a variety of museums and art festivals.
Several other cities in Ohio made the complete list, giving you a variety of places to choose from if you want to retire in Ohio. All of them have lower housing costs and overall costs of living than the national average. They include:
Toledo features the famous Cedar Point amusement park and fishing points along the Maumee River.
Cincinnati has museums, zoos, two professional sports teams, and many local craft breweries.
Cleveland has famous restaurants, a botanical garden, many parks, three professional sports teams, and the Rock and Roll Hall of Fame.
Columbus, the state capital, is home to the famous Ohio State football team. It also has public markets, art and science museums, a zoo and aquarium, and parks and hiking trails.
Climate and outdoor recreation in Ohio
If your main requirement for a retirement location is mild weather year-round, Ohio won’t make your list. The state experiences all four seasons. Summers are hot, and winters are cold—although the winters are a bit less harsh in the southern portions of the state. Tornadoes occasionally occur during the summer.
While harsh weather may stand in the way, if you’re looking to spend time outdoors, Ohio offers many different ways to have fun. Lake Erie borders Ohio and is well known for its beaches. The lake also offers boating, fishing, kayaking, and even parasailing. Hiking trails border many parts of Lake Erie, and numerous other hiking trails exist in the 75 state parks.
Housing and cost of living in Ohio
Ohio has 248 retirement communities. They vary from urban locations to more rural ones. These communities are a great place for seniors to consider if they’re looking for a sense of community or don’t feel comfortable aging in place.
Almost every cost of living consideration is lower in Ohio than the average for the country. Utility costs are 2% lower, healthcare costs are 3% lower, and other goods are 4% lower. The one cost in Ohio that is higher than the national average is transportation, which is 3% higher. This may be from the lack of public transportation in most parts of Ohio, which means more gas consumption.
Ohio’s sales tax rate is 5.75%. Certain essential items, like food, housing utilities, and prescription medication, are exempt. Some city areas charge an additional local tax.
Resources for seniors in Ohio
Ohio’s Department of Aging offers a variety of resources for seniors. There are caregiver resources and a search option for senior services in your area. Most importantly it offers two unique services for those looking for assisted living or nursing home care. One of those is regular forums for feedback on assisted living facilities, and anyone can attend. Another is the Nursing Home Quality Navigator app, which offers a listing of all nursing homes in the state and various data about them that is collected daily.
Quality of healthcare in Ohio
The United Healthcare Foundation rates Ohio 37 out of the 50 states for the health of older adults. However, there are also many notable hospitals in the state. The world-famous Cleveland Clinic is in Ohio. One of the things it’s especially well-known for is surgical care. The Summa Health System-Akron Campus in Akron was rated one of the top 50 hospitals in the United States. It has particularly high markings for cardiac care, critical care, and gastrointestinal care.
Medicare in Ohio
2.5 million Ohio residents—almost 20% of the state population —are enrolled in Medicare. You become eligible for Medicare automatically when you reach 65. 86% of Ohio residents on Medicare are 65 or over; the remaining 14% are eligible because of a medical condition, like end-stage renal failure.
If you become eligible for Medicare due to age, there’s a seven-month period around your birth month in which you can enroll in Medicare. This is called your Initial Enrollment Period (IEP). It starts three months before your 65th birthday month and ends three months after. When you first enroll in Medicare, you’ll enroll in Original Medicare, which is made up of Part A and Part B. You also have additional coverage options, including Part D (prescription drug coverage), Medicare Supplement plans, which stack on top of Original Medicare, and Medicare Advantage, which replaces Original Medicare.
Use the resources below t to learn more about your Medicare options:
Retiring in Ohio
Ohio has a lot to offer seniors who want to retire there. If you’re looking for a low cost of living and are planning on a great deal of outdoor activities, it could be perfect for you.