Is an STRS Ohio pension taxable?
Yes. Monthly STRS Ohio benefits are federally taxable from the first payment, and STRS Ohio withholds federal tax unless you say otherwise. Ohio residents also owe Ohio income tax on the taxable part. Benefits are exempt from Ohio local and municipal taxes, but some school districts tax them. Plans of Payment, pp. 18-19, Taxation of monthly retirement benefits; ORC 3307.41
- A PLOP paid to you has 20% federal withholding and may have a 10% penalty, unless you're 59 1/2 or left service in or after the year you turned 55. Roll it over to defer tax. Plans of Payment, pp. 14-17
- Monthly survivor benefits, and a survivor's PLOP, are exempt from all state and local taxes in Ohio, including school district income tax; they're federally taxable. Survivor Benefits, pp. 14-17
- The automatic $1,000 death benefit isn't taxed; the optional retiree-funded one is. Plans of Payment, pp. 20-27
- Federal law requires a minimum distribution by April 1 after the later of the year you turn 73 or the year you stop Ohio public work. Plans of Payment, pp. 6-9
The lump sum above is the PLOP, which you choose with your plan of payment; the survivor rules are explained with the benefits themselves on the survivor benefits page. Taking your account out instead of a pension has its own tax rules, covered under leaving teaching.
Withholding and your 1099-R
- After each calendar year STRS Ohio sends a 1099-R showing gross benefits and the taxable amount, with a separate 1099-R for a PLOP. It's also in your Online Personal Account, which has a W-4 withholding calculator.Plans of Payment, pp. 18-19
- STRS Ohio withholds federal tax unless you say otherwise; if nothing is withheld you file quarterly estimates. It withholds Ohio income tax only on request, and it can't withhold tax for any other state.Plans of Payment, pp. 16-19
Rollovers, taxed contributions and school district tax
- STRS Ohio retirement benefits are federally taxable. Ohio residents owe Ohio income tax on them; they're exempt from local and municipal taxes in Ohio but may be subject to school district income tax.Plans of Payment, pp. 18-19
- Monthly survivor benefits are exempt from all state and local taxes in Ohio, including school district income tax, according to STRS Ohio's survivor brochure.Survivor Benefits, pp. 14-17
- A PLOP or account withdrawal paid to you has 20% federal tax withheld, and a 10% penalty may apply unless you're 59 1/2 or left service in or after the year you turned 55. A rollover defers the tax.Plans of Payment, pp. 14-17; Survivor Benefits, pp. 18-21
- If you paid tax on some of your contributions, a small part of each benefit is tax-free until those taxed contributions are used up. STRS Ohio's example: $25,000 of taxed contributions spread over 25 years makes $1,000 a year tax-free for 25 years.Plans of Payment, pp. 18-19
- Some Ohio school districts apply their income tax to earned income only, so whether yours taxes your pension depends on the district.Plans of Payment, pp. 18-19
- To roll over a whole PLOP paid to you, you must replace the 20% withheld from your own funds within 60 days; otherwise only 80% is rolled over and the 20% is taxable. At 73 or older you can't roll over the entire PLOP.Plans of Payment, pp. 16-17
Before you retire
Taxes come out of the gross benefit. To see the gross amount for your dates, use the STRS Ohio calculator; each year of service adds 2.2% of final average salary before tax. STRS Ohio itself says it can't give tax advice and points members to the IRS, the Ohio Department of Taxation or a tax consultant. Plans of Payment, pp. 18-19
Questions
Does Ohio tax STRS Ohio pensions?
Yes, for Ohio residents: Ohio income tax applies to the taxable part, and school district income tax may too. Local and municipal taxes don't apply. Monthly survivor benefits are exempt from all Ohio state and local taxes.
Is my STRS Ohio pension taxed federally?
Yes, from the first payment. STRS Ohio withholds federal tax unless you tell it otherwise; if nothing is withheld you're responsible for quarterly estimates.
Is the PLOP taxed?
Yes. A Partial Lump-Sum Option Plan payment paid to you has 20% federal withholding and may carry a 10% early-withdrawal penalty. Rolling it over defers the tax. Ohio residents owe Ohio income tax on it.
What if I move out of Ohio?
Your new state's law decides its tax on your pension. STRS Ohio can't withhold tax for any state other than Ohio, so you may need to make estimated payments there.
This isn't tax advice. Ask a tax adviser about your own situation.
Source: STRS Ohio, Understanding Your STRS Ohio Benefits: Plan Summary, 2026|2027 (form 20-101, Aug. 2026). Also: STRS Ohio Service Retirement and Plans of Payment (Defined Benefit Plan), 2026|2027 (form 15-126, 6/26), pp. 6-9, 14-17, 16-19, 16-17, 18-19, 20-27. Also: STRS Ohio Survivor Benefits (Defined Benefit Plan), 2026|2027 (form 16-100, 6/26), pp. 14-17, 18-21. Background: Ohio Revised Code Chapter 3307. Last reviewed .