Active-duty and reserve pay
Residents serving on active duty outside Ohio can deduct their military pay.
An E-5 with over 6 years of service earns $49,320 a year in basic pay. If those conditions are met, Ohio does not tax it. If not, the full $49,320 counts as Ohio income. Housing and food allowances are never taxed by any state.
Military retired pay
Military retired pay is exempt.
Your state of legal residence decides
Military pay is taxed by your state of legal residence, usually the state you lived in when you joined or one you later adopted by changing your records, not by the state where you are stationed. This comes from the Servicemembers Civil Relief Act. Spouses can choose to use the member's state of legal residence for their own income too.
See your total pay with state tax
Questions
Does Ohio tax military pay?
Ohio exempts military pay only in certain cases, mainly when you are stationed outside the state. Residents serving on active duty outside Ohio can deduct their military pay.
Does Ohio tax military retirement pay?
Military retired pay is exempt.
Is BAH taxed in Ohio?
No. BAH and BAS are not taxable income for federal or state tax in any state.
Which state taxes me if I am stationed in Ohio?
Under the Servicemembers Civil Relief Act, your military pay is taxed only by your state of legal residence, not the state where you are stationed. If Ohio is not your legal residence, Ohio does not tax your military pay.