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Retirement options for gig workers in Ohio (no state plan)
Your W-2 plan covers your paycheck. Gigaverse covers your hustle.
Status as of Oct 28, 2026.
No state-run auto-IRA
Ohio does not operate a state auto-IRA. Nothing in state law withholds retirement savings from a 1099 payment. A W-2 employer plan, or a city payroll program where one exists, covers that job's wages. Gigaverse is the layer for the 1099 income beside it, not a replacement for the plan the paycheck already has.
The 50-state status table is the state auto-IRA hub and the mandate tracker.
What the IRS counted in Ohio, tax year 2023
IRS Statistics of Income Historic Table 2 counts returns, not people. In tax year 2023, Ohio had 895,310 returns with Schedule C income, 15.8% of 5,678,870 returns in the state. 662,850 returns paid self-employment tax. 27,220 of those claimed the self-employed retirement-plan deduction, a rate of 4.1%. That deduction is the SEP, SIMPLE, or qualified-plan line. It does not measure Roth IRA contributions.
Ohio self-employment tax
Federal self-employment tax is 15.3% of 92.35% of net profit: 12.4% Social Security, up to the $184,500 wage base in 2026, and 2.9% Medicare with no cap. Half of that tax is deductible. Ohio income tax is separate and is in the next section. A state auto-IRA, where one exists, does not replace this federal tax.
Self-employment tax calculator · 1099 estimated tax calculator
Ohio income tax on 1099 profit
For taxable years beginning in 2026, Ohio Revised Code section 5747.02 taxes nonbusiness income over $26,050 at $332 plus 2.75% of the excess. A balance of $26,050 or less is not taxed. Taxable business income is taxed at 3%. Section 5747.01 lets an individual deduct $250,000 of business income, or $125,000 for each spouse filing separately. Cities may add a municipal income tax.
Federal quarterly estimates are separate from the state. The 1099 quarterly tax calculator uses the federal dates and self-employment tax. State tax guides for Ohio cities are linked below and from Ohio local taxes.
No auto-IRA. Business income has its own rate.
Ohio has no state auto-IRA. The 136th General Assembly's retirement-bill index lists public-retirement bills, not a program that would withhold savings from 1099 pay. Columbus, Cleveland, Cincinnati, and Toledo workers are not in a state payroll IRA.
For 2026, Revised Code 5747.02 taxes nonbusiness income over $26,050 at $332 plus 2.75% of the excess. Taxable business income is taxed at 3% after the deduction in section 5747.01: $250,000, or $125,000 for each spouse filing separately. Cities can add their own income tax on top. None of that opens a retirement account.
What a 1099 worker can use in 2026
These limits are federal. They do not change because Ohio has no state plan. Catch-up contributions are not part of the $72,000 annual-additions cap.
| Account | 2026 limit | Who it fits |
|---|---|---|
| IRA (Roth or traditional) | $7,500, or $8,600 at age 50 or older. The limit is shared across every IRA. | Earned income, including 1099 profit, within the Roth income limits if the account is a Roth. |
| SEP IRA | Generally up to 25% of compensation, and not more than $72,000 of annual additions. | Employer contribution from the business. A sole proprietor's percentage is computed after self-employment tax adjustments. |
| Solo 401(k) | Elective deferral $24,500. Catch-up $8,000 at 50 or older, or $11,250 at ages 60 through 63. Employer contributions share the $72,000 cap with deferrals, before catch-up. | A self-employed worker with no full-time W-2 employees in the plan, who wants both a deferral and an employer contribution. |
Sources: IRS IR-2025-111, Notice 2025-67, IRS 401(k) contribution limits.
Read the Solo 401(k) for self-employed workers page, then run a number in the SEP-IRA contribution calculator. Gigaverse account opening for the Solo 401(k), the SEP and the PRActicle Roth IRA is waitlist only.
Where Gigaverse fits
Gigaverse is not a state program and is not a registered investment adviser. It sits next to a W-2 plan or a state program when one exists. Plans are Free, Pro ($4.99/mo) and Wealth Builder ($9.99/mo). The Solo 401(k), SEP and PRActicle Roth IRA are waitlist only. Gigaverse's published figure is "$5K+" labeled "Avg. tax savings per year, per worker."
City guides and job guides
These are existing local tax pages, not copies of this retirement guide.
Columbus · Cleveland · Cincinnati · Toledo
Uber drivers · Lyft drivers · DoorDash drivers · Instacart shoppers · Amazon Flex drivers
Questions
Does Ohio run an auto-IRA for gig workers?
No. Ohio has no state-run auto-IRA in operation. A W-2 retirement plan, where one exists, covers that paycheck. It does not cover 1099 income. Status as of Oct 28, 2026.
Does Ohio tax 1099 income?
For taxable years beginning in 2026, Ohio Revised Code section 5747.02 taxes nonbusiness income over $26,050 at $332 plus 2.75% of the excess. A balance of $26,050 or less is not taxed. Taxable business income is taxed at 3%. Section 5747.01 lets an individual deduct $250,000 of business income, or $125,000 for each spouse filing separately. Cities may add a municipal income tax.
How much can a 1099 worker contribute in 2026?
For 2026 the IRA limit is $7,500, or $8,600 at age 50 or older. A Solo 401(k) elective deferral is $24,500, plus a catch-up of $8,000 at 50 or older, or $11,250 instead at ages 60 through 63. Employer contributions plus deferrals are limited to $72,000 of annual additions, not counting catch-up. A SEP contribution is generally up to 25% of compensation, inside that same annual-additions cap. These figures are from IRS news release IR-2025-111, Notice 2025-67, and the IRS 401(k) contribution-limits page.
Is Ohio getting a state auto-IRA?
No program is enacted. The Ohio Legislature's index of retirement bills in the 136th General Assembly lists public-retirement measures, not an auto-IRA. A 1099 worker in Columbus, Cleveland, Cincinnati, or Toledo is not enrolled by the state.
How does Ohio tax 1099 business income?
Revised Code 5747.01(A)(28) deducts $250,000 of business income, or $125,000 for each spouse filing separately. Revised Code 5747.02(A)(4) taxes the remaining taxable business income at 3%. Nonbusiness income uses the 2026 rule in section 5747.02(A)(3)(c): no tax at $26,050 or below, then $332 plus 2.75% of the excess.
Sources
Status as of Oct 28, 2026. Verified 2026-10-28.
Educational information only, not tax or investment advice. Gigaverse AI, Inc. is not a bank and is not a registered investment adviser. We are not affiliated with Ohio, DoorDash, or any state or city retirement program. Contribution limits are set by the IRS and can change.