STATE RANKING #17

Quick facts: 

-Most cities in the State of Ohio have their own local tax return.

-Ohio is one of a few states that has a Gross Margins Tax

4.80%

State Income Tax

State
Income
Tax

NONE*

Cost of Setting Up A Business

state
business
tax

HIGH

Property
Taxes

7.17%

Sales
Tax (average)

State Income Taxes in Ohio

The state of Ohio does have an individual income tax. Like most states with income tax, it is calculated on a marginal scale whose range is from 2.85% to 4.80%.

Unlike most states, Ohio cities have their own individual city tax returns (similar to the Manhattan Island Tax return in New York). The average local city tax in Ohio is 1.56%.

State Business Taxes in Ohio

The state of Ohio does not have a business income tax; however it does have a Gross Margins Tax* called the Commercial Activities Tax (CAT)

The CAT is assessed on businesses that have over $150,000 in Revenue in Ohio. If gross receipts are less than $1,000,000, the tax due is $150 and is based on calendar year. If revenue is in excess of $1 million, the tax is filed quarterly with a tax rate of.26%.

Sales Taxes in Ohio

Like many states, Ohio has multiple tax rates. One at the state level and another at the local level. The state rate is 5.75% the average local rate is 1.42% (total average rate for Ohio Sales Tax is 7.17%).

Property Taxes in Ohio

The average property tax rate for residential property in the state of Ohio is 1.62%, making it one of the more expensive places to own property in the country (the national average is 0.93%).

Unemployment taxes in Ohio

Unemployment taxes usually consist of three factors. They are the wage base, range of rates, number of schedules. Below is an outline of the three:

  • Wage Base – Ohio has a wage base of $9,500 for 2020
  • UI Rates – range from 0.15% to 9.20% which is very high for UI
  • Schedules – Ohio has multiple rate schedules regarding UI

Ohio Business Entities - LLCs

Ohio is one of the least expensive state to open an LLC. In fact, it is one of a few states that has no annual LLC fee. Here are some important facts:

  • Ohio does not have an annual LLC fee. Yay!
  • When you register with the state, you pay a one time fee of $99
  • Secretary of State of Ohio website – click here
  • Commercial Activity Tax website – click here
  • If you would like help setting up your LLC, we recommend using IncFile.com. They are simple and easy to use.

State #16

State #18