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 in New York). The average local city tax in Ohio is 1.56%.
State Gross Margins 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 and Property Taxes in Ohio
Sales Tax – 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%).
Payroll 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: