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Ohio State Taxes


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:

  • 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

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