Ohio Tax

Ohio State Tax

Ohio Income Tax

Tax compliance is one of the most important obligations of citizens. In the United States, residents pay state taxes apart from their federal tax obligations. State taxes are used to fund state operations and government projects such as infrastructure construction, calamity assistance, and education, health and other social services.

State taxes differ from one state to another. In Ohio, the Department of Taxation is responsible for regulating tax laws and procedures in the state.

Ohio Income Tax

Ohio tax rates are spread across nine brackets. The state has been implementing ways to lower taxes since 2005. Today, the minimum personal income tax for single filers in Ohio is 0.59% for the first $5100 of taxable income while the maximum tax rate is 5.92% for incomes over $204,200. Unlike the federal tax system, there are no wider income tax brackets for joint filers. Some counties in Ohio impose local tax rates as well.

Ohio is a favorable incorporation site for companies and businesses because it does not levy corporate income tax.

Ohio Sales Tax

Total sales tax rates in Ohio range from 5.5% to 7.75%. Like in most states, Ohio does not levy tax on purchase of groceries except soda and alcohol which are subject to higher special sales tax rates. The State of Ohio is also one of the few states that levy sales tax on online and out-of-state transactions. Annual out-of-state sales of over $4 million are subject to Ohio sales tax laws.

Ohio Property Tax

On average, Ohio collects approximately 1.36% of the fair market value of properties assessed in the state each year. Property tax amounts to up to 3.16% of the residents’ annual income.