The facts on Ohio’s Tax Climate

  • 5.925%
    Individual Income Tax
    Nine brackets
  • 9%
    Corporate Income Tax
    Special Case
  • 5.5%
    Sales Tax
  • $1,135
    Property Tax Collections
    Per Capita

Ohio‘s Individual Income Tax System

Ohio’s personal income tax system is one of the nation’s most complex and is composed of nine separate tax brackets. Ohio’s top rate of 5.925% kicks in at an income level of $204,200. Among states that levy personal income taxes, Ohio’s top tax rate is 27th highest nationally. Ohio’s 2010 state-level individual income tax collections were $684 per person, which ranked 30th highest nationally.

50-State Table of Individual Income Tax Rates

50-State Table of State Individual Income Tax Collections

50-State Table of State and Local Individual Income Tax Collections Per Capita

Tax Freedom Day Arrives on April 12 in Ohio

Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2012, Ohio taxpayers work until April 12 (ranked 28th nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Kentucky, April 9 (ranked 37th nationally); Indiana, April 14 (ranked 26th nationally); Michigan, April 14 (ranked 26th nationally); Pennsylvania, April 18 (ranked 14th nationally); and West Virginia, April 8 (ranked 39th nationally).

 

 

Ohio’s State and Local Tax Burden Below National Average

Ohio’s state and local tax burden is currently estimated at 9.7% of income (18th nationally), just below the national average of 9.8%. Compared to the 1977 data, Ohio had a tax burden of 8.9% (40th nationally), increasing 0.8% overall. Currently Ohio’s taxpayers pay $3,652 per capita in state and local taxes.
Ohio’s State-Local Tax Burden, 1977-Present
Other States’ State/Local Tax Burdens
Map of U.S. Showing all State’s Burdens and Ranks
Historical Chart Comparing All States’ State/Local Tax Burdens from 1977 to 2009

Ohio’s 2013 Business Tax Climate Index Ranks 39th

Ohio ranks 39th in the Tax Foundation’s State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Indiana (11th), Pennsylvania (19th), West Virginia (23rd), Kentucky (24th), and Michigan (12th).

50-State Comparison of Business Tax Climates (data only)
2013 State Business Tax Climate Index (full study)