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The facts on Ohio’s Tax Climate
5.421%Individual Income TaxTop rate
N/ACorporate Income TaxGross Receipts Tax
$1140Property Tax CollectionsPer Capita
Ohio's Individual Income Tax System
Ohio's personal income tax system consists of nine brackets and a top rate of 5.421%. That rate ranks 23rd lowest among states levying an individual income tax. Ohio's state and local income tax collections per person were $1135 in 2011 which ranked 11th 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
Ohio's Corporate Income Tax System
Ohio, Texas, and Washington do not have a corporate income tax but do have a gross receipts tax with rates not strictly comparable to corporate income tax rates.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita
Ohio Sales and Excise Taxes
Ohio levies a 5.75% general sales or use tax on consumers, which is below the national median of 5.95%. The average local sales tax rate is an additional 1.36%. Ohio's state and local governments collect $823 per person in general sales taxes and $436 per person in excise taxes, for a combined figure of $1259, which ranks 19th highest nationally. Ohio's gasoline tax stands at 28¢ (22nd highest nationally), while its cigarette tax stands at $1.25 (24th lowest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
Ohio Property Tax Collections Average
Ohio's state and local governments collected approximately $1140 per person in property taxes, which ranks 22nd lowest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 14th 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 2014, Ohio taxpayers worked until April 14th (23rd earliest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Indiana, April 16th (ranked 24th latest nationally); Pennsylvania, April 21st (ranked 15th latest nationally); West Virginia, April 10th (ranked 9th earliest nationally); Kentucky, April 8th (ranked 7th earliest nationally); and Michigan, April 17th (ranked 21st latest nationally).
Ohio's State and Local Tax Burden In Line with National Average
Ohio's 2011 tax burden of 9.68% ranks 18th highest out of 50 states, and is below the national average of 9.8%. Ohio's taxpayers pay $3687 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 2014 Business Tax Climate Index Ranks 39
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, 10th, Pennsylvania, 24th, West Virginia, 23rd, Kentucky, 27th, and Michigan, 14th.
50-State Comparison of Business Tax Climates (data only) (2013)
2014 State Business Tax Climate Index (full study)
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