Ohio has a flat 2.75 percent individual income tax rate on income over $26,050 (income at or below this amount is not taxed). There are also jurisdictions that collect local income taxes. Ohio does not have a traditional corporate income tax but does impose a gross receipts tax (Commercial Activity Tax). Ohio has a 5.75 percent state sales tax rate and an average combined state and local sales tax rate of 7.3 percent. Ohio has a 1.36 percent effective property tax rate on owner-occupied housing value. Ohio does not have an estate tax or inheritance tax. Ohio’s gas tax is 38.5 cents per gallon, and its cigarette excise tax is $1.60 per pack of 20 cigarettes.
Ohio raises tax revenue primarily through general sales taxes (27.8 percent of total state and local tax revenue), property taxes (27.7 percent), and individual income taxes (26.8 percent). Ohio collects $5,864 in state and local tax collections per capita, carries $5,688 in state and local debt per capita, and has an 84 percent funded ratio of public pension plans. Ohio’s tax system ranks 39th overall on the 2026 State Tax Competitiveness Index.
Each state’s tax code is a multifaceted system with many moving parts, and Ohio is no exception. Use the tabs below to compare Ohio taxes with other states and to see how Ohio raises tax revenue. You can also browse our tax maps, which are compiled from our annual publication, Facts & Figures 2026: How Does Your State Compare?
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The State Tax Competitiveness Index enables policymakers, taxpayers, and business leaders to gauge how their states’ tax systems compare. While there are many ways to show how much state governments collect in taxes, the Index evaluates how well states structure their tax systems and provides a road map for improvement.
122 min read
Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.
2 min read
Individual income taxes are a major source of state government revenue, accounting for more than a third of state tax collections. How do income taxes compare in your state?
9 min read
Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for nearly a quarter of combined state and local tax collections.
18 min read
Forty-four states levy a corporate income tax, with top rates ranging from a 2 percent flat rate in North Carolina to an 11.5 percent top marginal rate in New Jersey. Four states—Georgia, Nebraska, North Carolina, and Pennsylvania—reduced their corporate income tax rates effective January 1, 2026.
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Property taxes are the primary tool for financing local governments. While no taxpayers in high-tax jurisdictions will be celebrating their yearly payments, property taxes are largely rooted in the benefit principle of taxation: the people paying the property tax bills are most often the ones benefiting from the services.
9 min read
While there are many ways to show how much is collected in taxes by state governments, our Index is designed to show how well states structure their tax systems by focusing on the how more than the how much in recognition of the fact that there are better and worse ways to raise revenue.
129 min read
IRS and Census data show that people and businesses favor states with low and structurally sound tax systems, which can impact the state’s economic growth and governmental coffers.
12 min read
When examining tax burdens on businesses, it is important to consider both federal and state corporate taxes. Corporate taxes are one of the most economically damaging ways to raise revenue and are a promising area of reform for states to increase competitiveness and promote economic growth, benefiting both companies and workers.
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Property taxes are the primary tool for financing local government and generating state-level revenue in some states as well.
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The mix of tax sources states choose can have important implications for both revenue stability and economic growth, and the many variations across states are indicative of the different ways states weigh competing policy goals.
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The FDA’s proposal to ban flavored cigars would carry significant revenue implications for many state governments.
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A marriage penalty exists when a state’s income brackets for married taxpayers filing jointly are less than double the bracket widths that apply to single filers. In other words, married couples who file jointly under this scenario have a higher effective tax rate than they would if they filed as two single individuals with the same amount of combined income.
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However well-intended they may be, sales tax holidays remain the same as they always have been—ineffective and inefficient.
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While many factors influence business location and investment decisions, sales taxes are something within policymakers’ control that can have immediate impacts.
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If the policy goal of taxing cigarettes is to encourage cessation, vapor taxation must be considered a part of that policy design.
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