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?
Get facts about taxes in your state and around the US
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.
5 min read
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
The significant disparity in tax rates across states underscores the complex tax and regulatory environment governing distilled spirits.
9 min read
Tax collections vary widely by state, making per capita collections figures—a measure of collections per person—especially useful, as they allow comparisons across differences in tax rates and bases, economic capacities, and policy decisions that impact the size and scope of government.
5 min read
Rental cars are some of the most heavily taxed transactions in the US. Rather than levying additional taxes on rental cars by trying to export the tax burden to nonresidents, municipalities should enact principled, neutral transportation tax policy that is unlikely to discourage visitors, tourists, and other economic activity.
5 min read
These debates are often framed in terms of fairness. Raise taxes on a few to provide benefits for most, the thinking goes. But in policy, the more important question should focus on mechanics: will this change achieve its stated goal?
Millions of Americans, along with significant amounts of income and economic activity, are moving from high-tax states to those with more competitive tax systems and lower overall costs of living.
8 min read
Nearly half of US states regulate and tax recreational markets, and only 10 states still lack a comprehensive medical marijuana program.
8 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
The amount of revenue states raise through roadway-related revenues varies significantly across the US. Only two states raise enough revenue to fully cover their highway spending.
5 min read
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
Ohio’s SB 9 will boost economic growth by conforming Ohio’s tax code to the domestic research and experimentation (R&E) immediate cost recovery provision in the One Big Beautiful Bill Act.
8 min read
