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Tax Structure


Ohio has been ranked among the top 5 tax climates in the U.S.  See below for an in depth look at factors such as sales tax, property taxes, income tax and tax incentives.


CORPORATE INCOME TAX / FRANCHISE TAX   STATE LOCAL
Rate (Range)   None 0.0-2.5
Formula   N/A Net Profit
Federal Taxes Deductible   N/A No
Accelerated Depreciation Permitted (Yes or No)   N/A No
 
 
PERSONAL INCOME TAX   STATE LOCAL
Rate (Range)      
Earned Income
  0.495-4.997 0.0-2.5*
Unearned Income (e.g. Dividend)
  0.495-4.997 0.0-2.5*
 
 
LOCAL OCCUPATION TAX (Paid by Employer)   RATE BASIS
City Residents   None N/A
Non-City Residents   None N/A
 
 
LOCAL WAGE TAX (Paid by Employer)   RATE BASIS
City Residents   None N/A
Non-City Residents   None N/A
 
 
COMMERCIAL ACTIVITY TAX
The first $1 million in gross receipts are taxed at:
  • $150 if annual gross receipts are less than $1 million
  • $800 if annual gross receipts are between $1 million and $2 million
  • $2,100 if annual gross receipts are between $2 million and $4 million
  • $2,600 if annual gross receipts are more than $4 million

Tax rate of 0.26 percent on income in excess of $1 million
 
 
SALES / USE TAX RATE
State   5.75
Local   1.0-1.75  
Total   6.75-7.5
SALES TAX RATE BY UTILITY
Electric Power
  • First 2,000 kWh per month at 0.465 cents
  • Next 13,000 kWh per month at 0.419 cents
  • 15,000+ kWh per month at 0.363 cents
Natural Gas   4.75% of gross receipts
Fuel Oil   28 cents per gallon
Water   No sales tax*
Sewer   No sales tax*
Hazardous Waste Disposal   No sales tax*
*City of Columbus. Smaller communities using City of Columbus utilities may charge fee
 
TELEPHONE
Telephone expenses are taxed at standard sales tax rate (6.5-7.0%) plus $0.25 monthly charge
 
 
MACHINERY AND EQUIPMENT SUBJECT TO SALES / USE TAX
Production   Exemptions exist for manufacturing machinery and quipment used in production including agriculture, oil and gas
Non-Production   Exemptions exist for warehouse machinery and equipment, warehouse investory, R&D and data centers
Pollution Control   Exemptions exist for pollution control equipment
Office Furniture / Fixtures / Equipment   Tangible personal property that is not incorporated in products being produced for sale nor consumed directly in product beings produced for sale is generally not tax exempt
 
 
SALES / USE TAX (Yes or No) ON:
Office Building Construction Materials   Yes, taxable at time of purchase. Exemptions exist for federal and state government properties, hospitals, religious or nonprofit purposes, agriculture and sale for use as real property in other states that offer an exemption.
Industrial Building Construction Materials   Yes, taxable at time of purchase. Exemptions exist for federal and state government properties, hospitals, religious or nonprofit purposes, agriculture, and sale for use as real property in other states that offer an exemption.
Manufacturers' Raw Materials   No
Standard Software   Yes
Custom Software   No
 
 
INTANGIBLE PROPERTY
Describe What is Subject to Tax Rate (e.g. Accounts Receivable, Capital Stock)   Shares of stock of incorporated dealers in intangibles and unincorporated dealers in intangibles with capital stock divided into shares; or capital employed in Ohio by an unincorporated dealer in intangibles with capital stock not divided into shares.
Basis and Rate   5 mills local share. 8 mills state share for dealers in intangibles that are subsidiaries of a financial institution or an insurance company; 3 mills state share for other dealers.
 
 
REAL PROPERTY TAX RATES FOR JURISDICTIONS FEATURING
  Columbus Newark Dublin Lancaster Westerville Grove City Reynoldsburg Delaware
City Millage 3.14 3.70 2.95 6.40 20.30 3.50 0.70 2.70
Township Millage 0.00 0.00 15.45 0.00 0.00 23.95 20.50 0.00
County Millage 18.47 8.00 18.47 10.40 18.47 18.47 18.47 7.30
School Millage 75.90 44.63 88.59 68.30 80.50 73.15 74.45 78.24
Library Millage 2.80 1.00 2.80 0.50 2.00 1.00 2.80 1.00
Vocational School Millage 0.00 2.58 1.60 0.00 0.00 0.00 2.00 3.20
Park District 0.00 0.25 0.00 0.40 0.00 0.00 0.00 0.60
Assessment Ratio (%) 35.00 35.00 35.00 35.00 35.00 35.00 35.00 35.00
Reduction Factor 0.19 0.14 0.22 0.46 0.19 0.20 0.19 0.25
Effective Rate per $100 2.55 1.64 3.17 1.47 3.09 3.02 3.02 2.20
 
 
PERSONAL PROPERTY TAX RATES PER $100
  Columbus Newark Dublin Lancaster Westerville Grove City Reynoldsburg Delaware
City Millage None None None None None None None None
County Millage None None None None None None None None
School Millage None None None None None None None None
Special District Millage None None None None None None None None
Assessment Ratio (%) None None None None None None None None
Effective Rate Per $100 None None None None None None None None
 
 
STATE PROPERTY TAX EFFECTIVE RATE PER $100
Real Property None
Personal Property (Machinery/Equipment) None
 
 
PROPERTY TAX AFTER CORE INCOME TAX
Rate N/A
Basis and Rate N/A
 
 
PROPERTY TAX AFTER CORE INCOME TAX AND STATE EXCISE TAX
Taxable Items N/A
Rate for Each Item N/A
 
 
SUBJECT TO PERSONAL PROPERTY TAX
Production Machinery and Equipment None
Non-Production Machinery and Equipment None
Pollution Control None
Inventory None
Raw Materials
None
Work in Progress
None
Finished Goods
None
Freeport Legislation None
Applicable to Warehousing
None
Applicable to Manufacturing
None
Goods Stored in a Public Warehouse
None
Office Furniture - Fixtures None
Computer Equipment
None
Workstations
None
Telephones
None
Furniture
None
Company Vehicles
None
Standard Software
None
Custom Software
None
 







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