Tax & Incentives
Ohio Taxes and Tax Structure
Ohio's low corporate tax structure was purposefully designed to stimulate entrepreneurial activity. As a result, small businesses pay no corporate income tax, a flat $150 fee on the first $1 million in gross receipts, no tax on out-of-state transactions and no personal property tax on business inventory, machinery or equipment.
For example:
- Companies with sales between $150,000 and $1 million to Ohio customers pay only a $150 fee, while companies with the same income in surrounding states pay between $2,650 and $8,048 in taxes.
- A company that grows to achieve $5 million in sales, half to clients outside the state, would pay $4,050 in Ohio taxes. In other Midwest states, the same company would pay between $13,425 and $28,676.
