Taxation in Ohio

Updated on Monday 26th November 2018

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The Commercial Activity Tax or CAT, as it is known, is applicable for most of the companies with activities in the state of Ohio. This is the most important tax a company needs to pay in Ohio for the privilege of doing business in this state. Our company formation agents in USA can offer their support and assistance for foreign entrepreneurs who would like to start a business in USA, including Ohio.

What is the Commercial Activity Tax Rate in Ohio?

The tax for the privilege of doing business in Ohio (corporation franchise tax) has been eliminated in 2014 and replaced with the Commercial Activity Tax which is based on gross receipts, as seen in the following table:
Gross receipts Tax
Up to $150,000   No tax imposed
Between $150,000 and $1 million $150
Between $1 million and $2 million  $800
Between $2 million and $4 million $2,100
More than $4 million   $2,600 and 0.26% of gross receipts
All the rules about the Commercial Activity Tax in Ohio can be explained by our team of specialists in company incorporation in Ohio at any time. It is good to know that companies with more than 1$ million in gross receipts are subject to a CAT which needs to be paid on a quarterly basis.

What is the sales tax rate in Ohio?

The standard sales tax rate is 5.75% in Ohio. As for the municipalities of this state, these can impose their own use and sales tax for goods and services meant for sale purposes. Our advisors can provide in-depth information about this kind of tax.

Taxes for personal income in Ohio

The personal income registered in Ohio is levied with a tax that ranges between 1.980% and 4.997%, depending on the generated revenues and their sources. 

Taxes for LLCs in Ohio

The same commercial activity tax is applicable for a limited liability company imposed on gross receipts. Besides that, the federal and state taxes (payroll taxes, property taxes, estate and gift taxes, sales tax) need to be considered when opening a company in Ohio.

We invite you to contact our team of company formation representatives in USA and solicit assistance for company formation in USA and for information about the taxation structure.