Ohio Tax Calculator
Ohio Income Tax
Ohio has a graduated income tax with effective rates from 0% to 3.50%. Notably, the first $26,050 of taxable income is completely tax-free. Income from $26,050 to $100,000 is taxed at 2.75%, and income over $100,000 is taxed at 3.50%. Ohio eliminated its bottom brackets in recent years, significantly simplifying and reducing the tax.
Ohio Sales Tax
Ohio's state sales tax is 5.75%, with county sales taxes adding 0.75% to 2.25%. The average combined rate is approximately 7.24%. Groceries are exempt from state sales tax. Prescription drugs are exempt.
Ohio Property Tax
Ohio's effective property tax rate is approximately 1.53%, well above the national average. Rates vary significantly by county and school district. Some suburban Cleveland and Columbus areas have effective rates exceeding 2%.
Ohio Municipal Income Taxes
Ohio is one of the few states where cities levy their own income taxes. Most major Ohio cities impose municipal income taxes ranging from 1% to 3%:
- Columbus — 2.50%
- Cleveland — 2.50%
- Cincinnati — 1.80%
- Toledo — 2.50%
- Dayton — 2.50%
These municipal taxes are in addition to the state income tax, making Ohio's total income tax burden higher than the state rate alone suggests. Most cities offer credits for taxes paid to other municipalities.
Ohio School District Income Taxes
Over 200 Ohio school districts impose an additional income tax ranging from 0.25% to 2%. This tax funds local schools and is separate from property tax. Between state, municipal, and school district taxes, some Ohio residents face a combined income tax rate of 6% or more.
Ohio Commercial Activity Tax (CAT)
Ohio replaced its corporate franchise tax and personal property tax on business equipment with the Commercial Activity Tax, which is a gross receipts tax of 0.26% on business gross receipts over $1 million. This tax applies to most businesses operating in Ohio.