Ohio vs Federal Tax Comparison
| Tax Type | OH State Rate | Federal Rate | Notes |
|---|---|---|---|
| Personal Income Tax | 2.765–3.5% | Federal: 10–37% | Combined fed+state applies |
| Corporate Income Tax | 0.26% | Federal: 21% | No corp income tax; 0.26% Commercial Activity Tax (gross receipts) |
| State Sales Tax | 5.75% | No federal sales tax | Combined avg: 7.24% |
| Capital Gains Tax | 3.5% | Federal: 0–20% | Same as income tax |
About Ohio Taxes
No traditional corp income tax; CAT on gross receipts instead.
Ohio levies income tax at rates from 2.765–3.5%. The progressive bracket system means higher earners pay a larger percentage on income above each threshold.
Corporate activity in Ohio faces a 0.26% state corporate tax rate. No corp income tax; 0.26% Commercial Activity Tax (gross receipts). Combined with the 21% federal corporate rate, businesses should plan accordingly.
Calculate Your Net Salary in Ohio
See federal + OH state tax deductions, Social Security, Medicare, and take-home pay
Open US Salary CalculatorFrequently Asked Questions — Ohio Taxes
What are Ohio's income tax brackets for 2026?
Ohio has a progressive income tax ranging from 2.765–3.5%. The top rate of 3.5% applies to the highest income bracket. Filers should check the current threshold amounts on the Ohio Department of Revenue website.
What is the corporate income tax rate in Ohio?
Ohio imposes a corporate income tax at 0.26%. No corp income tax; 0.26% Commercial Activity Tax (gross receipts). Businesses should also account for federal corporate tax at 21% on top of the state rate.
What is the sales tax rate in Ohio?
Ohio has a state sales tax of 5.75%. When local city and county taxes are included, the average combined rate reaches 7.24%. Rates vary by locality so check the specific municipality for accurate figures.
How does Ohio compare to neighboring states for taxes?
Ohio's overall tax burden ranks favorably among US states. The state levies income tax at up to 3.5%. For individuals evaluating relocation or remote work, comparing the full picture — income, sales, and property taxes — is essential. Use our US Salary Calculator to estimate your net income in Ohio.
Are there any special tax incentives or exemptions in Ohio?
Ohio offers notable tax characteristics: No traditional corp income tax; CAT on gross receipts instead. Businesses and individuals should consult a qualified tax advisor to understand eligibility for available credits, deductions, and incentives specific to Ohio.
Cost of Living in Ohio
Tax rates are only part of the picture — explore city-level cost of living data:
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