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Area Development - Site Selection, Facility Planning and Workforce Development

Ohio Basic Business Taxes

Corporate Taxes & Incentives Guide
NO Corporate Profits or Income Tax (except on pass-through entities)
NO Tangible Personal Property Tax
NO Inventory Tax
NO tax on products sold outside of Ohio
NO tax on machinery and equipment investments*
NO tax on R&D Investments

Business Tax:

Ohio has one state business tax for non-pass-through entities - the Commercial Activity Tax (CAT)
  • Low rate of 0.26% on in-state taxable gross receipts
  • No tax on products sold to customers outside of Ohio
  • No tax on first $1 million in taxable gross receipts
  • No CAT tax for pass-through-entities
For pass-through entities (sole-proprietors, LLCs, S-Corps), starting in 2016, there is no corporate income tax on the first $250,000 in business income. There is a 3% flat tax on all income above $250,000.

Sales Tax:
  • The State Sales Tax rate is 5.75%
  • Machinery*, Equipment*, and R&D Investments are not taxed
  • Port Authority sales tax exemption on building supplies and materials
* When the equipment is used for inventory that is primarily shipped outside of Ohio

Ohio State Contact: Lee Crume, Director of Sales, North America
Email: crume@jobs-ohio.com
1-614-300-1151 Incentive and tax information is provided to Area Development by each state's economic development or commerce agency for information purposes only and is subject to revision at any time by the state government. Please contact the state agency directly for full requirements and offerings. This information was last updatedJanuary 2016.

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