Flat-Fee Tax Preparation for Ohio Residents

Ohio has a graduated income tax with a top rate of 3.75% — the top rate was recently reduced and applies to income over $115,300

Ohio cities and municipalities impose local income taxes — many cities use RITA (Regional Income Tax Agency) or CCA (Central Collection Agency) for collection — rates vary widely by municipality

Ohio's Commercial Activity Tax (CAT) is a gross receipts-style tax on businesses with Ohio taxable gross receipts over $150,000 — separate from income tax and applies regardless of profitability

OH does not tax Social Security benefits, and provides a retirement income credit for taxpayers age 65+ with retirement income

Ohio's pass-through entity tax election allows eligible S-corps and partnerships to pay OH income tax at the entity level for SALT cap planning

Ohio does not impose a state estate tax (it was repealed in 2013) and has no inheritance tax

OH real estate conveyance fee is $1 per $1,000 of value at the state level plus county conveyance fees — combined rates vary by county

Ohio's depreciation rules generally conform to federal, benefiting real estate investors and capital-asset-heavy businesses

Ohio Real Estate Tax

Ohio's real estate market features active investor activity in Columbus, Cleveland, Cincinnati, and their suburbs. Low state income tax rates and no estate tax reduce the tax burden for OH real estate investors. Municipal income taxes on rental income vary by municipality — investors with properties in multiple OH cities must track local filing obligations.

Ohio Business Tax

Ohio businesses face both the state income tax and the Commercial Activity Tax on gross receipts — a dual obligation that is sometimes overlooked. The PTET election provides SALT cap relief. Municipal income taxes create compliance complexity for businesses with employees in multiple OH cities. Ohio's declining top income tax rate improves its competitiveness.

Do I need to file an Ohio state tax return?

If you are an Ohio resident or earned OH-source income above the filing threshold, you must file a OH IT 1040. Ohio also requires most residents to file a municipal income tax return for their city of residence. If you operate a business in Ohio with gross receipts over $150,000, you may also owe the Commercial Activity Tax.

What is Ohio's Commercial Activity Tax?

The Ohio CAT is a gross receipts tax imposed on businesses with Ohio taxable gross receipts over $150,000 annually. The tax is $150 minimum for receipts between $150,000–$1M, then 0.26% on receipts above $1M. The CAT applies regardless of whether the business is profitable — it's a cost of doing business in Ohio that must be factored into pricing and business planning.

How do Ohio municipal income taxes work?

Most Ohio cities impose a local income tax on wages earned within city limits and, in some cases, on business income. Rates range from 1% to 3%. If you live and work in different OH cities, you may owe both your city of residence and your city of employment, with a credit mechanism to prevent full double taxation. Many cities participate in RITA or CCA for filing and collection. Businesses with employees in multiple OH cities must withhold and remit to each city.

Does Ohio have a pass-through entity tax?

Yes. Ohio offers a pass-through entity tax election for eligible S-corps and partnerships to pay OH income tax at the entity level. The payment is deductible on the federal return as a business expense, providing SALT cap relief. The interaction between the state PTET and municipal income taxes should be evaluated carefully, as the PTET covers state but not municipal income tax.