Tax policy in Ohio

in Ohio

Fiscal Budgets Ohio state budget and finances Tax policy in Ohio Finance Financial regulation in Ohio Pensions Public pensions in Ohio Pension health in Ohio Civil liberties Affirmative action in Ohio Campaign finance requirements in Ohio Campaign finance requirements for Ohio ballot measures Nonprofit regulation in Ohio Education Charter schools in Ohio Higher education in Ohio Public education in Ohio School choice in Ohio Elections Ballot access Ballot access requirements for political candidates in Ohio Ballot access requirements for political parties in Ohio Political parties in Ohio Ballot access requirements for presidential candidates in Ohio Redistricting in Ohio Voting in Ohio Energy and Environment Energy policy in Ohio Fracking in Ohio Oil and gas extraction on federal land in Ohio Endangered species in Ohio Environmental policy in Ohio Healthcare Healthcare policy in Ohio Medicaid spending in Ohio Effect of the Affordable Care Act in Ohio Immigration Immigration in Ohio

This article does not contain the most recently published data on this subject. If you would like to help our coverage grow, consider donating to Ballotpedia.

Tax policy in Ohio

Tax rates in 2017

Personal income tax: 0.495% to 4.997%

State sales tax: 5.75%

Corporate income tax: None

Tax revenues in 2016

Total tax collections: $28.69 billion

Tax collections per capita: $2,471

Total state expenditures • State debt • Ohio state budget and finances

Ohio generates the bulk of its tax revenue by levying a personal income tax and a sales tax. The state derives its constitutional authority to tax from Article XII of the state constitution.^[1][2]

Tax policy can vary from state to state. States levy taxes to help fund the variety of services provided by state governments. Tax collections comprise approximately 40 percent of the states' total revenues. The rest comes from non-tax sources, such as intergovernmental aid (e.g., federal funds), lottery revenues and fees. The primary types of taxes levied by state governments include personal income tax, general sales tax, excise (or special sales) taxes and corporate income tax.^[3]

Tax rates

Personal income tax

See also: Personal income tax

Ohio utilized a personal income tax rate ranging from 0.495 percent to 4.997 percent in 2017. An individual's tax liability varies according to his or her tax bracket. A tax bracket is the income range to which a tax rate applies.^[4]

The table below summarizes personal income tax rates for Ohio and neighboring states in 2017.^[4]

Personal exemptions

States that collect a personal income tax allow individuals to claim personal exemptions on income taxes each year. The personal exemption indicates that only a person's income above a certain level is subject to taxation. ^[5]

Exemptions work by reducing the amount of an individual's taxable income. Both state and federal taxes allow exemptions. The state exemptions for Ohio and its neighboring states as reported by the Tax Policy Center are reported in the chart below.^[6]

Capital gains tax

See also: Capital gains tax

A capital gains tax is a tax levied on the profit gleaned from the sale of a capital asset. Examples of capital assets include stocks, businesses, land parcels, homes, personal items and more. Capital gains are taxable at both the federal and state levels. While the federal government taxes capital gains at a lower rate than regular personal income, states usually tax capital gains at the same rates as regular income. ^[7][8][9]

The table below summarizes uppermost capital gains tax rates for Ohio and neighboring states in 2015.

Sales tax

See also: Sales tax

Almost all states employ a statewide sales tax, which ranges from 2.9 percent in Colorado to 7.25 percent in California. Additionally, many states allow the levying of local sales taxes, which are then added to the state's tax.

Ohio's state sales tax was 5.75% percent in 2017. The average local tax was about 1.39% percent, meaning that the average combined sales tax was about 7.14% percent. The table below displays the state tax rates, average local tax rates, and average combined tax rates for Ohio and its neighboring states.^[10]

The table below summarizes sales tax rates for Ohio and neighboring states in 2017 as well as the state's policy with respect to types of items commonly exempted from sales tax (i.e., food, prescription drugs and nonprescription drugs).^[11]

Excise taxes

See also: Excise taxes

Excise taxes, also known as selective sales or differential commodity taxes, are levied for the sales of specific goods or services. Excise taxes are considered indirect taxes because they are not charged directly to individuals. In most cases, the excise tax is paid by the producer or seller of an item. The cost of the tax is then included in the sale price of the item and passed on to the consumer. The tables below provide excise tax rates for motor fuel, alcohol and cigarettes in Ohio and neighboring states.^{[12][13][14][15]}

Corporate income tax

See also: Corporate income tax

Ohiodoes not levy a corporate income tax. The table below compares the corporate income tax rates of some of its neighboring states.^[16][17]

Property tax

See also: Property tax

Most often, property tax applies to real estate, although some states levy property taxes on other types of personal property, such as automobiles. Generally speaking, an individual's property tax liability is determined by the tax rate and the tax base, which is "determined by both the assessed value of the property and ... the share of the assessed value that is subject to tax." To learn more about property taxes, including tabulation methods, see this page. Property tax rates can vary substantially from locality to locality within a state.^{[18][19][20] [18][19]}

The table below provides the mean amount of property taxes paid in 2012, as well as property tax as a mean percentage of home value for 2014, in Ohio and neighboring states.^[18]

The table below lists per capita state and local property tax collections for Ohio and neighboring states for fiscal year 2013.^[21]

Estate and inheritance taxes

See also: Estate and inheritance taxes

Estate and inheritance taxes are levied on the property of deceased individuals (decedents). Generally speaking, an estate tax is applied to the value of a decedent's property and is paid from the estate before distribution to any heirs. By contrast, an inheritance tax is paid by the heir or heirs of a decedent's assets.^[22][23][24]

Ohio does not levy an estate tax, although residents are liable for the federal estate tax. The table below summarizes the estate tax rates for Ohio and neighboring states in 2016.^[24]

Tax revenues

See also: Ohio state budget and finances

The table below breaks down state government tax collections by source in 2016 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "2016 population" and "Per capita collections" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "2016 population" and "Per capita collections" have not been abbreviated.^[25]

The table below lists 2016 tax collections by source as percentages of total collections. About 63.5 percent of Ohio's total state tax collections came from sales taxes and gross receipts.^[25]

Tax ballot measures

Voting on taxes
Ballot measures
By state
By year
Not on ballot
Local City taxes County taxes School taxes Property taxes Sales taxes Income taxes Other taxes

See also: Taxes on the ballot and List of Ohio ballot measures

Ballotpedia has tracked the following ballot measures relating to taxes in Ohio.

1. Ohio Tax Rate and Property Classification Initiative (1914)
2. Ohio Tax Limitations Initiative (1922)
3. Ohio Motor Vehicle Tax Initiative (1934)
4. Ohio Gas Tax Initiative (1934)
5. Ohio Mill Tax Limitation on Real Estate Initiative (1933)
6. Ohio Use of Motor Vehicle License and Gas Taxes Initiative (1947)
7. Ohio Industrial Plant Tax Incentives for Jobs Initiative (1975)
8. Ohio Transportation Bonds and Gas Tax Initiative (1975)
9. Ohio Bonds and Sales Tax for Capital Improvements Initiative (1975)
10. Ohio Voter Approval of Income Tax Levies and Increases Initiative (1972)
11. Ohio Supermajority Requirement for Tax Increases Initiative (1983)
12. Ohio Repeal 1982 Tax Increases Initiative (1983)
13. Ohio Prohibition of Taxes on Carbonated Beverages Initiative (1994)
14. Ohio Sales Tax Increase for Public Schools and Homestead Tax Changes Measure (May 1998)
15. Ohio Classification of Real Property Amendment (1980)
16. Ohio Homestead Tax Reduction for Disabled Residents Amendment (1974)
17. Ohio Homestead Tax Exemption Amendment (1968)
18. Ohio Municipal Bonds Tax Exemption Amendment (1913)
19. Ohio Spousal Continuance for the Homestead Tax Exemption Amendment (1990)
20. Ohio Homestead Tax Reduction for Seniors Amendment (1970)
21. Ohio Classification of Property for Taxation Amendment (1919)
22. Ohio Real Property Taxation Amendment (1929)
23. Ohio Income and Inheritance Taxes to Local Jurisdictions Amendment (1930)
24. Ohio Tax Assessment of Outdoor Recreational Land Amendment (1975)
25. Ohio Tax Assessments of Agricultural Lands Amendment (1973)
26. Ohio Taxation of Real Estate, Tangible Property, and Intangible Property Amendment (1925)
27. Ohio Income Amount Exempt from Taxation Amendment (1973)
28. Ohio Establishment of a Poll Tax Amendment (1921)
29. Ohio Estate Taxes and State Debt Amendment (June 1976)
30. Ohio Exempting Bonds from Taxation Amendment (1915)
31. Ohio Laws Against the Double Taxation of Property Amendment (1918)
32. Ohio Tax Levies, Bond Issuance, and Local Budgets Referendum (1923)
33. Ohio Changes to State Taxes Initiative (1980)
34. Ohio Property Tax Assessment and Office of the Elective Assessor Referendum (1923)
35. Ohio Tax Increase for School Foundation Program Amendment (May 1965)
36. Ohio Provisions for Imposing Taxes and Exemptions Amendment (June 1976)
37. Ohio Regulations on Taxation Amendment (September 1912)
38. Ohio Classification of Taxes, Amendment 1 (1908)
39. Ohio Tax Exemptions for Bonds, Amendment 2 (1905)
40. Ohio Taxation, Amendment 4 (1903)
41. Ohio Sales Tax Increase to Fund High-Speed Rail Amendment (1982)
42. Ohio Bank Taxation, Amendment 3 (October 1857)
43. Ohio Taxing Power of the General Assembly, Amendment 2 (1889)
44. Ohio Property Taxes and Exemptions, Amendment 1 (1891)
45. Ohio Property Taxes and Exemptions, Amendment 2 (1893)
46. Ohio Dog Tax Amendment (October 1875)
47. Ohio Toxic Chemicals Warning Initiative (1992)
48. Ohio Payment of Political Subdivisions' Debts Amendment (June 1976)
49. Ohio Prohibition of the Taxation of Food Initiative (1936)
50. Ohio Property Classification for Taxation Purposes Initiative (1918)
51. Ohio Special Property Tax Assessments for Public Improvement Projects Amendment (August 1926)

Recent news

The link below is to the most recent stories in a Google news search for the terms Ohio taxes. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

See also

• Ohio
• Ohio state budget and finances
• Personal income tax
• Sales tax
• Corporate income tax
• Property tax

External links

• Tax Policy Center
• Federation of Tax Administrators
• Tax Foundation

Footnotes

v • e Budget policy Budget background Government budgets • Cost of state transparency websites • State budget issues • Public employee salaries • Public pensions • States with spending online • Glossary of state budget terms • Total state expenditures • State spending by function as a percent of total expenditures State budget and finance pages Alabama • Alaska • Arizona • Arkansas • California • Colorado • Connecticut • Delaware • Florida • Georgia • Hawaii • Idaho • Illinois • Indiana • Iowa • Kansas • Kentucky • Louisiana • Maine • Maryland • Massachusetts • Michigan • Minnesota • Mississippi • Missouri • Montana • Nebraska • Nevada • New Hampshire • New Jersey • New Mexico • New York • North Carolina • North Dakota • Ohio • Oklahoma • Oregon • Pennsylvania • Rhode Island • South Carolina • South Dakota • Tennessee • Texas • Utah • Vermont • Virginia • Washington • West Virginia • Wisconsin • Wyoming Tax policy background Personal income tax • Sales tax • Corporate income tax • Property tax • Excise taxes • Estate and inheritance taxes • Capital gains tax State tax policy pages Alabama • Alaska • Arizona • Arkansas • California • Colorado • Connecticut • Delaware • Florida • Georgia • Hawaii • Idaho • Illinois • Indiana • Iowa • Kansas • Kentucky • Louisiana • Maine • Maryland • Massachusetts • Michigan • Minnesota • Mississippi • Missouri • Montana • Nebraska • Nevada • New Hampshire • New Jersey • New Mexico • New York • North Carolina • North Dakota • Ohio • Oklahoma • Oregon • Pennsylvania • Rhode Island • South Carolina • South Dakota • Tennessee • Texas • Utah • Vermont • Virginia • Washington • West Virginia • Wisconsin • Wyoming Comparative analysis of state debt Federal outlays to state government (2014-2017) • State tax revenue projections and shortfalls (2020-2021) • Proportion of state government general revenues from the federal government (2014-2018) • State debt per capita (2014-2018) • State unfunded public pension liabilities, 2003-2018