Ohio Tax Reform

Making a commitment to eliminate a burdensome tax system, Ohio in 2005 implemented full-scale, sweeping tax reform, including business grants and tax credits through the Ohio Tax Reform. Ohio's new business taxation model will mean a reduction in tax burden of up to 63 percent by 2010; the first year reform is fully implemented. Ohio and our region also offer numerous attractive incentives, grants and financing assistance options to help businesses succeed, such as business grants and tax credits.

Check out a summary of Ohio Tax Reform here

Ohio's tax reform means businesses can:

• Reduce operating costs - No tax on inventory or corporate income
• Enhance productivity - No tax on investments in machinery and equipment
• Attract talent - Shrink labor costs through a 21% reduction in personal income tax, new top rate of 5.9%
• Enjoy a level playing field - All companies taxed the same low rate. Tax on net gross receipts of a business’s activity within Ohio adopted in place of corporate income tax, with a flat, low rate of .26% on sales in State of Ohio
• Boost return on investment - No tax on product sold to customers outside Ohio
• Reward entrepreneurship - First $1 million in gross receipts are tax-free

Put another way, here is what Ohio tax reform means to your company:

• Corporate Income Tax - ELIMINATED
• Personal Property Tax - ELIMINATED
• Personal Income Tax - REDUCED
• State Sales Tax - REDUCED
• Commercial Activity Tax (CAT) - ADOPTED

Read House Bill 66 text

Before and After

Ohio is executing a tax reform combined with business grants and tax credits, substantially lowers the cost of doing business in the state - with the lowest taxes in the Midwest by 2010.

Ohio's comparable rankings to state competitors are expected to dramatically improve with the 2010 conclusion of the state's five-year tax reform plan. Ohio will become even more competitive, not only when compared with primary coastal markets, but also among the cohort of states with which Ohio routinely views for business. Ohio's favorable business climate and high quality of living, combined with low business and personal costs and beneficial business grants and business tax credits, make the state an increasingly viable location for business growth.

For more information on the State of Ohio's aggressive tax reform, click here