Corporate Income Tax Rate Ohio

The tax applies to a business s gross taxable income and the rate you pay depends on how much your business has earned in a tax year.

Corporate income tax rate ohio. The corporation franchise tax a business privilege tax that dates back to 1902 was repealed for tax year 2014 and after see amended substitute house bill 510 129th general assembly. Similar to the personal income tax businesses must file a yearly tax return and are allowed deductions such as wages paid cost of goods sold and other qualifying business expenses. While ohio does not generally tax businesses based on their net income it does tax individual income at marginal rates ranging from 1 980 up to 4 997. Instead most corporations are now subject to the commercial activity tax cat or the financial institutions tax fit.

Corporations c corporations s corporations llcs partnerships and sole proprietorships. The ohio corporate income tax is the business equivalent of the ohio personal income tax and is based on a bracketed tax system.