Ohio Income Tax Guide

The ohio department of taxation is currently phasing in a 21 percent across the board cut in income tax rates that is expected to mean an esti mated 2 3 billion in annual income tax relief when fully phased in for the 2009 tax year.

Ohio income tax guide. Ohio employers also have the responsibility to withhold school district income tax from the pay of employees who reside in a school district that has enacted such a tax. For more information on a particular tax click on the appropriate link below. Line 8a tax on line 7a calculate your tax on your ohio income tax base less business income. If your nonbusiness taxable income is less than 106 000 your tax has been calculated for you in the income tax table found on pages 32 37.

In addition to a state level personal income tax many ohio school districts and municipalities have an income tax. Similarly ohio s statewide sales tax rate is 5 75 but when combined with county sales tax rates ranging from 0 75 up to 2 25 the total average rate is 7 17. It s called a municipal income tax and everyone who lives or works in the city of. The ohio department of taxation administers tax laws and collects taxes in the state of ohio.

All taxpayers can utilize the income tax brackets found on page 32. W 2 s need to reflect the 4 digit school district number. This article focuses on ohio state income tax. 2019 income tax changes.

More details on employer withholding are available below. This page contains a complete list of every tax administered by the ohio department of taxation grouped according to whether the tax tends to apply to businesses or to individuals. The traditional school district income tax base starts with the ohio income tax base reported on line 5 of ohio it 1040 which excludes the personal and dependent exemption deduction reported on line 4. Ohio allows cities to collect income taxes from people who work within but don t live within their borders.

Ohio taxable income tax calculation 0 21 750 0 000 21 751 43 450. Also the tax brackets have been indexed for inflation. Beginning with tax year 2019 ohio income tax rates were adjusted so taxpayers making an income of 21 750 or less aren t subject to income tax. Income tax rates are falling too.

Ohio also has a sales and use tax as well as property taxes. This savings includes about 300 million per year. Alone that would place ohio at the lower end of states with an income tax but many ohio municipalities also charge income taxes some as high as 3.