The math is pretty simple. It costs less to live here, and it costs less to do business here. For a resident, the cost of living is below national and regional indexes.
For a business, a lower cost of living, means lower wages. Ohio taxes are some of the most favorable in the USA for manufacturing or any business selling goods and services outside of Ohio.
The State of Ohio has no tax on:
- Corporate profits
- Inventory
- Tangible personal property
- R&D investments
- Products sold to customers outside Ohio
STATE AND LOCAL TAXES
| TAX | LOCALE | RATE |
|---|---|---|
| Corporate Income/Franchise Tax | State | NONE |
| Local | Applies to net profits. Average rate across OhioSE Region: 1.9% | |
| Commercial Activity Tax Takes Place of Gross Receipts Tax and applies only to sales within Ohio | State | In general, the CAT Tax takes effect only for companies with taxable Ohio gross receipts over $150,000 A flat Fee of $150 for companies with gross receipts between $150,000 and $1 million. If gross receipts exceed $1 million, a tax rate of 0.26% is applied to the amount above $1 million plus: $800 for receipts between $1 million to $2 million $2,100 for receipts between $2 million to $4 million $2,600 for receipts more than $4 million |
| Local | N/A | |
| Inventory Tax | State | NONE |
| Real Property Tax Commercial/Industrial | Local | Average effective rate: 1.7% |
| Sales Tax | State | 5.75% |
| Local | OhioSE region average: 1.46% |
Our industrial real estate costs are also generally less than metro areas, further enhancing the OhioSE value proposition.
