COST OF BUSINESS
The Buckeye State Advantage
Businesses find that it costs less to do business in Ohio than in many other Midwestern states. A report released by Ernst & Young LLP and the Council on State Taxation (COST) ranks Ohio among the top states for favorable business tax rates on new investments. Our strategic location and proximity to major markets reduces shipping time and rates and our lower hourly wages and competitive real estate options make Ohio a great alternative to many other regions.
CORPORATE INCOME TAX
PERSONAL INCOME TAX RATE
0% - 4.997%
GROSS RECEIPTS TAX
COST OF LIVING INDEX
91.7 / 100
STATE INVENTORY TAX
$2.7 billion budget reserve
7th largest economy in the U.S., 21st worldwide
The state’s Common Sense Initiative has created a jobs-friendly regulatory environment
Accelerated environmental permitting process takes 180 days or less
No corporate income or profits tax
No tax on products sold outside of Ohio
No tax on machinery and equipment investments
No tax on R&D investments
Only one state business tax – the Commercial Activity Tax (0.26%)
From 2012-2017, Ohio cut taxes by $4.9 billion – the largest tax cut by total in the U.S.
Tax 2018 Accolades
Ernst & Young's 2018 U.S. Investment Monitor ranks Ohio No. 1 in the nation in jobs and projects.
Site Selection ranks Ohio No. 4 for state business climate, up from No. 9 in 2011.
Chief Executive ranks Ohio No. 9 in its Best States for Business rankings, up from 41 in 2011.
BUSINESS COST COMPARISON - MIDWEST REGION
(a) The effective local income tax rate is calculated by taking the mean of the income tax rate in the most populous city and the capital city.
(b) City, county, and municipal rates vary. These rates are weighted by population to compute an average rate.
(c) Highest new employer (non-construction/mining) rate multiplied by highest new employer wage base.
(d) QCEW 2017 - Statewide, Total all industries