Ohio State Taxes: Everything You Need to Know

You should keep a 'Buck-eye' on Ohio tax rates.

The average Ohioan pays nearly $10,000 a year in taxes, a level that puts them firmly in the bottom half of states for total taxes paid. All told, Ohioans can enjoy a relatively simple tax structure that won’t break the bank. Of that nearly $10,000 tax bill, less than half can be attributed to Ohio state tax.

Here’s a closer look at the Ohio tax rates and how they could affect you and your finances living in the Buckeye State.

Ohio State Taxes
Rate Range of Taxes0% to 8%
Income Tax Rate Range0% – 4.997%
Sales Tax Rate Range6.5% – 8%
Effective Property Tax1.553%
Estate TaxN/A

Ohio Income Tax Rate

The average Ohioan ends up paying the state just over $1,400 in state income taxes each year. If that sounds steep, keep in mind that another $5,250-plus is headed to the federal government.

Ohio Income Tax Rate
IncomeTax Rate
$0 to $10,6500.000%
$10,651 to $16,0001.980%
$16,001 to $21,3502.476%
$21,351 to $42,6502.969%
$42,651 to $85,3003.465%
$85,301 to $106,6503.960%
$106,651 to $213,3504.597%
More than $213,3504.997%

Income tax rates in Ohio for the 2008 taxable year were 16.8 percent lower than they were for 2004 after a series of five annual cuts were scheduled in 2005. Ohio state income tax brackets change every year to adjust to inflation, so although the current top bracket starts at $213,350, the starting figure has been increasing modestly in recent years to reflect the increase in the cost of various goods and services. This is calculated in August of each year.

Keep in mind, though, that these are just the state rates. For someone earning more than $213,350 a year, you’ll owe $8,178.16 in addition to the 4.997 percent of the excess over $213,350.

Related: Taxable Income You Must Report to Avoid an IRS Audit

Ohio Sales Tax Rate

Sales tax in Ohio features a state-wide base rate of 5.75 percent, but county governments and regional transit authorities might charge additional sales tax.

Ohio State Sales Tax
Statewide Rate5.75%
Lowest Effective Rate6.5%
Highest Effective Rate8%

The highest rate comes from Cleveland’s Cuyahoga County — where there’s a 2.25 percent markup by the county — whereas the lowest rate can be found in Butler, Stark and Wayne counties — each of which only tacks on 0.75 percent to the statewide base rate.

Like most states, Ohio won’t charge sales tax on every transaction. A number of goods are exempted from sales tax, typically those falling into the category of “necessities” like items purchased with food stamps, prescription drugs or utilities.

Find Out: How Much Money You Would Have If You Never Paid Taxes

Ohio Property Tax Rate

Ohio property tax rates will vary depending on the locality as property taxes are typically collected at the city or county level, but the effective rate statewide averages out to 1.553 percent. The average Ohio resident ends up shelling out just over $2,000 a year in taxes based on that average rate and the median home value in the state.

If you’re wondering where rates are the highest, once again it’s Cuyahoga County, where the average effective rate is 2.38 percent.

See: How Much You’re Really Paying in Property Taxes

Ohio Estate Tax Rate

The estate tax in Ohio was repealed effective Jan. 1, 2013, for estates of those with a date of death on or after that date. So even though estates are still subjected to any federal rates, the state won’t take a slice.

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