| The State of Ohio, or the Buckeye's state as it is | | | | previous 6% level. Local sales taxes may also be |
| known, is in the process of cutting its tax rates. In 2005 | | | | collected by counties and regional transport authorities. |
| the top rate of income tax was 7.185%. Now it is | | | | There is a maximum level of 1.5% on regional transport |
| 6.87% with further cuts planned until 2009. | | | | sales taxes. Local authorities can increase their sales |
| There are seven brackets of income tax. On the first | | | | taxes in increments of 0.25%. There is a total limit for |
| $5000 of taxable income tax is paid at 0.681%. This | | | | the sales tax from state, county and transit authorities |
| increases to 1.361% on incomes between $5,001 and | | | | of 8.5% |
| $10,000. It is 2.722% on taxable income between | | | | Tangible personal property for residential, agricultural |
| $10,001 and $15,000, rising to 3.403% on incomes | | | | and business use is subject to taxation. Business |
| between $15,001 and $20,000. On taxable incomes | | | | property tax is in the process of being phased out and |
| between $20,001 and $40,000 it is 4.083%. Between | | | | will be eliminated by 2009. Local tax programs are |
| $40,001 and $80,000 it is 4.764%. It is 5.444% on | | | | administered by the Property Tax Administration Fund. |
| incomes between $80,001 and $100,000 and 6.32% on | | | | The 10% tax rollback on commercial and industrial |
| incomes from $100,001 and $200,000. The top rate on | | | | properties was removed in 2005. There is still a |
| incomes over $200,001 and above is 6.87%. | | | | rollback for residential and agricultural properties. |
| In addition to the state income tax there are local | | | | There is no inheritance or estate tax in Ohio. Federal |
| income taxes levied by some municipalities in Ohio. | | | | tax law eliminated the tax credit for state death duties |
| Income taxes to fund the public education system are | | | | from January 1 2005. Estates of those who died on or |
| levied by some school districts. The school district | | | | after that date are not liable to tax. |
| income tax is collected through employers. The | | | | Tax returns can be filed on line in Ohio. All state |
| employer withholds an amount based on the individual | | | | income tax returns and local taxes can be filed in this |
| quarterly estimated payments and annual returns. | | | | way. Tax payers in Ohio can check the status of all |
| These funds are earmarked specifically for the | | | | their tax returns, including school district income tax, on |
| support of school districts. | | | | line. |
| Residents of those school districts that collect an | | | | Tax returns must be filed by April 15 every year. That |
| income tax must file an annual return on Ohio form | | | | is the same as in other states. If that date falls on a |
| SD100. | | | | Sunday or a public holiday then they can be filed the |
| State sales tax is 5.5%. It has been cut from its | | | | next day. |