October 17, 2018

Ohio: Who Pays? 6th Edition


OHIO

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OHIO STATE AND LOCAL TAXES

Taxes as Share of Family Income

Top 20%
Income Group Lowest
20%		 Second
20%		 Middle
20%		 Fourth
20%		 Next
15%		 Next
4%		 Top
1%
Income Range Less than
$19,000		 $19,000 to
$33,900		 $33,900 to
$55,500		 $55,500 to
$91,800		 $91,800 to
$188,400		 $188,400 to
$455,700		 over
$455,700
Average Income $11,200 $26,500 $44,100 $71,700 $123,100 $267,000 $1,052,700
Sales & Excise Taxes 7.0% 5.8% 4.9% 4.0% 3.0% 1.9% 1.0%
General Sales – Individuals 3.0% 2.8% 2.5% 2.2% 1.7% 1.1% 0.6%
Other Sales & Excise – Ind. 2.1% 1.4% 1.0% 0.7% 0.5% 0.3% 0.1%
Sales & Excise on Business 1.9% 1.6% 1.3% 1.0% 0.7% 0.4% 0.3%
Property Taxes 3.8% 2.7% 2.8% 3.0% 2.8% 2.7% 1.9%
Home, Rent, Car – Ind. 3.8% 2.7% 2.7% 2.8% 2.7% 2.2% 0.7%
Other Property Taxes 0.1% 0.1% 0.1% 0.2% 0.2% 0.5% 1.2%
Income Taxes 1.5% 2.2% 3.1% 3.5% 4.0% 3.8% 3.6%
Personal Income Tax 1.5% 2.2% 3.1% 3.5% 4.0% 3.7% 3.6%
Corporate Income Tax 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.1%
TOTAL TAXES 12.3% 10.8% 10.7% 10.4% 9.8% 8.3% 6.5%

Individual figures may not sum to totals due to rounding. Download the table

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TAX FEATURES DRIVING THE DATA in Ohio

Progressive Features

Regressive Features
  • Graduated personal income tax structure
  • Provides an Earned Income Tax Credit (EITC)
  • Sales tax base excludes groceries
  • Imposes a gross receipts tax in lieu of a corporate profits tax
  • EITC is limited and non-refundable
  • Allows income tax exclusion and lower rate for pass-through business income
  • Does not levy a tax on estates or inheritances

ITEP Tax Inequality Index

According to ITEP’s Tax Inequality Index, which measures the impact of each state’s tax system on income inequality, Ohio has the 13th most unfair state and local tax system in the country. Incomes are more unequal in Ohio after state and local taxes are collected than before. (See Appendix B for state-by-state rankings and the methodology section for additional detail on the index.)

Note: Figures show permanent law in Ohio enacted through September 10, 2018, at 2015 income levels. Top figure represents total state and local taxes as a share of non-elderly income. The sixth edition of Who Pays does not include the impact of the federal deduction for state and local taxes (SALT) because policy changes in the 2017 federal Tax Cuts and Jobs Act temporarily limited the extent to which the SALT deduction functions as a generalized offset of state and local taxes.