Filing Ohio State Taxes

In 2007 Ohio made a concerted effort to phase down its state income tax rates. In 2008 the top tax rate in the state of Ohio is 6.555%, which, when compared to previous years was quite a bit lower. According to media reports, the across-the-board rate cuts in the state of Ohio are set to continue for the following two years as a benefit to the tax payers.

State income tax Summary

Personal Income Tax

As a resident of Ohio, you need to pay personal income tax on the basis of these rates :

• You need to pay 0.649% on the first $5,000 of taxable income.
• You need to pay 1.2999% on taxable income between $5,001 and $10,000.
• You need to pay 2.598% on taxable income between $10,001 and $15,000.
• You need to pay 3.247% on taxable income between $15,001 and $20,000.
• You need to pay 3.895% on taxable income between $20,001 and $40,000.
• You need to pay 4.546% on taxable income between $40,001 and $80,000.
• You need to pay 5.194% on taxable income between $80,001 and $100,000.
• You need to pay 6.031% on taxable income between $100,001 and $200,000.
• you need to pay 6.555% on taxable income of more than $200,001.

Many of the cities in Ohio also levy municipal income taxes and the state of Ohio also imposes a school district income tax. This tax is totally different from federal, state and municipal income taxes and is collected with the help of employer withholding, annual returns and individual quarterly estimated payment.

Sales Tax

The sales tax rate in the state of Ohio is 5.5%. In some cases, regional transit authorities and counties also levy sales tax in multiples of 0.25%. Whatever the case, the total combined rate cannot cross 8.5%.

Personal and Real Estate property Tax

According to Ohio law, tangible personal property employed in business is taxed. However, there are some signs that this law will be erased by 2009. The Property Tax Administration Fund program plays a prominent part in covering the costs of the Department of Taxation. The Department of Taxation administers all the local property tax programs in Ohio.

Inheritance and Estate Tax

You do not need to pay any inheritance tax in the state of Ohio.

Ohio Tax Facts

The Ohio Department of Taxation provides you with number of online options to file tax returns. If you want to check the status of your refunds, you can easily do so online.