Ohio taxes

Ohio taxes personal income at 0% to 3.125%, but business income gets its own treatment: the first $250,000 is deducted, and the rest is taxed at a flat 3%. Ohio has no business income tax. Every kind of business, including a sole proprietor, falls under the commercial activity tax, which charges 0.26% of Ohio gross receipts above $6,000,000. Below that, nothing is owed.

Personal income tax

Ohio residents file Form IT 1040, due April 15, 2026, the same day as the federal return. Ohio has no extension form of its own, but if you file an IRS extension your Ohio due date moves to October 15, 2026.

Ohio splits your income in two. Nonbusiness income, like wages, is taxed at 0% up to $26,050, 2.75% up to $100,000, and 3.125% above, the same for every filing status. Business income, including a sole proprietor's profit, gets a deduction of up to $250,000 ($125,000 married filing separately), and the rest is taxed at a flat 3%.

Many Ohio school districts also charge their own income tax, filed on Form SD 100 with the same due date.

Return

Form IT 1040

Due date

April 15, 2026, or October 15, 2026 with an IRS extension

Nonbusiness income

0% up to $26,050, 2.75% up to $100,000, and 3.125% above

Business income

First $250,000 deducted ($125,000 married filing separately), then a flat 3%

Personal exemption

$2,400 each up to $40,000 of income, $2,150 up to $80,000, $1,900 up to $749,999, none above

School district tax

Charged by many districts, on Form SD 100

Sole proprietor

Your business profit is taxed on your own Form IT 1040 as business income, with the $250,000 deduction and the flat 3% rate above.

The commercial activity tax reaches a sole proprietor too, but only above $6,000,000 of Ohio gross receipts. A business that crosses that line must register within 30 days, and registering late costs up to $100 a month.

Single-member LLC

The LLC's profit is taxed on your own Form IT 1040 as business income, with the $250,000 deduction and the flat 3% rate.

Like every business, the LLC falls under the commercial activity tax only above $6,000,000 of Ohio gross receipts.

Partnership

A partnership files the Ohio pass-through entity return, Form IT 4708 or IT 1140 (pass-through entity). The profit passes through to the partners, who report it on their own returns.

Ohio has no income tax on businesses. Instead, the commercial activity tax charges 0.26% of Ohio gross receipts above $6,000,000 for 2025. It is charged on revenue, not profit, so a business can owe it in a year it loses money, but most small businesses are under $6,000,000 and owe nothing.

S corporation

An S corporation files the same pass-through entity return, Form IT 4708 or IT 1140 (pass-through entity). The profit passes through to the shareholders, who report it on their own returns.

Ohio has no income tax on businesses. Instead, the commercial activity tax charges 0.26% of Ohio gross receipts above $6,000,000 for 2025. It is charged on revenue, not profit, so a business can owe it in a year it loses money, but most small businesses are under $6,000,000 and owe nothing.

C corporation

Ohio has no income tax on businesses. Instead, the commercial activity tax charges 0.26% of Ohio gross receipts above $6,000,000 for 2025. It is charged on revenue, not profit, so a business can owe it in a year it loses money, but most small businesses are under $6,000,000 and owe nothing. A corporation above that level registers within 30 days of crossing it and files the Commercial Activity Tax return.

The annual minimum tax that used to catch every registered business was abolished from 2024. A business based outside Ohio can still owe the tax, for example by owning $50,000 of Ohio property or paying $50,000 of Ohio payroll.

Corporate income tax

None

Commercial activity tax

0.26% of Ohio gross receipts above $6,000,000

Annual minimum tax

Abolished from 2024

Estimate your state tax

Pick your business type and enter this year's numbers to see the state business tax Ohio charges. It assumes all your sales are in Ohio.

An estimate for planning, not tax advice.

Sources

• Ohio 2025 IT 1040 instruction booklet
• tax.ohio.gov Commercial Activity Tax general information (read 2026-08-13)
• tax.ohio.gov CAT registration form CAT 1

Last reviewed August 2026.