Ohio

Ohio imposes NO CORPORATE INCOME TAX on C-corporations. However, Ohio imposes a gross receipts or margin tax in lieu of a corporate income tax. Ohio's rate structure is classified as "Gross Receipts Only" for purposes of this comparison.

Ohio has no corporate income tax. Instead, Ohio imposes the Commercial Activity Tax (CAT) on Ohio-source gross receipts. Effective 2025, businesses with Ohio gross receipts of $6 million or less owe no CAT; rate is 0.26% on receipts above the exclusion. Threshold rises to $6 million in 2025.

Ohio's Commercial Activity Tax (CAT) applies to gross receipts. For 2025, the exclusion is $6 million; receipts above that are taxed at 0.26%. Substantial reform in 2024 eliminated CAT for most small businesses.

S-corps, partnerships, and LLCs are not subject to Ohio corporate income tax (since none exists). Pass-through entities may elect to pay PTE tax under HB 33 (2023) at rates matching the individual income tax to provide federal SALT cap workaround.

For current corporate tax rules in Ohio, consult the state's official source at https://tax.ohio.gov/business/ohio-business-taxes/commercial-activities/commercial-activity-tax. Rates and rules change annually — verify with a qualified tax professional before taking any action.