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Bankrate's 2009 Tax Guide
State tax pages
Take a state tax expedition. Each of the states has its own way of gathering revenues from its residents.
 
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State tax roundup
Ohio


Ohio continued phasing down its state income tax rates in 2008. The top rate is now 6.24 percent, down from 6.555 percent in 2007. The across-the-board rate cuts are scheduled to continue through 2009. More on the Buckeye State's taxes can be found in the tabbed pages below.

Income
Sales
Property
Estate
Other
Personal income tax
Ohio collects income taxes from its residents at the following rates:
-- 0.618 percent on the first $5,000 of taxable income
-- 1.236 percent on taxable income between $5,001 and $10,000
-- 2.473 percent on taxable income between $10,001 and $15,000
-- 3.091 percent on taxable income between $15,001 and $20,000
-- 3.708 percent on taxable income between $20,001 and $40,000
-- 4.327 percent on taxable income between $40,001 and $80,000
-- 4.945 percent on taxable income between $80,001 and $100,000
-- 5.741 percent on taxable income between $100,001 and $200,000
-- 6.240 percent on taxable income of $200,001 and above.
Ohio state tax returns are due on April 15 or the next business day if that date falls on a weekend or holiday.
Several cities also levy municipal income taxes. Forms for these can be found on the Ohio tax Web site.
  Ohio also has a school district income tax, a levy that is separate from federal, state and municipal income taxes. School district income taxes are collected through employer withholding, individual quarterly estimated payments and annual returns. The money is earmarked specifically to support school districts. You can find your school district's income tax rate using the online search tool. If you lived in a school district that collects an income tax at any time during the tax year, you must file an Ohio form SD 100 (form and instructions).
Sales tax
The state sales tax rate is 5.5 percent.
Counties and regional transit authorities also may levy sales tax in multiples of 0.25 percent up to a maximum additional tax of 1.5 percent. The total combined rate -- state, county and transit authority -- may not exceed 8.5 percent.
Locate the exact sales tax rate for any address in the state with Ohio's Online Rate Finder.
Personal and real property taxes
Ohio's tangible personal property tax has been phased out for general business filers. No annual or new taxpayer returns are required to be filed for tax years 2009 and thereafter. The exceptions to the phase-out, who continue to be subject to the tax, are telephone and inter-exchange telecommunications companies, or entities leasing property to telephone and inter-exchange telecommunications companies.
The state's Property Tax Administration Fund was created to cover the costs the Department of Taxation incurs in administering local property tax programs. The fund is used to pay the operating costs of the divisions involved in overseeing real property taxation, administering the personal property taxes of public utilities and inter-county corporations and expanding audit capacity for personal property taxes.
Current state law requires each county auditor to reduce, or roll back by 10 percent, all nonbusiness real property taxes charged. In addition, county auditor must further reduce the real property tax on owner-occupied property by 2.5 percent. Owner-occupants who are age 65 or older or who are permanently and totally disabled may qualify for an additional reduction in their real property taxes by applying for a homestead exemption. Local governments are fully reimbursed from the state general revenue fund for these tax reductions.
Inheritance and estate taxes
  Ohio has no inheritance tax.
  Ohio does impose a graduated tax on the transfer of assets of an estate.
  Ohio previously levied an additional or pick-up tax, which was the difference between the federal credit for state death taxes and the amount of the basic Ohio estate tax paid. Changes made to the federal estate tax repealed the federal credit allowed for state death taxes for dates of death occurring on or after Jan. 1, 2005. In view of that federal legislation, the Ohio Additional Tax on estates is constructively repealed for decedents' dates of death occurring on or after July 1, 2005.
Other Ohio tax facts
The Ohio Department of Taxation offers numerous online options to Buckeye State residents, including online filing of state income as well as school district income tax returns.
Ohio taxpayers can go online to check the status of their refunds.
You can let Ohio officials know by e-mail of any suspected tax fraud at the state's special Web page.
For more information, contact the Ohio Department of Taxation at (614) 466-2166 or visit its Web site.
To download tax forms on this site, you will need to install a free copy of Adobe Acrobat Reader. Click here for instructions.
-- Updated: Feb. 4, 2009
   





 
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