Ohio Tax Benchmarking Analysis | Ohio Chamber of Commerce Research Foundation

Ohio Tax Benchmarking Analysis: A Deep Dive into Ohio's Tax Competitiveness

The Ohio Chamber of Commerce Research Foundation, in partnership with EY, has conducted a comprehensive analysis of Ohio's tax landscape. This in-depth study, the Ohio Tax Benchmarking Analysis, provides a detailed comparison of Ohio's state and local taxes with those of six peer states: Indiana, Michigan, Minnesota, Georgia, North Carolina, and Texas.

Key Findings

Ohio's Economy is Strong: Ohio boasts a high per capita Gross State Product (GSP), ranking 3rd among peer states.
Average Overall Tax Burden: Ohio's combined state and local tax burden is moderate compared to peer states. However, Ohio's local taxes, particularly municipal income taxes, are among the highest in the nation.
High Local Taxes: Ohio's local tax rates exceed those of peer locations for over half of the industries analyzed, with property and local income taxes being key drivers.
Costly Local Income Tax Compliance: The complexity and administrative burden of Ohio's municipal income tax system is a significant challenge for businesses, especially small businesses.
Sales and Use Taxes Competitive: Ohio's sales and use taxes, including local rates, are generally competitive with peer states. However, Ohio taxes a wider range of goods and services than most peer locations.
Highest Maximum Unemployment Tax Rate: Ohio has the highest maximum unemployment tax rate for new employers among peer states.

Why This Study Matters

This study highlights the importance of understanding the complexities of Ohio's tax system. The findings underscore the need for policymakers and business leaders to work together to create a tax environment that supports economic growth and competitiveness.

Download the Full Study

Gain a deeper understanding of Ohio's tax landscape and its impact on businesses. Download the full Ohio Tax Benchmarking Analysis report today.

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About This Study:

The Ohio Tax Benchmarking Analysis was commissioned by the Ohio Chamber of Commerce Research Foundation and conducted by EY. The study utilizes a comprehensive methodology, including analysis of aggregate tax collections data, a cash flow model for business taxes, and a compliance survey of Ohio businesses.

We encourage you to explore the full report to gain valuable insights into Ohio's tax competitiveness and its implications for your business.

Disclaimer: The information on this landing page is intended for informational purposes only and should not be considered tax advice. Please consult with a qualified tax professional for personalized guidance.