Ohio: The Buckeye State

Ohio stretches over 115,000 kmĀ² in the American Midwest. In the north, Lake Erie forms a natural border with neighboring Canada. The Ohio River borders the state to the south. Buckeye State has a population of 11.5 million. According to ehuacom, its capital is called Columbus and, with almost 800,000 inhabitants, is also the largest in the state.

Ohio’s economy is made up of growing industries that reflect the Midwest’s industrial leadership and continuous innovation. In 2019, over 130,000 new companies were founded in the state. Compared to 2010, this means an increase of 63 percent. In the latest 2021 CNBC rankings, Ohio ranks tenth in the Top States for Business category, second in cost of doing business, and seventh in access to capital.

Ohio Location Map

THRIVING ECONOMY

With a gross national product (GSP) of almost 700 billion dollars in 2019, Ohio is the seventh largest economy in the USA and ranks 21st worldwide. Ohio ranks fourth in manufacturing gross domestic product.

Recent indicators leave no doubt that Ohio is the best-positioned state in the Midwest region to recover from the economic downturn. Growth in Ohio’s private sector gross national product, jobs and wages has surpassed all regional states in recent years. Over the past decade, Ohio has created more private sector jobs than any other state in the region, with a growth rate of nearly 14 percent between 2010 and 2019.

Site Selection ranked Ohio number one in the 2019 Governor’s Cup for economic and business attractiveness. The background is that Ohio has the highest number of new corporate facility projects per capita nationally. Ohio ranked second for total projects, making it the only state to place in the top three in both categories.

Ohio’s strong foundation appeals to business decision makers. Investing in talent development initiatives and in industries will continue to diversify Ohio’s economy.

FDIS: HISTORICALLY IMPORTANT

For over 40 years, businesses from around the world have chosen Ohio as their home. International companies are a welcome and valued part of the state’s economy. According to Site Selection Magazine (2020), Buckeye State ranks 4th in the US for foreign direct investment projects.

Foreign direct investment (FDI) comes from companies in Europe and Asia, each accounting for 40 percent. The remaining 20 percent falls on Canada and other international markets. JobsOhio alone, the state’s private, not-for-profit business development agency, has completed 430 international business projects since 2013. The investment volume was ten billion dollars and almost 30,000 jobs were created. Companies from Germany are the third largest employer after Japanese and British.

With global investments from 51 countries and 4,300 international offices that continue to strengthen Ohio’s economy, the state has created a culture of collaborating with international companies. He is trying to ensure these are successful and growing in the US market. The state convinces with tailor-made services and incentives.

  • COUNTRYAAH: offers list of all counties in the state of Ohio. Also includes cities and towns within each county.

OHIO INCOME TAX

Ohio charges an income tax of 2.85 – 4.797% depending on income. In addition, federal income taxes are payable.

OHIO CORPORATE INCOME TAX

Ohio does not collect a corporate tax. However, corporation tax has to be paid in the federal government.

OHIO SALES TAX

There is no sales tax or Value Added Tax (VAT) in the USA based on the European model. Instead, in the United States, states, counties, and municipalities levy a local sales tax on the sale of products (but not services).

Sales Tax Rate in Ohio

The sales tax in Ohio is 5.75% at the state level. Municipalities or districts charge an average of 1.42% sales tax. Combined, an average of 7.17% is due.

Ohio Nexus Laws & Sales Tax

Learn more about the Economic Nexus Laws in the context of Sales Tax here.

Effective Date

August 1, 2019

Transactions included:

Gross proceeds from the sale of tangible personal property for storage, use, or consumption in the US state, or from the provision of services the benefit of which is realized in the state

Treatment of tax-exempt transactions:

Exempt Sales and Exempt Services are included in the threshold

Reason:

sales or transactions

Sales/Transactions Threshold:

$100,000 or 200 transactions

Evaluation period:

The threshold applies to the current or previous calendar year

Extra information:

  • The new law repeals the previous Cookie Nexus law, which only applied to software or network providers.
  • Registration Requirements: Ohio requires remote businesses to register and begin collecting Ohio sales tax the day after crossing the Economic Nexus Threshold. See Out-of-State Sellers formore information.
  • HB166

Ohio Marketplace Sellers & Sales Tax

Learn more about Marketplace seller registration requirements

Effective date by the marketplace broker:

  1. Sept 2019

Economic Nexus Threshold:

Gross sales greater than $100,000 or 200 transactions in Ohio in the current or prior calendar year. Marketplace Facilitators include all sales made through the Marketplace (direct and third-party) when calculating the threshold. Marketplace sellers also include direct and marketplace sales in the threshold.

Registration requirements:

  • Remote Multichannel Sellers: You must register with the Ohio Department of Taxation and collect Ohio sales tax on sales not taxed by a Marketplace Agent once you have crossed the Economic Nexus Threshold.
  • Remote Marketplace Sellers: You do not need to register if you only sell through one or more bulk marketplaces, even if you cross the economic nexus threshold.
  • In-State Multichannel Sellers: You must register with the Ohio Department of Taxation and collect tax on sales that are not taxed by a marketplace intermediary.
  • In-State Marketplace Vendors: You may need to register; Contact the Ohio Department of Taxation for more information.
  • The Marketplace Facilitator: A marketplace facilitator should have a seller tax account for its own sales to Ohio consumers and a separate seller tax account for third-party sales.