Fostering Growth, Job Creation and Profitability
Ohio’s economy is strong and highly diversified, ranking as the 7th largest economy in the U.S. and the 21st largest globally. The state has been experiencing strong growth, driven in large part by the state’s $2 billion budget reserve, strong credit rating and pro-business tax structure.
Several economic indicators reinforce the health of Ohio’s economy. Between 2011 and 2016, private employment in Ohio increased by 450,000 jobs, far outperforming the regional average of 261,000 jobs. In January 2017, the Federal Reserve Bank of Cleveland reported stable production at manufacturing plants, an improving housing market and healthy increases in upstream shale gas activity. Moreover, Ohio’s business-friendly tax climate continues to stimulate company growth, job creation and profitability with the following advantages:
Pro-business Tax Climate
- No corporate profits or income tax
- No tangible personal property tax
- No inventory tax
- No tax on products sold outside of Ohio
- No tax on machinery and equipment investments
- No tax on R&D investments
- No tax on first $1 million in taxable gross receipts
Single, Low-Rate Business Tax
- Ohio has only one state business tax – The Commercial Activity Tax (0.26%)
Ohio is among the top states for business climate, economic outlook, regulatory environment, small business tax climate and workforce quality.
- No. 4 in State Business Climate (Site Selection Magazine, 2017)
- No. 7 in Economic Climate (Forbes Magazine, 2017)
- No. 8 in Small Business Tax Climate
- No. 11 in Best States for Business (Chief Executive, 2017)
Contact us today to learn how Ohio’s business climate can benefit your organization.
Ohio’s tax climate is extremely favorable to businesses, especially smaller businesses and it is better to do what will have proven positive results rather than make assumptions. The success of businesses in Ohio is evidence that Ohio's tax system is working.