Ohio Tax Information

Property Taxes

In Ohio, property tax rates vary greatly between political subdivisions. In most cases 60-65 percent of property tax revenues go towards support of local school systems. Taxes on residential real estate in Montgomery County are based on 35 percent of the market value—a somewhat arbitrary value that usually lags behind the true market value. There is also a homestead exemption on owner-occupied dwellings for those over 65, disabled, or beneath a certain income level.

Sales Tax

Ohio sales tax is 6 percent, excluding food products, but not soft drinks. However, Montgomery County added 1.0 percent making total sales tax in the Miami Valley 7.0 percent.

Income Tax

Ohio taxes all individual income across several tax brackets at graduated tax rates:

• 0.587% for the first $5,200 of taxable income
• $30.52 + 1.174% for incomes between $5,200 and $10,400
• $91.57 + 2.348% for incomes between $10,400 and $15,650
• $214.84 + 2.935% for incomes between $15,650 and $20,900
• $68.93 + 3.521% for incomes between $20,900 and $41,700
• $1,101 + 4.109% for incomes between 41,700 and $83,350
• $2,812.70 + 4.695% for incomes between $83,350 and $104,250
• $3,793.96 + 5.451% for incomes between $104,250 and $208,500
• $9,476.63 + 5.925% for income above $208,500

The tax brackets amounts are adjusted annually for inflation. This tax rate structure is designed to tax higher rates only to that portion of the individual's income that exceeds a threshold income. For example, the graduated tax rate means that earned income at or below $5,050 would be taxed at a rate of 0.587% whereas any income over $5,050 would be taxed at higher rates.

If a single person earned $12,000, he or she would be taxed at 0.587% on the first $5,050, 1.174% on the next $5,050, and 2.348% on the final $1,900 for a total tax of $133.54. (5050*0.00587 + 5050*0.01174 + 1900*0.02348) You may claim a $1,200 exemption for yourself, your spouse, and each dependent.

Personal Property Tax

In Ohio, real estate and other personal property is taxed locally.