Ohio Tax Rate 2021: What You Need to Know

Many Ohio citizens are curious about the tax rates for 2021 as tax season draws near. The good news is that Ohio will maintain its current income tax rates through 2020. The highest marginal tax rate in the state will stay at 4.797%, and the lowest rate will stay at 0.495%. It is crucial to remember that local tax rates can differ based on where you live.

The sales tax is one of the most important municipal taxes that Ohio citizens need to be aware of. Local counties and municipalities may tack on their own sales taxes on top of the state’s 5.75% flat rate. The current Franklin County, Ohio sales tax rate is 7.5%. This implies that a $100 item will cost you an additional $7.50 in sales tax.

How then do you calculate sales tax? The math is not too difficult. You must first ascertain the local sales tax rate. Usually, you can obtain this information on the website of your state or municipal government. Once you are aware of the rate, you can calculate the sales tax amount by multiplying it by the cost of the item.

Despite the fact that Ohio’s sales tax may seem high, several other states have rates that are significantly higher. For instance, with a state sales tax of 7.25%, California has the highest state sales tax in the nation. In some places, the rate might reach 10.25% when municipal sales taxes are included.

You might be curious in the local sales tax rate if you reside in Summit County, Ohio. Summit County’s current sales tax rate is 6.75%. This is greater than the state average but slightly lower than the sales tax rate in Franklin County. Therefore, Ohio’s tax rates for 2021 won’t change from those for 2020. Although local taxes, including sales tax rates, can differ based on where you live, it is crucial to be aware of them. You may better prepare for tax season and prevent any surprises when it’s time to file your taxes by being aware of local tax rates and how to compute sales tax.