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Tax Information
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Sales Taxes
State Sales Tax: 5.5% (food, newspapers, magazine subscriptions, telephone service and prescription drugs exempt); Counties levy additional sales taxes which may add up to 2.0% in additional sales tax. Click here for details.
Gasoline Tax: 28 cents/gallon
Diesel Fuel Tax: 28 cents/gallon
Cigarette Tax: $1.25/pack of 20
Personal Income Taxes
Tax Rate Range: Low - 0.587%; High - 5.925% (Tax rates will drop 4.2% each year through 2009)
Income Brackets: Lowest - $5,000; Highest - $200,000; Several cities levy municipal income taxes.
Number of Brackets: 9
Personal Exemptions: * Single - $1,500; Married - $3,000; Dependents - $1,500
Standard Deduction: None
Medical/Dental Deduction: Unreimbursed medical/dental expenses, premiums for long-term care insurance, and unsubsidized health insurance premiums are deductible.
Federal Income Tax Deduction: None
Retirement Income Taxes: Social Security is exempt. Credit of up to $200 if retirement income is at least $500, plus a one-time credit on lump sums. Seniors 65 and over may claim a $50 credit. Only one credit is allowed for each return. Out-of-state government pensions can be applied toward the retirement income credit.
Retired Military Pay: For taxable year 2007 and prior years, Ohio residents must pay Ohio income tax on their military retirement income. However, these taxpayers are eligible for a retirement income credit of up to $200, based on the amount of retirement income received during the taxable year. Income which a spouse receives from a military survivor benefit plan is also treated as retirement income and is also eligible for the credit of up to $200. For the 2008 tax year, military retired pay of taxpayers who retired from service in the active or reserve components of the U.S. Army, Navy, Air Force, Marine Corps, Coast Guard, or from the National Guard, and SBP benefits, are exempt from state income tax and school district income tax.
Military Disability Retired Pay: Retirees who entered the military before Sept. 24, 1975, and members receiving disability retirements based on combat injuries or who could receive disability payments from the VA are covered by laws giving disability broad exemption from federal income tax. Most military retired pay based on service-related disabilities also is free from federal income tax, but there is no guarantee of total protection.
VA Disability Dependency and Indemnity Compensation: VA benefits are not taxable because they generally are for disabilities and are not subject to federal or state taxes.
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.
Property Taxes
The taxable base is the assessed value of land and buildings. Assessed value is 35% of market value, except for certain agricultural land. County auditors must reappraise all real estate every six years. The latest data available from the state (TY2006) shows the average statewide gross tax rate was 85.24 mills. A homestead exemption is available to the homesteads of qualified homeowners who are either at least 65 years old, permanently and totally disabled, or at least 59 years of age and the surviving spouse of a deceased taxpayer who had previously received the exemption. Before the 2007 tax year, eligibility was limited to taxpayers who earned $26,2000 or less, with benefits tiered according to income. Starting with the 2007 tax year (bills payable in 2008) income tests and tiered benefits no longer apply. Instead each qualified homeowner is eligible for a credit worth the taxes that would have been charged on up to $25,000 in true value ($8,750 in taxable value). In other words, starting with the 2007 tax year, an eligible homestead worth $100,000 would essentially be taxed as if it was worth $75,000. For more details, click here.
Inheritance and Estate Taxes
Ohio has no inheritance tax but an estate tax is levied against the value of a resident decedent's gross estate less deductions and exemptions. If the net taxable estate is over $338,333 but not over $500,000, the tax is $13,900 plus 6% of the excess over $338,333. If the net taxable estate is over $500,000, the tax is $23,600 plus 7% of the excess over $500,000. The estates of armed forces members who died while serving in a combat zone are exempt from probate fees. Call 800-977-7711 for details.
For further information, visit the Ohio Department of Taxation site.
* Add an additional $20 per exemption tax credit.
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Medina County Auditor
144 North Broadway
Medina OH 44256
Phone: 330-725-9767
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