March 31, 2010 – New Data: Ohio’s State Tax
Burden Lower than Most States
COLUMBUS, Ohio – New statistics from
the U.S. Census Bureau show that the burden of state
taxes is lower in Ohio than most other states,
including all of Ohio’s neighbors.
That’s the conclusion of an analysis of census data by
the Federation of Tax Administrators (FTA), the
association of the nation’s state tax departments.
According to the FTA analysis of census data released
last week, Ohio’s state tax burden during fiscal year
- 35th highest on a per capita basis. In other words,
only 15 other states collected less in taxes per person
than Ohio did last year.
- 33rd highest when measured as a percentage of
Ohioans’ personal income. By this measure, only 17
other states collected a lower percentage of taxes than
“These new figures bear out what we’ve been saying:
Ohio is not a high tax state, certainly not where state
taxes are concerned,” Ohio Tax Commissioner Richard A.
Levin said. “That’s what these new census figures
In 2005, the state tax burden in Ohio was closer to the
middle of the pack: 27th highest per capita and 28th
highest when measured as a percentage of personal
income, according to the FTA.
Ohio’s improved national ranking seems to reflect the
impact of a package of tax reductions and reforms
enacted in 2005 and gradually phased in during the past
five years, Levin said.
The tax cuts include a 17 percent reduction in income
tax rates and the elimination of two major business
taxes on corporation profits and business property. The
overall net savings to taxpayers: About $2.1 billion
this fiscal year alone.
“By phasing out complex and antiquated business taxes,
state leaders have eliminated barriers to investment
and given businesses a new reason to consider creating
jobs in Ohio,” Levin said. “And these changes have
certainly lowered the tax burden. This package of tax
reductions was the largest in Ohio in at least 70
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Note: Media with questions should
contact John Kohlstrand at (614) 644-3858. Taxpayers
with questions should call either (800) 282-1780 for
individual tax issues or (888) 405-4039 for business
A PDF version of this news release, including a table
comparing Ohio’s fiscal year 2009 tax burden to its
neighbors, is available at:
A more detailed table comparing the tax burdens in all
50 states during fiscal year 2009 – measured either on
a per capita basis or as a percentage of personal
income – is available from the Federation of Tax
A fact sheet that summarizes Ohio’s five-year tax
reform effort is available at: