Commercial Activity Tax

Commercial Activity Tax

The commercial activity tax (CAT) is an annual tax imposed on the privilege of doing business in Ohio, measured by gross receipts from business activities in Ohio. Businesses with Ohio taxable gross receipts of $150,000 or more per calendar year must register for the CAT, file all the applicable returns, and make all corresponding payments. Here are the benefits you will reap as a business from the Commercial Activity Tax:

Ohio won’t tax your profits.

We’ve eliminated corporate profit and franchise taxes. Zero tax on corporate profit means reduced operating costs and enhanced profit margins for your business.

No taxes on new machinery and equipment.

We want your profits to soar, so when you invest in greater productivity, your business will have zero tax liability surrounding that investment.

Zero tax burdens on inventory.

Operating costs can drop significantly as a result of Ohio’s inventory tax policy. If your business holds inventory in Ohio, it’s completely tax-free.

Don’t pay tax on out-of-state sales.

Ohio doesn’t impose a tax on goods or services sold outside of our state. If you ship 100% of your product outside of Ohio, your Commercial Activities Tax (CAT) is zero.

Start a business, get huge benefits.

Entrepreneurs will love this: Your first $1 million in gross receipts can be tax-free in Ohio.

Our flat tax is easier.

Flat tax paid if your sales are between $150,000 and $1 million.