As you likely already know, each state within the United States has some type of tax structure. Consumers are generally forced to pay taxes on the items they purchase and anytime they make money. Failing to do so could be deemed as tax evasion and could result in severe repercussions. Of course, it is essential to remember that the tax laws tend to deviate from one state to another. If you’re making a move to Ohio, you will want to familiarize yourself with Ohio taxation laws as quickly as possible. For your consideration, they will be explored in greater detail below.
The Ohio Estate Tax
Many states have an estate tax. This type of tax is generally imposed on estates of those that have passed away. If you become an executor for a deceased individual, you will receive their money and assets, but you will be responsible for paying taxes on that money. However, it should be known that the state of Ohio actually repealed the estate tax. As of January the 1st of 2013, it is no longer enforced. However, it should be known that death occurring before that date are still taxable.
Ohio Sales Tax
It is also important to remember that the Ohio taxation laws also include a sale tax. This is tacked on to the mass majority of items purchased within the state, but there are a few exemptions. For instance, prescription medications and groceries are not taxes. The good news is that Ohio’s sales tax is substantially lower than many others. It was just recently raised from 5.5% to 5.75%. However, this is generally not the precise amount you will pay at the checkout. Remember that there may be local surtaxes for each jurisdiction. On average, most Ohioans will pay around 7.1% in taxes and surtaxes.
Ohio Income Taxes
And of course, Ohio charges taxes on all incomes. If you make money within the state, you will be required to pay a tax on that money. However, it should be noted that there is no flat tax. Instead, the tax increases as your income increased. For instance, single individuals, who make $208,500 or more dollars will be required to pay a 5.33% income tax. However, if you make just $15,650 a year, you will only be required to pay a 2.64% income tax. You should also remember that it is possible to claim a variety of deductions and this will help you decrease the amount you are forced to pay into the state.
Should you find yourself in need of a state or federal tax attorney in Ohio we suggest visiting https://deanhineslawyer.com/tax-attorney-dayton-ohio/ – Tax Attorney Dayton Ohio. If you have any questions please let us know in the comments below or feel free to contact Dean Hines at the link above for a free initial consultation.
Article Written By: https://www.Federal-Tax-Extension.com – Federal Tax Extensions