How Much Ohio Taxes Its Residents Compared To Other States

2023-04-21

Because the sayings go, taxes are one of many few certainties in life, and the annual ritual of filling them with the IRS shouldn’t be one which many individuals sit up for. The common American paid $10,845 in federal earnings taxes alone in 2020. However, whereas everyone seems to be topic to the identical federal tax legal guidelines, states even have the authority to set their very own tax coverage, and precisely how a lot you find yourself paying relies upon largely on the place you reside.

To lift income, state governments levy a broad vary of taxes. These sometimes embrace taxes on property, earnings, and gross sales, they usually range significantly by state. In truth, in some components of the nation, residents are exempt from paying a number of of those tax classes altogether.

In response to the Tax Basis, an unbiased, nonprofit, tax coverage analysis group, state tax collections in 2021 totaled $2,963 per capita in Ohio, the 14th lowest amongst states.

The general tax burden in Ohio, which is a measure of taxes paid as a share of annual earnings, was 5.2% of the state’s earnings per capita of $56,879. For comparability, the per capita state earnings tax burden nationwide stands at 6.0%.

All knowledge on this story is from the Tax Basis report Info & Figures 2023: How Does Your State Evaluate from the Tax Basis, an unbiased, nonprofit, tax coverage analysis group. Figures don’t embrace taxes levied on the native or federal stage.