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Ohio Commercial Activity Tax (CAT)

Ohio enacted a tax on business conducted in Ohio effective July 1, 2005.  This tax was phased in over a five-year period.  During that same time period, personal property tax and corporate franchise tax were phased out.  In addition, Ohio individual income tax rates were reduced by 21% over the five-year period.


The CAT tax is a business privilege tax, measured on gross receipts from activities in Ohio.  The tax applies to sales of goods and services and rental of property.


If your combined annual gross receipts are less than $150,000.00:

        You are exempt from registration.

        Exempt from reporting this tax.


If your combined annual gross receipts are $150,000.00 to $1,000,000.00:

        You will be required to file annually.

        Annual returns filed after January 1, 2014 must be filed and paid online through the Ohio Business Gateway.

        Your annual tax will be $150.00.


If your combined annual gross receipts exceed $1,000,000.00 but less than or equal to $2,000,000.00:

        You will be required to file quarterly.

        Your quarterly return must be filed and paid online through the Ohio Business Gateway.

        Your tax will be $800.00 on the first $1,000,000.00 plus 0.26 percent of the excess.


If your combined annual gross receipts exceed $2,000,000.00 but less than or equal to $4,000,000.00:

        You will be required to file quarterly.

        Your quarterly return must be filed and paid online through the Ohio Business Gateway.

        Your tax will be $2,100.00 on the first $1,000,000.00 plus 0.26 percent of the excess.


If your combined annual gross receipts exceed $4,000,000.00:

        You will be required to file quarterly.

        Your quarterly return must be filed and paid online through the Ohio Business Gateway.

        Your tax will be $2,600.00 on the first $1,000,000.00 plus 0.26 percent of the excess.


Taxpayers can register by mail or online through the Ohio Business Gateway.


Click here to search the Department of Taxation's website for registered CAT taxpayers.


Failure to register and report this tax may result in penalties.


Taxpayers who have registered for the CAT that subsequently determine they are no longer subject to the tax must cancel their registration.  For tax years 2007 and thereafter, such cancellation must be made by February 10 of that calendar year in order to avoid being subject to the $150.00 minimum tax.


Additional information can be found on the Ohio Department of Taxation's Commercial Activity Tax (CAT) webpage.


If you have additional questions, please feel free to contact us.


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