(The Center Square) – Local income taxes continue to burden Ohioans and leave the state ranked well below average in a recently released competitive tax report.
The Tax Foundation scored the states and the District of Columbia for five different subcategories representing a major component of state tax codes that include corporate taxes, individual income taxes, sales, use, and excise taxes, property and wealth taxes and unemployment insurance taxes.
Ohio ranked 35th overall for tax competitiveness.
A cut from 3.75% to 3.5% in Ohio’s top individual tax rate helped the state jump from 28th to 25th in the individual income tax category, and the report called the state-level income tax rate now highly competitive.
It also fared well in property taxes, ranking sixth, and 14th in unemployment insurance taxes. But a ranking of 45th in corporate taxes and 43rd in sales taxes pushed Ohio into the bottom half of the overall rankings.
The report by the nonpartisan, nonprofit group gave high marks to states with no personal income tax.
The 10 best states were Wyoming, South Dakota, Alaska, Florida, Montana, New Hampshire, Texas, Tennessee, North Dakota and Indiana. The 10 worst were New York, New Jersey, California, Connecticut, Maryland, Washington, Minnesota, Vermont, Hawaii and Massachusetts.
