(The Center Square) – With countless phones unwrapped this Christmas season, Ohioans pay some of the lowest taxes in the nation.
A new report from the Tax Foundation shows the $100 per month paid nearly $294 per year in taxes, fees and government surcharges.
Ohio had the 10th lowest combined state, local and federal wireless tax rate in the country at 19.41%. The federal tax rate is 10.83%, while Ohio’s state and local tax rate is 8.58%.
It also had the third-lowest difference between state and local sales tax rates and a wireless tax rate of 1.11%
The report says 78% of low-income adults and 72% of all adults lived in wireless-only households, and it calls wireless taxes regressive that create significant burdens on low-income families.
Since 2012, the average charge from wireless providers decreased by 26%, from $47.00 per line per month to $34.56 per line, according to the report. However, wireless taxes, fees, and government surcharges increased from 17.2% to 24.5% of the average bill during this same time.
Illinois is No. 1 in the nation for cell phone taxes by state. At 33.8%, followed by Arkansas at 32.2%, and Washington is third at 32.1%.
Texas had the most significant increase of any state in 2023 – from 24.1 to 28.3% – due to a substantial increase in the state Universal Service Fund charge rate.
