Taxation…how does Ohio measure up?

Thanks to for this article on State Taxes… sure to read the last couple of paragraphs ….

Analysis: Ohio has 12th highest tax burden in country

• By Tyler Arnold |

Ohioans have the 12th highest tax burden in the country, according to a new report from consumer website WalletHub.

“This is a measure of the proportion of total personal income that Ohio residents pay towards state and local taxes,” WalletHub analyst Jill Gonzalez said in an email. “In Ohio, this share makes up 9.3% of a person’s income. Almost half of Ohioans’ tax burden (4%) is represented by sales tax, while the rest is split almost evenly between property and income taxes.”

The rankings listed how much the average resident pays in taxes as a percentage of his or her personal income. Ohio ranked 12th, with residents paying an average of 9.31 percent of their income in local and state taxes.

The state ranked 25th in property tax burden at 2.8 percent, 19th in income tax with  2.54 percent and 15th in sales and excise tax with 3.97 percent.

Ohio ranked fourth highest out of the 12 Midwest states in overall tax burden with Minnesota being the highest in the region at 10.25 percent. Illinois ranked 9th with 9.67 percent and Iowa ranked 10th with 9.49 percent. Illinois did particularly poor in property tax burden, ranking 9th, and Minnesota did particularly bad in income tax burden, ranking 4th.

Republican states tended to have lower overall tax burdens than Democratic states. The average ranking for a red state was 30.13 and the average ranking for a blue state was 18.4. The states with the top nine tax burdens all went for Hillary Clinton in the 2016 election.

Greg Lawson, a research fellow at the Ohio-based free-market Buckeye Institute, said in an email that there are areas in which Ohio can cut down on its tax burden. The Buckeye Institute released a report with the nonpartisan Tax Foundation detailing the tax burden of Ohioans.

“We need to keep reducing the state income tax so that it is less burdensome when combined with local income taxes that can be levied by municipalities and some school districts,” Lawson said. “It is this ‘pancaking’ effect that creates a higher total tax burden for Ohioans as opposed to only state taxes, which have improved since the mid 2000s.”

Ohio has made some improvements in recent years to alleviate tax burden. According to Lawson, the state’s income tax has dramatically dropped since the mid-2000s after reductions by Govs. Bob Taft and John Kasich. Although Gov. Mike DeWine hasn’t made tax reform a priority, Lawson said that Senate Republicans seem to be more willing to pursue those kinds of reforms. Republicans have a
majority in the state House and Senate.

“Local taxpayers, in particular, need to start getting engaged locally,” Lawson said. “Much of the tax burden resides locally, meaning that decisions made by local elected officials is critically important in deterring what a person’s tax burden looks like.

The Buckeye Institute has long argued for local governments to improve their ways of doing business so that further tax reform can be done. Local residents should start demanding these kind of reforms locally.” (emphases added by LFC)

Categories: Lake County, Real Estate Taxes, Uncategorized


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