For example, if your Ohio small business sells a product to a customer in California, the proceeds of that sale are not subject to the tax. If you sell the same product to a business in Ohio, that revenue is subject to Ohio’s CAT.
Does every Ohio business pay CAT?
In short, the answer is no. There are a few businesses that are exempt from the CAT, including:
Businesses that are subject to Ohio’s CAT
If your business does not fit into one of the categories above, and gross sales are over $150,000 during the calendar year, it is subject to the tax. Included industries are:
Types of businesses subject to the CAT
The Nitty Gritty
How to Calculate CAT:
Taxable Gross Receipts | Annual Minimum Tax | CAT |
$1 million or less | $150 | No additional tax |
More than $1 million but less than or equal to $2 million | $800 (paid quarterly) | .26% x (taxable gross receipts - $1 million) |
More than $2 million but less than or equal to $4 million | $2,100 | .26% x (taxable gross receipts - $1 million) |
More than $4 million | $2,600 | .26% x (taxable gross receipts - $1 million) |
When Is My CAT Due?
Annual Filers – Less than $1 million in annual sales
Filing Period | Filing Due Date |
Jan. 1 - Dec. 31 | May 10 |
Quarterly Filers – More than $1 million in annual sales
Filing Period | Filing Due Date |
Jan. 1 - March 31 | May 10 |
April 1 - June 30 | Aug. 10 |
July 1 - Sept. 30 | Nov. 10 |
Oct. 1 - Dec. 31 | Feb. 10 |
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