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Ohio Business

Ohio CAT Threshold Now $6 Million for 2025–2026 Tax Years

Ohio's Commercial Activity Tax (CAT) is the state's gross-receipts tax on business activity. Reforms effective for tax years beginning January 1, 2025 raised the registration threshold to $6 million in annual gross receipts—meaning the majority of new Columbus LLCs and small carriers owe no CAT at all.

Who owes CAT in 2026

If your Ohio business has $6 million or less in taxable gross receipts for the calendar year, you generally owe no CAT and need not register. Above $6 million, you must register with the Ohio Department of Taxation and file quarterly returns at the statutory rate on receipts over the threshold.

This is separate from municipal income tax, payroll tax, and federal obligations—founders often confuse CAT with the old corporate franchise tax Ohio repealed in 2010.

What new LLC founders should track

Trucking companies can cross $6 million faster than retail shops because gross revenue counts before expenses. Monitor rolling twelve-month receipts if you are scaling lanes or adding power units mid-year.

Pair CAT planning with proper Ohio LLC formation budgeting and an EIN for banking separation.

Annual report reminder

CAT exemption does not remove your Ohio Secretary of State annual report obligation. Keep statutory agent information current even when you owe no state receipts tax.

Source

This update summarizes information published by Ohio Department of Taxation. Government rules, dates, and figures change—always confirm the current details on the official page.

Read the official Ohio Department of Taxation page →

Questions about compliance?

Talk to our Columbus team

We help owner-operators and new LLCs stay compliant. Walk in at Morse Road or call (380) 269-7408.

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Asal Business Solutions is a document preparation and compliance filing service. We are not attorneys. This news summary is for informational purposes—confirm current rules on official government sites before acting.