Ohio Commercial Activity Tax (CAT) calculator for businesses. Computes 0.26% tax on gross receipts over $6M, quarterly filing, and bright-line nexus. Triggers on Ohio CAT, Ohio business tax, commercial activity tax, Ohio gross receipts.
Compute Ohio CAT liability for businesses with Ohio-sourced gross receipts. Handles the $6M exclusion threshold, 0.26% flat rate, quarterly filing, and bright-line nexus rules per Ohio Department of Taxation.
Ohio's Commercial Activity Tax (CAT) is a gross receipts tax — a privilege tax measured by gross receipts from business activity in Ohio. Unlike income taxes, the CAT does not allow deductions for expenses, costs of goods sold, or other business costs.
The CAT applies to all business entity types — sole proprietors, partnerships, LLCs, corporations, and S-corps. It is separate from Ohio's corporate franchise tax (which it replaced in 2005) and municipal income taxes. Financial institutions and insurance companies are generally exempt1.
As of 2025, the exclusion threshold increased to $6 million, meaning approximately 90% of Ohio businesses no longer owe the CAT2.
The CAT has a single flat rate with no tiers or classifications:
| Component | Amount | Source |
|---|---|---|
| Exclusion threshold | $6,000,000 (effective 2025) | Brady Ware — CAT Update |
| Tax rate | 0.26% on gross receipts over $6M | Brady Ware — CAT Update |
Formula:
CAT = 0.0026 × max(ohio_taxable_gross_receipts - $6,000,000, 0)
No base tax amount. No tiered rates. No classification-based rates. The Annual Minimum Tax (AMT) was eliminated as part of the 2024 threshold changes2.
| Year | Exclusion Threshold | Source |
|---|---|---|
| Through 2023 | $150,000 | RubinBrown — CAT Changes |
| 2024 | $3,000,000 | RubinBrown — CAT Changes |
| 2025+ | $6,000,000 | Brady Ware — CAT Update |
Ohio does not impose an additional surcharge on the CAT for high-grossing businesses.
| Entity Type | Source |
|---|---|
| Financial institutions (subject to separate financial institutions tax) | Ohio DOR — CAT |
| Insurance companies (subject to separate insurance premium tax) | Ohio DOR — CAT |
| Certain qualifying dealers in intangibles | Ohio DOR — CAT |
Individuals holding over 50% ownership in multiple businesses must combine gross receipts across all owned entities to determine whether the $6M threshold is met2. This prevents splitting a business into smaller entities to avoid the CAT.
Unlike Oregon's CAT, Ohio's CAT offers no subtraction for costs, expenses, or labor. The tax is computed on gross receipts without any deductions1.
Businesses with more than $6 million in Ohio taxable gross receipts must register for the CAT. Businesses at or below $6 million may cancel their CAT account2.
The CAT is filed quarterly for businesses above the threshold:
| Quarter | Period | Due Date | Source |
|---|---|---|---|
| Q1 | Jan 1 – Mar 31 | May 10 | Brady Ware — CAT Update |
| Q2 | Apr 1 – Jun 30 | August 10 | Brady Ware — CAT Update |
| Q3 | Jul 1 – Sep 30 | November 10 | Brady Ware — CAT Update |
| Q4 | Oct 1 – Dec 31 | February 10 | Brady Ware — CAT Update |
Due on the 10th day of the second month following the end of each calendar quarter.
Gross receipts are sourced ("sitused") to Ohio based on where the benefit of the service or product is received, not where the business is located. Ohio uses an ultimate destination rule for tangible goods and a benefit received rule for services3.
Ohio uses a bright-line economic nexus standard — the first state to adopt one (2005). A business has CAT nexus if any of the following apply during the calendar year4:
| Nexus Trigger | Threshold | Source |
|---|---|---|
| Ohio taxable gross receipts | $500,000 | ORC 5751.01 |
| Ohio property | $50,000 | ORC 5751.01 |
| Ohio payroll | $50,000 | ORC 5751.01 |
| 25% of total property, payroll, or receipts in Ohio | Any amount | ORC 5751.01 |
| Authorized to do business in Ohio | — | ORC 5751.01 |
| Owns or uses capital in Ohio | — | ORC 5751.01 |
Note: Having nexus does not mean you owe tax — you must also exceed the $6M gross receipts threshold. Many businesses have nexus but fall below the threshold4.
Ohio cities impose municipal income taxes on business net profits — these are net income taxes, not gross receipts taxes, and are separate from the CAT.
Major Ohio cities with business income taxes:
| City | Rate | Tax Type | Source |
|---|---|---|---|
| Columbus | 2.50% | Net profit | Columbus Income Tax |
| Cleveland | 2.50% | Net profit | CCA Tax Rates |
| Cincinnati | 1.80% | Net profit | Cincinnati Finance |
See references/city-taxes.md for full details on rates, filing requirements, and administration.
Sum all gross receipts sourced to Ohio using situsing rules (ultimate destination for goods, benefit received for services).
cat = 0.0026 × (ohio_gross_receipts - $6,000,000)
Divide annual estimated liability by 4 for quarterly payments.
If operating in an Ohio city with a municipal income tax, compute city net profit tax separately.
Annual Ohio taxable gross receipts: $15,000,000
Step 1: Ohio gross receipts = $15,000,000
Step 2: Over $6M → tax applies
Step 3: CAT = 0.0026 × ($15,000,000 - $6,000,000)
CAT = 0.0026 × $9,000,000
CAT = $23,400.00
Step 4: Quarterly payment = $23,400 / 4 = $5,850.00
Annual CAT liability: $23,400.00
When computing CAT, present results as:
## Ohio CAT — [Period]
| Item | Amount |
|---|---|
| Ohio Taxable Gross Receipts | $XX,XXX,XXX.XX |
| Exclusion Threshold | ($6,000,000.00) |
| Taxable Amount | $XX,XXX,XXX.XX |
| Rate | 0.26% |
| **Total CAT Due** | **$XX,XXX.XX** |
| Quarterly Payment | $X,XXX.XX |
| Due Date | [date] |
*Municipal income taxes (if applicable):*
| City | Rate | Net Profit | Tax Due |
|---|---|---|---|
| [City] | X.XX% | $XX,XXX | $X,XXX |
This provides general tax guidance based on publicly available information. It is not legal or tax advice. Consult a qualified tax professional for your specific situation.