Changes to the Ohio Commercial Activity Tax (CAT) 2026

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  1. Click ‘Get Form’ to open it in the editor.
  2. Begin by entering your CAT account number and FEIN/SSN at the top of the form. This information is crucial for identifying your reporting entity.
  3. Fill in the reporting member’s name, street address, city, state, and ZIP code. Ensure all details are accurate to avoid processing delays.
  4. Indicate the period covered by entering the start and end dates in MM/DD/YY format. This specifies the quarter for which you are submitting this report.
  5. Review the credits section carefully. For each credit being claimed, provide details such as whether it is refundable or nonrefundable, along with relevant Ohio Revised Code sections.
  6. Complete the declaration and signature section at the bottom of the form. An authorized officer must sign and date this declaration to validate your submission.

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New Important Changes to the Ohio Commercial Activity Tax For tax periods beginning on and after January 1, 2024, the CAT annual minimum tax is eliminated, and the exclusion amount is increased from $1 million to $3 million. For calendar year 2025 and thereafter, the exclusion amount is increased to $6 million.
Individual income tax In tax year 2026: Reduces the top bracket to the flat 2.75%, applied to all income over $26,050. As noted above, the tax rate reduction only applies to nonbusiness income, which includes most W-2 income. The business income tax rate continues to be 3.0%.
In 2025, the exclusion amount for taxable gross receipts will further increase to $6 million. Consequently, businesses with taxable gross receipts below $6 million will not be required to register for or pay the CAT. The CAT rate of 0.26% will remain applicable to taxable gross receipts over $6 million.
The July 2025 tax changes included in the One Big Beautiful Bill Act extended many provisions of the 2017 Tax Cuts and Jobs Act (TCJA). TCJA extensions include an increased standard deduction, lower tax brackets and a higher lifetime estate tax exemption amount.
Minimum Gross Receipts Change The minimum gross receipts that require an owner to register has changed to $6 million starting in 2025. The minimum total of gross receipts that require an owner to register is $6 million stating in 2025up from $3 million in 2024 and $150,000 in 2023.

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The CAT rate remained unchanged at 0.26% of taxable gross receipts more than $3 million. In 2025, the exclusion amount for taxable gross receipts will further increase to $6 million. Consequently, businesses with taxable gross receipts below $6 million will not be required to register for or pay the CAT.
The state approved the transition from a graduated bracket system to a flat tax rate of 2.75%, effective for tax years beginning in 2026. Additionally, the top marginal rate for tax year 2025 has been retroactively reduced from 3.5% to 3.125%, applicable to income earned on or after Jan. 1, 2025.

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