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The new law also eliminates the annual CAT filing and requires CAT returns to be filed on a quarterly basis. In addition, the CAT minimum annual tax is eliminated starting in 2024. This change effectively eliminates the CAT for taxpayers under the gross receipts threshold.
Business tax changes Last year, businesses could deduct 80% of the cost of new and used qualifying business assets with lives of 20 years or less. This year, the 80% write-off decreases to 60%. But Section 179 expensing is higher. $1,220,000 of assets can be expensed in 2024.
Taxpayers can exclude $3 million in gross receipts from the Ohio CAT. Prior to this change, taxpayers could exclude $1 million. The increased exclusion represents $5,200 in tax savings for taxpayers subject to the CAT in 2024. Taxpayers with $3 million or less gross receipts are no longer subject to the Ohio CAT.
The CAT rate of 0.26% remains unchanged and continues to apply to those taxpayers with Ohio sourced taxable gross receipts over $3 million in 2024 and over $6 million in 2025 (and thereafter).
Taxpayers with taxable gross receipts of $3 million or less per calendar year will no longer be subject to the CAT. The 2023 annual return due May 10, 2024, is the final return required for annual filers.
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ingly, all taxpayers must submit Ohio CAT filings on a quarterly basis going forward. Furthermore, annual exclusion amounts increase over a two-year period from $1 million to $3 million for the 2024 tax year and $6 million for the 2025 tax year.
Effective January 1, 2024, the Commercial Activity Tax (CAT) underwent major changes. 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.
Personal Income Tax Once fully phased in for 2024, there will be two tax brackets and the highest rate will be 3.50%. Taxpayers earning $26,050 or less will be exempt from paying any Ohio income taxes.

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