Get 15107u Contents Important Changes

Key Highlights of the CAT Changes Increased Exclusion Amount: For calendar year 2024, the exclusion amount is increased from $1 million to $3 million. Furthermore, for calendar year 2025 and thereafter, the exclusion amount is increased to $6 million.

Ohio's Budget Bill (H.B. 33) significantly changed corporate activity tax (“CAT”) by increasing the annual exclusion beginning with the 2024 tax year. H.B. 33 eliminated the CAT's alternative minimum tax and increased the annual exclusion from $1 million to $3 million for 2024 and $6 million for 2025.

Ohio's Budget Bill (H.B. 33) significantly changed corporate activity tax (“CAT”) by increasing the annual exclusion beginning with the 2024 tax year. H.B. 33 eliminated the CAT's alternative minimum tax and increased the annual exclusion from $1 million to $3 million for 2024 and $6 million for 2025.

After an inflation adjustment, the 2023 standard deduction increases to $13,850 for single filers and married couples filing separately and to $20,800 for single heads of household, who are generally unmarried with one or more dependents.

CAT Changes Effective January 1, 2024 The annual exclusion amount is increased to $3 million. 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.

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. Business income will still be taxed at 3.00% for amounts over $125,000 filing single or $250,000 filing jointly.

The biggest changes include: Elimination of the $150 minimum tax: Starting in 2024, the $150 minimum tax in Ohio will be eliminated. Exemption for Small Businesses in 2024: Businesses with less than $3 million in Ohio sales will be exempt from filing and paying the CAT starting in 2024.

For 2024, the standard tax deduction for single filers has been raised to $14,600, a $750 increase from 2023. For those married and filing jointly, the standard deduction has been raised to $29,200, up $1,500 from the previous year.