State Taxes

Gross Receipts Tax  (Commercial Activity Tax) – Sales outside of Ohio are exempt. The Commercial Activities Tax (CAT) is 0.26% on sales over $1 million within the State of Ohio. There is no CAT Tax on sales of $150,000 or less in a year. Annual Gross receipts from $150,001-$1,000,000 pay only $150. There is no other Corporate Income Tax .

Personal Income Tax - Nine bracket system with a bottom bracket of .0587% for income under $5,000 and a top bracket of 5.925% for income over $250,000. This reflects a 21% reduction through 2009.

Sales and Use Tax - 5.50% on taxable purchases.  This tax applies to the retail sale, lease, and rental of tangible personal property, as well as the sale of selected services. Manufacturing equipment  and Warehouse Machinery and Equipment are exempt from sales tax.

Unemployment Insurance - Employers must make contributions on the first $9,000 of each covered employee's wages. The contribution rate is 2.7%.

Local Taxes

Troy and Miami County have some of the lowest local tax rates in the U.S. This helps our local businesses reduce their operating costs and increase profitability.

Sales and Use Tax - 6.75% (5.5% state and 1.25% county).  Manufacturing Machinery is exempt.

Income Tax - 1.75% for City of Troy and 1.5% for school district) This tax is essentially an "earnings tax" and is levied on salaries, wages, commissions, and other compensation, and on net profits.

Real Estate Tax – Real property, or real estate, which includes land and improvements to land (buildings, etc.) is subject to property tax in Ohio. The taxable value of real estate is 35 percent of market value. The effective tax rate applied to the assessed value varies by school district. The average effective tax rate for real property in 2006 in Ohio was 63 mills. The real property tax rate in Miami County depends on location.

Personal Property Tax - Dependent upon location. In Ohio, the personal property tax has been eliminated on machinery, equipment and inventory. For investments made before this tax was phased out, the “assessed value” was calculated at 25% of the fair market value.  This tax goes to the city, county, other local government entities and the school districts.