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Tax Advantages

Reduce your operating costs with the lowest taxes in the Midwest.

Making a commitment to eliminate a burdensome tax system, Ohio in 2005 implemented full-scale, sweeping tax reform. Ohio's new business taxation model will mean a reduction in tax burden of up to 63% by 2010, the first year reform is fully implemented.

Ohio's new tax system means businesses can:

  • Reduce operating costs - No tax on inventory or corporate income
  • Enhance productivity - No tax on investments in machinery and equipment
  • Attract talent - Shrink labor costs through a 21% reduction in personal income tax
  • Enjoy a level playing field - All companies taxed the same low rate
  • Boost return on investment - No tax on product sold to customers outside Ohio
  • Reward entrepreneurship - First $1 million in gross receipts are tax free

With these reforms, Ohio and communities like Wapakoneta will become even more competitive. Ohio's favorable business climate and high quality of living, combined with low business and personal costs, make us an increasingly viable location for business growth.

Learn more about Ohio's tax reforms

Ohio is one of the top five states ranked with the lowest effective tax rate on new investment

An Ernst & Young analysis of key manufacturing and service industries in these Midwestern states -- Illinois, Indiana, Michigan, Minnesota, and Wisconsin -- found that:

  • Ohio's effective tax rate on new capital investment by manufacturing industries will be 40% lower than the five-state average.
  • Ohio's effective tax rate on selected service industries will be 29% lower than the five-state average.
  • For all industries studied, Ohio's effective state and local tax rate is 37% lower than the five-state average.

State Tax Rates

Ohio's tax on new investment is the lowest in the Midwest.

STATE TAXES

Corporate Income Tax - None

Corporate Franchise Tax - None

Gross Receipts Tax - The Commercial Activities Tax (CAT) is 0.26% on sales within the State of Ohio. Sales outside of Ohio are exempt. The first $1 million in eligible sales are exempt from the CAT.  

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

Sales and Use Tax on Production Machinery & Equipment - Exempt

Learn more about Ohio's tax rates

Local Taxes

Wapakoneta and Auglaize County, Ohio have some of the lowest tax rates in the U.S. They help our local businesses reduce their operating cost and increase profitability.

Total tax rates for business operations in the City of Wapakoneta, Ohio

Sales and Use Tax - 7.0% (state and county)
Income Tax - 1.75% (city and school district)
Real Estate Tax - $39.44 per $1000 of tax value with 35% assessment (city, county, school & township)
Personal Property Tax - None

Auglaize County Taxes

Sales and Use Tax - 1.5% on taxable purchases

Personal Income Tax - None

Real Estate Tax - $10.23 per $1000 of tax value with assessment at 35%

Personal Property Tax - None

Learn more about Auglaize County taxes

City of Wapakoneta Taxes

Sales and Use Tax - None

Personal Income Tax - 1.0% for residents and individuals working in Wapakoneta

Real Estate Tax - $3.25 per $1000 of tax value with assessment at 35%

Personal Property Tax - None

Learn more about the City of Wapakoneta's tax rates

Wapakoneta City School District Taxes

Personal Income Tax - 0.75%, applies to school district residents only

Real Estate Tax - $25.39 per $1000 of tax value with assessment at 35%

Personal Property Tax - None

Township Tax Rates

Personal Income Tax - None

Real Estate Tax - $0.70 per $1000 of tax value with assessment at 35%

Personal Property Tax - None