WHAT IS OHIO C.A.T. TAX?
Ohio Commercial Activity Tax (CAT)
If you have not filed and paid your 2024 Q4 Ohio CAT Tax, today is the deadline.
Ohio's Commercial Activity Tax (CAT) is an annual tax (0.26%) imposed on the privilege of doing business in the state, measured by gross receipts from business activities in Ohio. Recent legislative changes have significantly altered the CAT's structure, affecting businesses' tax obligations.
Key Changes to the CAT:
Effective January 1, 2024, the annual minimum tax has been eliminated. Previously, businesses with taxable gross receipts exceeding $150,000 were subject to a minimum tax ranging from $150 to $2,600, depending on their gross receipts. This change reduces the tax burden on smaller businesses.
The exclusion amount—the threshold below which businesses are not subject to the CAT—has been increased:
2024: Businesses with taxable gross receipts of $3 million or less are not subject to the CAT.
2025 and beyond: The exclusion amount increases to $6 million.
Taxpayers expecting their taxable gross receipts to be $6 million or less for the 2025 tax year can cancel their CAT account right away by choosing the cancellation option on their final return (4th quarter 2024), which is due by today. Alternatively, you can log in to the Ohio Business Gateway and select the “CAT Cancel Account” option or submit a Business Account Update form to complete the cancellation.
As of 2024, all taxpayers are required to file quarterly returns, replacing the previous annual filing requirement. This change aims to streamline the tax process and ensure more consistent revenue collection.
Quarterly CAT Tax Due Dates:
Q4 2024: Due February 10, 2025
Q1 2025: Due May 10, 2025
Q2 2025: Due August 10, 2025
Q3 2025: Due November 10, 2025
Q4 2025: Due February 10, 2025
