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How much would an Ohio sales tax increase cost you?

how much is sales tax in ohio

CLEVELAND, Ohio - Most people probably have no idea how much they pay each year in sales taxes because the payments are made at the cash register one purchase at a time.

But should Gov. John Kasich's proposal to increase the sales tax by one-half a percentage point receive approval from the state legislature, the increase could average about $1 a week for many people.

There are a lot of moving parts, including an expansion on what would be taxed under the governor's proposal. And, ultimately, what any one person pays depends on how much they spend on taxable items.

But based on the current sales tax structure in Ohio, a typical single person making $55,000 a year can expect to pay another $51 over the course of the year in sales taxes, the Northeast Ohio Media Group found. A family of four with the same income would pay about $61 more.

These estimates were based on calculations using Internal Revenue Service tables, which take into account what currently is taxed in Ohio. The governor's plan would expand that base to include

cable TV, parking, travel packages and many other things. A $100 a month cable bill, for example, would cost another $75 a year because the expanded sales tax.

The governor is proposing that the state sales tax rate increase from 5.75 percent to 6.25 percent.

Counties also add to those rates. In Cuyahoga County, the total sales tax rate would increase from 8 percent to 8.5 percent if the plan is approved.

A topic that is sure to become part of the discussion is whether such a change would affect lower-income people more than higher-income people.

For example, according to the IRS tables for the current Ohio sales tax, a family of four with an income of $55,000 is estimated to pay about 1.3 percent of its annual earnings on the state sales tax, compared to 0.8 percent for a single person making $125,000 a year.

Here are estimates, based on the Internal Revenue Service tables using the current tax structure, of what Ohioans now pay for the 5.75 percent state share of the sales tax and how that would change.

Category: Taxes

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