Changes to Ohio Commercial Activity Tax

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Commercial Activity Tax (CAT) is a tax imposed by the state of Ohio on the privilege of doing business in the state. While this tax has remained largely unchanged since it’s inception, updates and revisions have been introduced for the fiscal years 2024 and 2025.

Who Must File the Commercial Activity Tax
Calendar Year Taxpayer’s Taxable Gross Receipts (TGR)
2005 Through 2023 TGR > $150,000 (with bright-line presence)
2024 TGR > $3,000,000
2025 and thereafter TGR > $6,000,000

Source: Chart from the Ohio Department of Taxation

CAT Changes Effective January 1, 2024

  • The annual minimum tax is eliminated, for tax periods 2024 and thereafter. The $150 or $2,500 minimum charges are no more! Businesses will only need to pay the .26% on any taxable gross receipts exceeding $3 million.
  • The annual exclusion amount is increased to $3 million. Taxpayers with Ohio taxable gross receipts of $3 million or less per calendar year will no longer be subject to CAT. Businesses that anticipate less than $3 million in Ohio taxable gross receipts for 2024 should have filed their final returns and closed their accounts. Ensure this was taken care of by checking your account status on the Ohio Business Gateway.

CAT Changes Effective January 1, 2025

  • The annual exclusion amount is increased to $6 million. Taxpayers with Ohio taxable gross receipts of $6 million or less per calendar year will no longer be subject to CAT. Businesses that anticipate less than $6 million in Ohio taxable gross receipts for 2025 should plan to cancel their CAT accounts using a date of December 31, 2024 and file their final business returns by February 10, 2025.

You can sign up for tax alerts here: Tax Alerts from the Ohio Department of Taxation

Bob Wallish, CPA