Ohio Commercial Activity Tax (CAT) Update
Ohio Commercial Activity Tax (CAT): What You Need to Know (And Do)
Ohio’s CAT is a 0.26% privilege tax on gross receipts for all business conducted in Ohio regardless if the business is located outside the state. This summary is meant to help filers understand the changes and updates, what is required in 2025 and links to additional information.
Minimum Gross Receipts Change
The minimum gross receipts that require an owner to register has changed to $6 million starting in 2025. The minimum total of gross receipts that require an owner to register is $6 million stating in 2025—up from $3 million in 2024 and $150,000 in 2023.
What Entity / Industry Types Are Subject to CAT
All entity types may be subject to CAT (sole-proprietors, LLCs, corporations) and there are few industries excluded (including financial institutions and insurance companies).
Ownership Percentages
Individuals with over 50% ownership in multiple businesses must look at the combined receipts of the entities to determine if the sum is over the filing threshold.
When Are CAT Filings Due?
CAT filings are completed each quarter, with deadlines of:
- Fourth Quarter 2024: Due February 10, 2025
- First Quarter 2025: Due May 10, 2025
- Second Quarter 2025: Due August 10, 2025
- Third Quarter 2025: Due November 10, 2025
- Fourth Quarter 2025: Due February 10, 2025
What If I am Under the Threshold?
Taxpayers who anticipate their taxable gross receipts to be $6 million or less for the 2025 tax year may cancel their CAT account immediately by selecting the cancellation option on their final return (4th quarter 2024), due February 10. You can also login here and select “CAT Cancel Account” transaction. Thirdly, you can submit a Business Account Update form to cancel.
Additional Resources
Links to important pages at Tax.Ohio.Gov include:
- General information about CAT is here.
- A table of contents for CAT information is here.
- Changes to the Ohio’s CAT along with a webinar is here. Also, scrolling to the bottom of the webinar page brings you to a helpful frequently asked questions section.
Disclaimer: This article provides general information and should not be considered professional financial or tax advice. Please consult with a qualified CPA or financial advisor for guidance specific to your individual business needs.
Questions?
Adam manages a variety of tax and accounting engagements for business clients in numerous industries, including manufacturing, real estate, construction, alternative investments, and professional services. He has experience in federal tax, multi-state corporate income and franchise tax, and municipal income tax. In addition to his tax compliance background, Adam specializes in preparing and managing complex partnership engagements.