Self-employed taxes and LLC costs in Ohio, 2026
In Ohio the city where you work taxes your profit on its own terms, and the LLC itself costs almost nothing to keep.
Total tax on this income in 2026
$17,800
Put aside 21% of each payment · $4,450 per quarter
| Self-employment tax (15.3%) | $12,010 |
| Federal income tax | $5,790 |
| Ohio income tax | $0 |
| QBI deduction used | $12,579 |
| Effective rate on all income | 20.9% |
With an S corp election and a $34,000 salary, about $3,547 less tax (check it).
Computed by Radif Partners from IRS and Ohio agency documents read on October 15, 2026 · How we calculate
Ohio is a state where the local layer matters as much as the state one. Most cities levy a municipal income tax on residents' and workers' wages and on the net profit of self-employed people and businesses: 2.5% in Columbus, 2.5% in Cleveland, 1.8% in Cincinnati. In Columbus, $75,000 of profit means about $1,875 of city tax. The state income tax was rewritten for 2026 by a budget law, and the new schedule could only be read through an extract of the statute today, so this page gives no Ohio income tax figure and the calculator leaves it out; the federal part on $75,000 is $15,495 for a single filer. On the business side, an Ohio LLC files no annual report and pays no franchise tax, and the Commercial Activity Tax only reaches companies with receipts above $6,000,000. The S election saves about $5,312 federally at $120,000 of profit with a $50,000 salary, but Ohio cities can tax the S corporation's own net profit too.
Ohio at a glance, 2026
| LLC filing fee | not verified |
| None | none |
| Income tax | see the state revenue department |
| S corporation election | followed by the state |
| Tax on $75,000 of profit (single) | $15,495 federal; Ohio tax not verified |
A self-employed person in Ohio usually files with three governments: the IRS, the state, and the municipality, and sometimes a fourth, the school district, which in some areas levies its own income tax. City rates on net profits reach 2.5% in several large cities, and residents get a credit, often capped at the home city's rate, for tax paid to the city where they work (Columbus Income Tax Division). A freelancer living in one city and working on site in another needs to look at both. The Columbus page computes the city tax with its credits.
Local tax on business profit
Columbus Municipal income tax (wages and net profits)
$2,000
| Rate | 2.5% |
A state rate schedule in transition
For 2026, the state budget law rewrote Ohio's brackets for nonbusiness income. The 2026 estimated tax worksheet published by the Department of Taxation was prepared before that change and still shows the older brackets, and the amended statute could only be read through an extract today, so the two sources disagree and neither is used here (Ohio DOT, annual tax rates). The calculator therefore shows federal tax and city tax but no Ohio income tax until the department's 2026 tables confirm the schedule. Ohio also treats business income separately from other income, with a deduction for part of it; its 2026 amount was not confirmed on a page opened today.
Estimated state payments are due when your expected Ohio tax after credits, minus withholding, exceeds $500, on the federal dates; municipal and school district estimates are paid separately to their own collectors (2026 Ohio estimated tax worksheet). The quarterly estimated tax guide covers the federal schedule.
Cheap to keep: the Ohio LLC
An Ohio LLC is formed with Articles of Organization on Form 610 and then files no annual report at all (Ohio SOS, Form 610). The filing fee could only be read through an extract today, so it is left blank in the calculator. Ohio has no franchise tax on LLCs, and the Commercial Activity Tax, a tax on gross receipts, has had no annual minimum since 2024 and applies only to receipts above $6,000,000, at 0.26% (Ohio DOT, CAT information release). A one-person business will not reach it.
The S corporation and city net profit tax
Ohio follows the federal S election for the state income tax, but municipal net profit tax works differently: most cities tax the net profit of an S corporation or an LLC at the entity level, at the city rate, for example 2.5% in Cleveland (Cleveland Central Collection Agency, tax rates). The owner's salary is then taxed as wages where the work is done. Ohio also offers an elective pass-through entity tax, whose 2026 rate was not confirmed today. The LLC vs S corp calculator runs the federal side; for a state with a flat city-level tax on earnings next door, see Pennsylvania.
City and county taxes on business income in Ohio
| Place | Tax | Rate | Who pays |
|---|---|---|---|
| Columbus | Municipal income tax (wages and net profits) | 2.5% | Residents get 100% credit for tax paid to other cities up to 2.5% |
| Cleveland | Municipal income tax (CCA) | 2.5% | Resident credit 100% up to 2.50% limit |
| Cincinnati | Municipal income tax | 1.8% | Resident credit for tax paid to other cities up to 1.8% |
| Toledo | Municipal income tax | 2.5% | residents, nonresidents working in Toledo, business net profits |
| Akron | Municipal income tax | 2.5% | Credit for tax paid to other municipalities up to 2.5% |
| Dayton | Municipal income tax | 2.5% | 2.25% base + 0.25% (Ord. 32072-23, Jan 1 2025 - Dec 31 2032); resident credit up to 2.5% |