Kentucky and Ohio State Taxes – Everything is Not Similar

In whatever state you’re living in USA, you’d need to pay local taxes for local services. However, the tax laws are not same in every sate rather they vary from one state to the other. Therefore, it is a good practice to get updated with changes in tax laws of any particular state in which you are living, working, doing business or just spending vacation. Let us check the tax laws and types of taxes and tax relief options of two eastern states of America i.e., Kentucky and Ohio.

If you’re residing in the state of Ohio, you will fall in any of the seven brackets of income tax depending on your annual salary. Besides income tax you’d also need to pay local income taxes as well. However, the local income taxes are not applicable in every municipality. You can check with the local tax authorities in order to check if your municipality charge local income tax or not. Some school districts also charge income taxes so that public education system can be funded. You employer will collect the district income tax. If you’re one of the residents in these schools that are engaged in income tax collection, you’d need to use form SD100 to file your tax return.

Sales tax in Ohio is bit higher than other states. In Ohio you’d need to pay 5.5% sales tax. Transport authorities and counties collect local sales taxes. Rate of sales tax can be increased however there is a limit i.e., 8.5%. If you are using your personal property for business or residential usage, you’d need to pay tax on it. The good thing about living in Ohio is that you’d not be paying any kind of estate tax in Ohio.

If you’re living in state of Kentucky, you would be paying income tax anywhere between 2% to 6%. Kentucky has six income tax brackets. Whether you’re living in Kentucky or not but if you’re living in the state you are liable to pay state income tax. Even if you are filing tax as a couple or separately, the tax brackets will apply while filing return. Like every other American state the due date is April 15th , however, some adjustments and extensions are there. You would need to check on this with local tax authorities of Kentucky.

The government has special provisions for people belong to lower income group. Someone belong to this group will get tax credits however; this totally depends upon the federal poverty level. If you own a personal or a real property in Kentucky, you are liable to pay taxes. There is no set tax rate as it depends on what type of property you own. The calculations of property tax are quite complex therefore, you should refer some authentic official website. Unlike Ohio, you’d need to pay estate as well as inheritance tax. Remember, if you’re living in Kentucky, you must file tax between January 1st and May 15.