CPA for Columbus, OH Clients: Remote Tax, Payroll and Accounting

We are a Naperville, Illinois CPA firm, and we serve Columbus-area clients remotely; we do not have an office in Ohio. Columbus taxpayers face three layers that interact: an Ohio income tax that is moving to a single rate, a city income tax that applies to people who live or work in Columbus, and a gross receipts tax on larger businesses called the commercial activity tax. This page explains each.

Ohio's income tax is flattening

Under Ohio law, no tax applies to income up to $26,050 after exemptions. For tax year 2025, an individual owes $342.00 plus 2.75% of the amount over $26,050 up to $100,000, and $2,394.32 plus 3.125% of the amount over $100,000. For tax year 2026 and later, the schedule is $332.00 plus 2.75% of the amount over $26,050, with no higher bracket. The dollar amounts are adjusted for inflation each year. Example, using the statute's 2025 figures: an Ohio taxable income of $120,000 produces $2,394.32 plus 3.125% of $20,000 ($625.00), or about $3,019. The same income under the 2026 schedule would be $332.00 plus 2.75% of $93,950, or about $2,916. Ohio's separate treatment of business income can matter more than the bracket change: taxable business income is taxed at a flat 3%, so the line between business and non-business income on the return deserves attention. Our Ohio page covers state rules.

The Columbus city income tax

The City of Columbus Income Tax Division collects, audits and enforces the city's 2.5% income tax, as well as the city's lodging excise tax and the Franklin County convention authority's. It serves those who live, work and conduct business in Columbus. Individuals and businesses pay estimated tax on April 15, June 15, September 15 and a final installment on December 15 for corporations or January 15 for individuals. Payments can be made online through the city's CRISP system or by mail with forms IR-PV for individuals and BR-PV for businesses. The city also administers an admissions tax and short-term rental excise tax. Example: $100,000 of taxable wages earned in Columbus produces $2,500 of city tax at 2.5% before any credits.

Cities in Ohio can tax the same income when someone lives in one and works in another, and the rules for relief between them are detailed. If you moved to Columbus, changed jobs, or started working remotely, ask us how your city tax is being handled. Our guide to local payroll taxes explains what employers withhold.

The commercial activity tax

The CAT is Ohio's gross receipts tax. The rate is two and six-tenths mills per dollar, or 0.26%, of taxable gross receipts after subtracting an exclusion amount for the calendar year. The exclusion amount is $3 million in 2024 and $6 million beginning in 2025. The tax is imposed on the business, not on its customers by law. Many small businesses fall below the exclusion and owe no CAT, but they should check registration and filing rules before assuming. Our business tax preparation work covers these entity-level taxes.

The community

The Columbus metro area has about 43,600 residents who identify as Asian Indian alone or in combination (roughly 2.0%). Delaware County, north of Columbus, is about 5.3% (about 12,100), and Franklin County is about 1.9% (American Community Survey, 2020 to 2024). We support families and employers with the US-India tax treaty, India account reporting and payroll services.

How we can help

We prepare federal, Ohio and Columbus returns, keep bookkeeping and payroll for small employers, and look at multi-state situations through our multi-state tax work. For decisions about your own taxes, talk with a qualified professional.

Frequently asked questions

General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.