State comparisons
Ohio's revamped state taxes will be the lowest among the Midwestern states of Illinois, Indiana, Kentucky, Michigan, Pennsylvania and West Virginia.
An Ernst & Young analysis of key manufacturing and service industries in these Midwestern states – Illinois, Indiana, Michigan, Minnesota and Wisconsin – found that:
- Ohio's effective tax rate on new capital investments by manufacturing industries will be 40 percent lower than the five-state average
- Ohio's effective tax rate on selected service industries will be 29 percent lower than the five-state average
- For all industries studied, Ohio's effective state and local tax rate is 37 percent lower than the five-state average
