Tax Information

Businesses in Monroe benefit from low local tax rates in addition to a very business-friendly tax climate at the state level.

Local Tax Rates

  • Employee earnings tax (tax paid by the employee to the City): 2%
  • Corporate net profits tax: 2%
  • Butler County sales tax: 6.5%
  • Warren County sales tax: 6.75%
  • Butler County property tax (industrial effective rate for Tax Year 2017): 67.927359 (District C18)
  • Warren County property tax (industrial effective rate for Tax Year 2017): 64.04 (District 58) or 64.32 (District 59)

State Tax Structure

The State of Ohio phased out personal property tax for most businesses in 2009. The personal property tax was replaced with the Commercial Activity Tax (CAT). The CAT applies only to business activities in Ohio. The first $1 million in taxable gross receipts isn't taxed, and the tax rate after that thresshold is only 0.26%.

In addition to the low CAT rate, in Ohio there is:

  • No tax on corporate profits
  • No tax on machinery, equipment, and R&D investments (when M&E is used for inventory that is primarily shipped out of Ohio)
  • No tax on products sold to customers outside of Ohio
  • No tax on tangible personal property