Part 1 — CAT tax estimator

Enter your business’s Ohio taxable gross receipts for the calendar year. The CAT only applies to receipts above the annual exclusion — the first $6 million is not taxed.

Part 2 — Which vendor’s license do I need?

Every Ohio retailer making taxable sales must hold a vendor’s license before the first sale. Answer two questions:

About the Ohio CAT

The Commercial Activity Tax is a business privilege tax measured by Ohio gross receipts — not income. Since 2025, the annual exclusion is $6 million: businesses at or below it owe no CAT and generally don’t have to register or file (unless they belong to a combined or consolidated group over the threshold). Above the exclusion, the rate is 0.26% on the excess only. The old annual minimum tax was eliminated effective January 1, 2024, and annual filing no longer exists — everyone files quarterly.

How the CAT is calculated

The CAT is charged on taxable gross receipts — the total receipts from business activity in Ohio — not on profit or net income. The calculation has just three steps: take your Ohio gross receipts for the year, subtract the $6 million annual exclusion, and multiply what is left by 0.26% (2.6 mills, ORC 5751.03). Only the amount above the exclusion is taxed; nothing below it is.

Worked example. A business with $7,500,000 in Ohio gross receipts subtracts the $6,000,000 exclusion, leaving $1,500,000 in taxable receipts. At 0.26%, the estimated CAT is $3,900 for the year. Two more reference points from the same formula: receipts of exactly $6,000,000 produce a tax of $0, and receipts of $7,000,000 produce $2,600. A business at or below the exclusion generally does not have to register for or file the CAT at all — the main exception is a business that belongs to a combined or consolidated group whose members’ receipts together pass $6 million.

Filing runs on a quarterly cycle. The full $6 million exclusion is claimed on your first quarterly return of the year, and any unused part carries forward to the later quarters of the same year. Quarterly returns are due May 10, August 10, November 10, and February 10. If your receipts pass $6 million partway through the year, you must register for the CAT within 30 days.

That last change is where most older guides go wrong. Before 2024, the CAT reached businesses with as little as $150,000 in receipts and charged a tiered annual minimum tax of $150 to $2,600 on top of the rate. Many pages still being quoted today describe that repealed system. Under current law there is no minimum tax at all, annual filing no longer exists, and a business under the $6 million exclusion owes nothing.

How to use this page

1. Enter your business’s total Ohio gross receipts for the calendar year in Part 1 and press “Estimate my CAT” to see your taxable receipts and estimated tax.
2. Read the verdict line: it tells you whether you are over the $6 million exclusion (quarterly filing required) or under it (generally no CAT, no registration, no filing).
3. If you sell taxable goods or services at retail, answer the two questions in Part 2 to find out which vendor’s license type you need before your first sale.
4. Have your NAICS business activity code ready when you apply for the license — every Ohio vendor’s license costs a one-time $50 fee and never needs renewal.

CAT and vendor’s license — frequently asked questions

What is the Ohio CAT tax rate?

The rate is 0.26% — 2.6 mills per dollar under ORC 5751.03 — and it applies only to Ohio taxable gross receipts above the annual exclusion, not to your total receipts.

What is the CAT tax threshold for 2026?

The annual exclusion is $6 million for 2025 and later, including tax year 2026. Receipts at or below $6 million are not taxed, and most businesses under the threshold do not need to register or file.

How do I calculate my Ohio CAT?

Subtract $6 million from your Ohio gross receipts and multiply the remainder by 0.26%. For example, $7,500,000 in receipts minus the $6,000,000 exclusion leaves $1,500,000 taxable, which at 0.26% is $3,900.

Is there still an annual minimum CAT?

No. The tiered annual minimum tax was eliminated effective January 1, 2024. Any guide that quotes a minimum tax of $150 to $2,600 is describing the repealed pre-2024 rules.

My business is under $6 million in receipts. Do I still have to file?

Generally no — no tax is due and registration and filing are not required. The exception is a business that is part of a combined or consolidated taxpayer group whose combined Ohio receipts exceed $6 million.

How much does an Ohio vendor’s license cost?

Every vendor’s license costs a one-time $50 fee, with no annual renewal. The fee rose from $25 to $50 on April 9, 2025. A business with fixed locations needs one license per location.

I have two store locations. Do I need two licenses?

Yes. A county vendor’s license covers one fixed location, so each additional location needs its own license and its own $50 fee, and each location charges the sales tax rate of the county it sits in. If you move within the same county, the license can be transferred to the new address; moving to a different county requires a new license.

I sell online from outside Ohio. Do I need a vendor’s license?

No — out-of-state sellers register for a seller’s use tax account instead, which carries no license fee. Registration is required once your Ohio sales exceed $100,000, or you make more than 200 separate retail transactions into Ohio, in the current or previous calendar year.