Does an Ohio LLC pay state income tax?

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 20, 2026 · Last updated Aug 20, 2026

The LLC does not pay a separate state income tax by default. The members pay Ohio individual income tax on their share of profit. Ohio's Business Income Deduction exempts the first $250,000 of business income, with a flat 3% rate on business income above that.

Quick facts

Default federal tax: Disregarded (1 member) or partnership (2+ members)
Ohio entity income tax: None by default - income passes to members
Members' return: Ohio IT 1040, due April 15
Business Income Deduction: First $250,000 exempt; 3% flat rate above
Commercial Activity Tax: Only receipts over $6 million (2025+)
Sales tax: 5.75% state + local, via vendor's license

The same question in every other state

This requirement is set at state level, so the answer changes when you cross a state line. Below is how 34 other states answer the same question, each linked to the page that cites the agency it came from. The full breakdown is on How to Form an LLC.

State	Answer
Arizona	Usually indirectly. A default Arizona LLC is a pass-through, so it pays no entity-level income tax; instead its members report their share on their Arizona individual return (Form 140) and pay Arizona's flat 2.5% income tax.
Arkansas	Arkansas imposes an individual income tax on residents. LLCs are typically pass-through entities, meaning profits are taxed at the owner's individual income tax rate.
Connecticut	Connecticut does not impose a direct state income tax on LLCs themselves. Instead, profits and losses typically 'pass through' to the owners' personal income tax returns.
Delaware	A Delaware LLC that does not do business in Delaware generally owes no Delaware income tax on its activity, but it still owes the flat $300 annual tax. LLCs that operate in Delaware must obtain a business license and pay gross receipts tax.
Florida	Florida has no personal income tax, so a Florida LLC taxed as a disregarded entity or partnership pays no Florida income tax on its profits, and neither do its members on their share. Only an LLC that elects to be taxed as a C corporation owes Florida's 5.5% corporate income tax.
Georgia	Georgia taxes LLC profits through the owners' returns by default, at Georgia's flat individual income tax rate. An LLC that elects corporate treatment pays the Georgia corporate income tax, which mirrors the individual rate.
Hawaii	Not at the entity level under Hawaii's default treatment. A Hawaii LLC is a pass-through: a single-member LLC is disregarded and a multi-member LLC is taxed as a partnership, so income is reported by the members.
Idaho	Yes, indirectly. Idaho does not tax most LLCs at the entity level, but the pass-through income is subject to Idaho individual income tax on the owners' returns.
Illinois	An LLC taxed as a partnership does not pay Illinois income tax itself but owes the 1.5% personal property replacement tax on Illinois net income and files Form IL-1065. Members pay Illinois individual income tax at 4.95% on their shares.
Indiana	By default an LLC is a pass-through entity, so profits are taxed on the owners' returns at Indiana's flat individual adjusted gross income tax rate of 2.95% for 2026, plus any county income tax. The LLC itself pays no separate state income tax unless it elects corporate treatment.
Iowa	Usually indirectly. A default Iowa LLC is a pass-through, so it pays no entity-level income tax; instead its members report their share on their Iowa individual return (IA 1040) and pay Iowa's flat 3.8% income tax for 2026.
Louisiana	Louisiana taxes an LLC by its federal classification. Profits of a pass-through LLC flow to the members and are taxed at Louisiana's flat 3% individual income tax rate.
Maine	By default a Maine LLC pays no entity-level income tax. Profit passes through to the owners, who report it on their Maine Form 1040ME and pay Maine's graduated individual income tax.
Maryland	A Maryland LLC is a pass-through entity by default, so profits are reported on the members' Maryland personal income tax returns; there is no separate LLC entity income tax. The LLC still owes the $300 SDAT annual report and any business personal property tax.
Massachusetts	By default an LLC is a pass-through, so members report income on the 5.0% Massachusetts personal income tax. An LLC that elects to be taxed as a corporation pays the corporate excise instead, with a minimum of $456.
Michigan	By default a Michigan LLC is a pass-through entity, so it pays no entity-level income tax. Its profit flows through to the members, who report their share on the Michigan individual income tax return (MI-1040) at the flat 4.25% rate for 2026.
Minnesota	By default an LLC is a pass-through entity, so profits are taxed on the owners' Minnesota individual returns at rates from 5.35% to 9.85%. An LLC taxed as a C corporation pays the 9.8% corporate franchise tax instead.
Mississippi	Mississippi imposes a state income tax on individuals and corporations. LLCs are typically pass-through entities, meaning profits are taxed at the member level, but the LLC itself may need to file an informational return.
Montana	Montana has a state income tax. An LLC's income passes through to the owners' Montana returns by default, unless the LLC elects corporate or S-corp treatment.
Nevada	No. Nevada imposes neither a personal income tax nor a corporate income tax, so a Nevada LLC files no state income return.
New Hampshire	The LLC itself pays the Business Profits Tax at 7.5% on New Hampshire business profits if its gross business income exceeds the filing threshold, which is $109,000 for 2026. New Hampshire does not tax the members on their distributive shares, and it has no tax on wages and salaries.
New Mexico	The LLC itself usually pays no entity-level income tax when taxed as a pass-through; the members pay New Mexico personal income tax on their shares. An LLC that elects to be taxed as a C corporation instead files and pays New Mexico corporate income tax.
New York	The LLC itself generally does not pay New York income tax as a pass-through. Instead the members pay New York personal income tax on their share of the profits.
North Carolina	A standard LLC is a pass-through entity, so its members pay North Carolina individual income tax on their share of the profit at the flat 3.99% rate for 2026. The LLC itself pays no corporate income or franchise tax unless it elects C-corporation treatment.
North Dakota	North Dakota has a state individual income tax. By default an LLC's profits pass through to the members' North Dakota returns; the LLC itself generally does not pay a separate state income tax unless it elects corporate treatment.
Oregon	Oregon has no general sales tax, but it does have a personal income tax. By default an LLC is a pass-through entity, so members report their share on their Oregon returns.
Rhode Island	By default the LLC's profit passes through to owners, who pay Rhode Island personal income tax on their share. The LLC may need to make pass-through withholding for nonresident members, and it registers for sales tax if it sells taxable goods.
South Dakota	No. South Dakota has no state personal income tax and no corporate income tax.
Tennessee	Tennessee has no personal income tax on wages or salaries, so members do not pay state income tax on their take-home pay. However, most LLCs are subject to the state franchise tax (0.25% of net worth, $100 minimum) and excise tax (6.5% of net earnings) filed on Form FAE 170 with the Department of Revenue.
Texas	No. Texas has no personal income tax and no corporate income tax on LLCs.
Utah	A Utah LLC is a pass-through entity by default, so profits are reported on the members' returns. Utah levies a flat individual income tax rate of 4.5% for the 2025 tax year, administered by the Utah State Tax Commission.
Vermont	Vermont imposes a business entity income tax on LLCs, which is a minimum tax of $300 per year. LLCs may also be subject to Vermont income tax on their profits, depending on their federal tax election.
Washington	No. Washington has no personal income tax and no corporate income tax, and there is no franchise tax on LLCs.
Wyoming	No. Wyoming imposes no personal income tax and no corporate income tax, so a Wyoming LLC files no state income return.

Full context for Ohio

This page answers one question. The complete Ohio guide -- covering the surrounding requirements, the forms, the agency, and what happens if you get it wrong -- is at Ohio LLC Tax Filing: Guide & Deadlines (2026).

Sources

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Laws and fees change; verify current requirements with the relevant government agency before acting.