Personal Tax Structure

Personal Taxes Reduced with Reforms

State Personal Income Tax

The state personal income tax – an adjusted net income tax on individuals, small businesses, estates, and trusts – was first enacted in 1971 as a state revenue source. When first enacted in 1971, the tax had a rate schedule comprised of six brackets, with a bottom rate of 1.0 percent on income under $5,000 and a top rate of 3.5 percent on income over $40,000. By 2005, this rate schedule had grown to encompass nine brackets, with a bottom rate of 0.712 percent on income under $5,000 and a top rate of 7.5 percent on income over $200,000.

The Ohio tax reform plan calls for a reduction and restructuring of the state’s personal income tax. The main feature of the tax reform plan is a 21 percent reduction in the Ohio income tax rate schedule. This reduction, phased in over five years at 4.2 percent per year, will result in a new top rate of 5.95 percent, which is a 21 percent reduction from the current top rate of 7.5 percent. In addition, the tax reform plan calls for the re-establishment of an accumulated trust income tax, the development of a new higher education grant program and the implementation of a new low-income tax exemption program.

Local Income Tax

The local income tax rate for Orrville is 1.0.

Local Sales Tax

The total combined sales tax rate in Wayne County is 6.25%, comprised of a state rate of 5.5% and a local rate of .75%. This rate is among the lowest ten percent of counties statewide.

Local Property Taxes

Tax rates vary between tax districts depending on all levies approved either by legislative authority or by the voters in the district. In Orrville, property tax rates are either $79.53 in Baughman Township or $81.23 in Green Township per $1000 of assessed value.

The assessed value of property is set at 35% of the appraised value of the property. Taxes are paid on the prior year’s value in halves billed in December/January and June/July each year.