State Tax Reform

Reduce operating costs with the lowest taxes in the Midwest.

In 2005, the State of Ohio eliminated a burdensome tax system by implementing a full-scale, sweeping tax reform. Ohio's new business tax model had reduced tax burden of up to 63% by 2010, the first year the reforms were fully implemented.

Ohio's current taxation system means businesses can:
  • Reduce operating costs - No tax on inventory or corporate income 
  • Enhance productivity - No tax on investments in machinery and equipment 
  • Attract talent - Shrink labor costs through a 21% reduction in personal income tax 
  • Enjoy a level playing field - All companies taxed at the same low rate 
  • Boost return on investment - No tax on product sold to customers outside Ohio 
  • Reward entrepreneurship - First $1 million in gross receipts are tax-free

With these reforms, Ohio and communities, like New Bremen, became even more competitive. Ohio's favorable business climate and high quality of living, combined with low business and personal costs, make us an increasingly viable location for business growth.

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 investment by manufacturing industries will be 40% lower than the five-state average. 
  • Ohio's effective tax rate on selected service industries will be 29% lower than the five-state average. 
  • For all industries studied, Ohio's effective state and local tax rate is 37% lower than the five-state average.

State Taxes

Ohio executed tax reform that substantially lowered the cost of doing business - with the lowest taxes in the Midwest.

Corporate Income Tax

None

Corporate Franchise Tax

None

Gross Receipts Tax

The Commercial Activities Tax (CAT) is 0.26% on sales within the State of Ohio. Sales outside of Ohio are exempt. The first $1 million in eligible sales are exempt from the CAT.

Personal Income Tax

Nine bracket system with a bottom bracket of .0587% for income under $5,000 and a top bracket of 5.925% for income over $250,000.

Sales and Use Tax

5.50% on taxable purchases

Sales and Use Tax on Production Machinery & Equipment

Exempt

 

Local Taxes

New Bremen and Auglaize County, Ohio have some of the lowest tax rates in the U.S. They help our local businesses reduce their operating cost and increase profitability.

Total tax rates for business operations in the Village of New Bremen

Sales and Use Tax

7.0% (state and county)

Income Tax

2.5% (city and school district)

Real Estate Tax

$41.61 per $1000 of tax value with 35% assessment (city, county, school & township)

 

Auglaize County Taxes

Sales and Use Tax

1.5% on taxable purchases

Personal Income Tax

None

Real Estate Tax

$11.75 per $1000 of tax value with assessment at 35%

 

Village of New Bremen

Sales and Use Tax

None

Personal Income Tax

1.5 % for residents and individuals working in New Bremen

Real Estate Tax

$3.35 per $1000 of tax value with assessment at 35%

 

New Bremen School District Tax Rates

Personal Income Tax

1.0%, applies to school district residents only

Real Estate Tax

$51.55 per $1000 of tax value with assessment at 35%

 

Township Tax Rates

Personal Income Tax

None

Real Estate Tax

$4.9 per $1000 of tax value with assessment at 35%