1.2 Because You Pay for It

Another reason you should care about state and local government is simple—you pay for it. Every day, Ohio residents contribute to the work of government through taxes on property, income, and purchases.

According to the Tax Foundation, Ohioans face a combined state and local tax burden equal to about 8.9% of personal income. This means that, on average, Ohio residents pay nearly nine cents of every dollar they earn to state and local governments. That figure includes all types of state and local taxes—property taxes, state and local income taxes, and sales taxes—but does not include federal taxes paid to the IRS. For example, someone earning $50,000 per year would pay roughly $4,450 in total state and local taxes.

Ohio’s average effective property tax rate is about 1.30% of a home’s value, among the higher rates nationwide. These taxes fund schools, roads, police and fire departments, libraries, and many other services that shape everyday life.

Understanding how state and local governments collect, budget, and spend this money helps you see where your dollars go—and how your vote and voice influence the decisions that affect your community.

Knowing key tax terms like income, property, and sales taxes helps you recognize how governments raise money and why tax policy shapes the quality of local services. These definitions give you the language to follow and engage in conversations about how government is funded.

• Income Tax – A tax on the money people earn from wages, salaries, or other sources of income. In Ohio, both the state and many local governments collect income taxes to fund public services and programs.
• Property Tax – A tax collected by local governments—such as counties, cities, villages, and school districts—based on the assessed value of land and buildings. Property taxes are a major source of funding for schools, safety services, and local infrastructure.
• Sales Tax – A tax added to the price of goods and certain services at the time of purchase. In Ohio, both the state and counties collect sales taxes to raise revenue for government operations and public programs.