Beginning January 1, 2025, the annual exclusion amount will increase from $3 million to $6 million. If your taxable gross receipts are $6 million or less per calendar year, you will NOT have to pay the Commercial Activity Tax (CAT).

Quarterly taxpayers who anticipate having $6 million or less in taxable gross receipts in tax year 2025 may cancel their CAT account immediately.

CAT Changes Effective January 1, 2025

• The annual exclusion amount is increased to $6 million.
• Taxpayers with taxable gross receipts of $6 million or less per calendar year will no longer be subject to the CAT.
• Quarterly taxpayers that anticipate $6 million or less in taxable gross receipts in 2025 should file their final returns, due February 10, 2025, and cancel their CAT accounts with an effective date of December 31, 2024.
• Taxable gross receipts exceeding $6 million will be taxed at 0.26%.

Please contact your financial consultant if you have any questions.

For more information, please visit tax.ohio.gov/catlawchanges.