Understanding Ohio's Commercial Activity Tax (CAT) Due Dates in 2025

 

Ohio’s Commercial Activity Tax (CAT) is a significant consideration for businesses operating within the state. In 2025, there are notable changes and deadlines that businesses must be aware of to ensure compliance and avoid penalties. This comprehensive guide provides an in-depth look at the CAT, its due dates, and the recent changes affecting businesses in Ohio.(ofbf.org)

What Is the Ohio Commercial Activity Tax (CAT)?

The CAT is a privilege tax imposed on businesses for the right to do business in Ohio. It is calculated based on a business's gross receipts from activities conducted within the state, rather than on profits. The tax rate is set at 0.26% for taxable gross receipts exceeding $6 million per year. Businesses with gross receipts of $6 million or less are exempt from the CAT starting in 2025. (ofbf.org, bradyware.com, rubinbrown.com)

Key Changes to the CAT in 2025

1. Increased Exclusion Amount

Effective January 1, 2025, the annual exclusion amount for the CAT has increased from $3 million to $6 million. This means that businesses with taxable gross receipts of $6 million or less in a calendar year are no longer required to file or pay the CAT. (nfib.com)

2. Quarterly Filing Requirement

For businesses with taxable gross receipts exceeding $6 million, the CAT must be filed quarterly. The due dates for these quarterly returns in 2025 are:(ofbf.org)

  • First Quarter: May 12, 2025

  • Second Quarter: August 10, 2025

  • Third Quarter: November 10, 2025

  • Fourth Quarter: February 10, 2026

These returns must be filed electronically through the Ohio Business Gateway.(ohiocpa.com)

Important Deadlines for 2025

Understanding the specific deadlines for CAT filings is crucial for businesses to remain compliant:

Final Return for 2024

Businesses that anticipate having $6 million or less in taxable gross receipts in 2025 should file their final CAT return for 2024 by February 10, 2025. Additionally, they should cancel their CAT account effective December 31, 2024, to avoid unnecessary filings in 2025. (rubinbrown.com, ohiocpa.com)

Quarterly Returns for 2025

For businesses with taxable gross receipts exceeding $6 million, the quarterly CAT returns for 2025 are due on the following dates:(ohiocpa.com)

  • First Quarter: May 12, 2025

  • Second Quarter: August 10, 2025

  • Third Quarter: November 10, 2025

  • Fourth Quarter: February 10, 2026 (ohiocpa.com)

Filing and Payment Process

All CAT filings and payments must be completed electronically through the Ohio Business Gateway. This platform allows businesses to file returns, make payments, and manage their CAT accounts efficiently.(ohiocpa.com)

Penalties for Non-Compliance

Failure to file CAT returns by the due dates can result in penalties and interest charges. To avoid these, businesses should ensure timely and accurate filings. If a business's taxable gross receipts fall below the $6 million threshold in subsequent years, they may cancel their CAT account to prevent unnecessary filings. (nfib.com)

Staying informed about the CAT due dates and requirements is essential for businesses operating in Ohio. By understanding the recent changes and adhering to the filing deadlines, businesses can ensure compliance and avoid potential penalties. For more detailed information and assistance, businesses should consult the Ohio Department of Taxation's CAT page or seek advice from a tax professional.(tax.ohio.gov)

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