Ohio cell phone tax lower than average


CAN YOU HEAR ME NOW?: In Ohio there is only a 0.70 percent difference between the sales tax, and the slightly higher wireless tax rate.

By Stephanie Kreuz | WatchdogWire.com

Here’s a tax you might not typically think of — the tax on your cell phone.

It’s worth considering. According to the Tax Foundation, four cities — Chicago, Baltimore, Omaha and New York City — have effective cell phone tax rates in excess of 25 percent of the customer bill.

They report, on average, “Americans pay an average of 17.05 percent in combined federal, state, and local tax and fees on wireless service. This is comprised of a 5.82 percent federal rate and an average 11.23 percent state-local tax rate.”

In Ohio, consumers pay an 8.45 percent in state and local taxes, on average, and 5.82 percent in federal taxes, amounting to an combined rate of 14.28 percent. This ranks as the 35th highest combined tax rate, and below the national average.

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