Article written by:
State and Local Tax
Late November ushered in important changes for Ohio taxpayers.
As of November 26, 2018, Ohio is the first state in the country to allow certain taxpayers to pay their tax bills with cryptocurrency. Now, Ohio business taxpayers can pay taxes with Bitcoin via the state’s new Cryptocurrency Tax Payment Portal. Here is a quick overview of Ohio’s new cryptocurrency payment option:
- At this time, Bitcoin is the only cryptocurrency Ohio accepts.
- This new service is only available for businesses operating in Ohio—not individual taxpayers.
- To get started, taxpayers just need to register online at OhioCrypto.com and follow the instructions to select the applicable tax and period.
- There are 23 taxes eligible for payment on OhioCrypto.com.
- Business taxpayers must pay a minimal transaction fee, network fee, and miner fee per transaction.
- Cryptocurrency payments are made online, through a cryptocurrency payment processor (BitPay), and are immediately converted to USD before they are deposited into a state account.
- BitPay protects business taxpayers from market volatility by setting the Bitcoin exchange rate for a 15 minute allotted time window for each transaction; BitPay assumes the risk of any market fluctuations during the allotted time windows.
On November 30, 2018, the Ohio Department of Taxation announced that Ohio will reduce withholding rates used by employers to calculate payroll deductions for state income tax. These reductions stem from Ohio’s 2015 state income tax cut (H.B. 64), which did not reduce withholding rates to match cuts in tax rates. With the new withholding rates, an Ohio taxpayer, for example, with taxable wages of $60,000 per year and three dependents will take home about $4.67 more each month. The changes take effect starting January 1, 2019.