How to Pay Ohio State Taxes: Methods and Payment Plans

This article provides a guide on the different ways to pay Ohio state income taxes. Taxpayers have several options for making payments to the Ohio Department of Taxation, each with specific requirements and procedures. Understanding these methods ensures that tax obligations are met correctly and on time.

Information and Forms Needed for Payment

For any payment method, you will need your Social Security Number or Individual Taxpayer Identification Number (ITIN), the tax year, the exact payment amount, your filing status, and your current address. Having this information ready is fundamental to ensuring your payment is correctly applied to your account.

The Ohio Department of Taxation uses payment vouchers to accompany mailed payments. The primary voucher for individual income tax is Ohio Form IT 40P, and you must use Ohio Form SD 40P if you owe school district income tax. These forms are not interchangeable and must be used for their designated purposes to avoid processing delays.

These vouchers serve as a transmittal document that ensures your check or money order is posted to the correct tax account and period. You can download the most current versions of the IT 40P and SD 40P from the Ohio Department of Taxation’s website.

Methods for Submitting Your Ohio Tax Payment

Online via Electronic Check

One of the most direct ways to pay is by electronic check through the state’s OH|TAX eServices portal. This service is free and allows you to authorize a direct withdrawal from your checking or savings account. To initiate a payment, you will need to provide your bank’s routing number and your account number.

The system allows you to schedule your payment for a future date, up until the tax filing deadline. This feature provides flexibility, as you can set up the payment without the funds being withdrawn immediately. Once the transaction is complete, your bank statement will show a debit from the “STATE OF OHIO,” serving as your record of payment.

Online via Credit or Debit Card

You can also pay your Ohio income taxes using a major credit or debit card, including Visa, Mastercard, Discover, or American Express. This service is facilitated through a third-party payment processor, ACI Payments, Inc. To use this method, you will select the credit card payment option on the department’s website, which redirects you to the processor’s secure portal.

The third-party processor charges a convenience fee for this service. The fee is 2.5% of the total tax payment or a minimum flat amount. This fee is paid directly to the processor and is not part of your tax liability to the state. Your card statement will show two separate transactions: one for the tax payment to the State of Ohio and another for the convenience fee to ACI Payments, Inc.

Payment by Mail

For a mailed payment, send a physical check or money order with the appropriate payment voucher. Make the check or money order payable to the “Ohio Treasurer of State” and write your Social Security number and the tax year in the memo line. The completed voucher and payment for Form IT 40P should be mailed to P.O. Box 182131, Columbus, OH 43218-2131.

Setting Up a Payment Arrangement

If you are unable to pay your full tax liability by the due date, you may be able to set up an installment agreement with the Ohio Department of Taxation. This allows you to make smaller, more manageable monthly payments over a set period until the balance is paid in full. An installment agreement does not eliminate penalties and interest, which will continue to accrue on the unpaid balance, but it prevents more severe collection actions.

To request a payment plan, you can use the OH|TAX eServices portal on the Department of Taxation’s website. You will need to log in or create an account to submit your request. The department will review your financial situation and the amount you owe to determine if you qualify for an agreement and the terms of the plan.

After submitting your request, the department will contact you with a decision or a request for more information. If approved, you will receive details about your monthly payment amount and the due date for each payment. It is important to adhere strictly to the terms of the agreement and make all payments on time to keep your account in good standing.