Short answer
Ohio Department of Taxation balances unpaid 45 days after the due date are certified to the Ohio Attorney General for collection under Ohio Revised Code 131.02. The Department cannot set up payment plans; the Attorney General can, generally up to one year. Unsatisfied certified claims are cancelled only after 40 years.
Two offices, two stages
Stage 1
Ohio Department of Taxation
Issues the bill or assessment. Full payment is due within 60 days of receiving an assessment. The Department cannot set up payment plans, and partial payments do not stop billing or referral. Payment questions: 1-800-282-1780.
Stage 2
Ohio Attorney General
Receives balances certified 45 days past due (ORC 131.02). May add a collection cost. Sets up payment plans — generally up to one year with a signed contract — at 888-301-8885, and runs Ohio’s offer-in-compromise program.
Ohio income tax rates (nonbusiness income)
| Ohio taxable nonbusiness income | Tax year 2025 | Tax year 2026 and after |
|---|---|---|
| $0 – $26,050 | 0% | 0% |
| $26,051 – $100,000 | $342 + 2.75% of the amount over $26,050 | $332 + 2.75% of the amount over $26,050 (flat) |
| Over $100,000 | $2,394.32 + 3.125% of the amount over $100,000 |
Ohio taxes business income at a flat 3% (the Department of Taxation’s rate table). The City of Canton’s 2.5% tax is separate and is filed with the city, not the state.
The three clocks
| Collector | Clock | Payment plans |
|---|---|---|
| IRS | Generally 10 years from assessment (26 U.S.C. § 6502), paused in some situations such as a pending installment-agreement request | Short-term (180 days) and monthly installment agreements |
| State of Ohio (Attorney General) | Unsatisfied certified claims cancelled 40 years after certification (ORC 131.02(F)(2)) | Attorney General plans, generally up to one year, signed contract |
| City of Canton | No collection period published by the city | No published plan policy — call 330-430-7900 |
Ohio’s offer in compromise, in plain terms
- Only for claims already certified to the Attorney General. If one Ohio debt is certified, all State liabilities can be included — and the offer must address all of them.
- Grounds: economic hardship or doubt as to the liability. An offer is for less than the tax itself; asking only to waive penalty and interest is a different request.
- All delinquent returns must be filed first. Ohio will not compromise an estimated liability.
- No minimum percentage. Each offer is reviewed on its merits, and a rejection cannot be appealed.
- While an offer is pending, an existing Attorney General payment plan must keep being paid, liens can still be filed, and refunds can still be offset. The Attorney General starts no new collection activity for at least 30 days, but garnishments or foreclosures already filed continue.
- If accepted: a lump sum within 60 days, by certified check or money order (card by phone with the OIC Unit, 614-779-0105), and five years of on-time Ohio filing and payment afterward.
What to do with an Ohio tax letter
- Identify the sender. An Ohio Department of Taxation assessment, or an Ohio Attorney General collection letter? The return address and phone number tell which stage the debt is in.
- Check the date on an assessment. Full payment is due within 60 days of receiving an assessment. If the amount is wrong, the appeal deadline printed on the assessment matters more than anything else.
- File any missing Ohio returns. The Attorney General will not consider an offer in compromise on an estimated liability and requires all delinquent returns and reports to be filed first.
- Call the Attorney General for a plan if certified. Payment plans run through the Attorney General at 888-301-8885, generally up to one year under a signed contract.
- Coordinate with the IRS and city. An Ohio plan, an IRS plan and a City of Canton balance all draw from the same paycheck. Set them together so none defaults.
Where the state layer collides with the others
The IRS can levy an Ohio refund toward a federal balance, and Ohio can offset refunds toward a state balance. A Canton resident with all three layers open can lose the refund that was supposed to fund the city payment. That is why the order matters — sort the letters before sending money to whichever collector called last.
An Ohio balance rarely travels alone. When a federal change triggered it, the CP2000 page covers the 90-day amended-return rule; when an IRS balance is also open, plans at the IRS and the Attorney General have to fit one budget. For where an Ohio letter sits among the others, see how Ohio, IRS and Canton debts compare.
An Ohio Attorney General letter on top of IRS notices? A licensed professional can sequence both so neither plan collapses.
Call (330) 457-6198Questions people in Canton ask
Why did I get a letter from the Ohio Attorney General about state taxes?
Under Ohio Revised Code 131.02, amounts owed to the state that stay unpaid 45 days after they are due are certified to the Attorney General for collection. Once an Ohio Department of Taxation assessment is not paid or appealed, the Attorney General’s office takes over and may add a collection cost.
Can the Ohio Department of Taxation set up a payment plan?
No. The Department of Taxation states it is not authorized to set up payment plans, and partial payments do not stop billing or referral to the Attorney General. Plans are set up with the Attorney General’s office (888-301-8885), generally for up to one year under a signed contract.
Does Ohio tax debt expire after 10 years like IRS debt?
No. The IRS generally has 10 years from assessment to collect (26 U.S.C. § 6502). Ohio law cancels an unsatisfied Attorney General claim only 40 years after certification (ORC 131.02(F)(2)). Waiting out an Ohio balance is not a realistic plan.
Does Ohio have an offer in compromise?
Yes, through the Ohio Attorney General, for claims already certified for collection. Grounds are economic hardship or doubt as to the liability. All delinquent returns must be filed first, there is no minimum percentage, rejections cannot be appealed, and an accepted offer is generally paid as a lump sum within 60 days.
What is the Ohio income tax rate for 2026?
For tax years beginning in 2026, Ohio taxes nonbusiness income at $332 plus 2.75% of income over $26,050 (ORC 5747.02 as amended). For tax year 2025, the brackets were 0% up to $26,050, 2.75% up to $100,000, and 3.125% above $100,000.
Will the IRS take my Ohio refund?
It can. The IRS CP504 notice says the IRS may levy state tax refunds to pay a federal balance. Separately, the State of Ohio says it keeps the right to offset money owed to someone, including federal and state tax refunds, against state debts.
Back to the start: the full Canton three-layer overview.
Sources
Every fact on this page comes from these official pages, read on the date shown. Tax-law facts are re-checked at least every 90 days and local office facts every 180 days.
- Annual Tax Rates (individual income tax) — Ohio Department of Taxation. Accessed October 10, 2026.
- ORC 5747.02 — Tax rates (as amended by HB 96, 136th GA) — Ohio Revised Code (LSC). Accessed October 10, 2026.
- Pay Online — Individual and School District Income Taxes — Ohio Department of Taxation. Accessed October 10, 2026.
- Assessments FAQ — Ohio Department of Taxation. Accessed October 10, 2026.
- ORC 131.02 — Collecting amounts due to state — Ohio Revised Code (LSC). Accessed October 10, 2026.
- Collections — Offer-in-Compromise FAQs — Ohio Attorney General. Accessed October 10, 2026.
- 26 U.S.C. § 6502 Collection after assessment — Cornell LII. Accessed October 10, 2026.
- Understanding your CP504 notice — IRS. Accessed October 10, 2026.