Gross Receipts Tax Calculator 2026 — Ohio, Washington, Oregon, Nevada
Calculate gross receipts tax for Ohio CAT (0.26% over $1M), Washington B&O (0.471%–1.5%), Oregon CAT (0.57% with 35% labor subtraction), and Nevada Commerce Tax. Compare income tax vs GRT burden by state.
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Ohio / Oregon exempt first $1M $
Oregon: 35% of wages used as subtraction $
Oregon: 35% of COGS used as subtraction (if greater than wages) $
Used to compare income tax vs GRT burden Examples:
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Gross Receipts Tax
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Effective Rate on Revenue
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Taxable Receipts
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GRT Calculation Detail
How Gross Receipts Taxes Are Calculated
Unlike income tax, GRTs apply to all revenue regardless of profitability. A business losing money still owes GRT. This makes them particularly relevant for businesses with thin margins.
State-by-State Rates (2026)
Ohio CAT: 0.26% × (Gross Receipts − $1,000,000)
Exempt if taxable receipts ≤ $150,000
Washington B&O: Retail 0.471% | Service 1.5% | Wholesale 0.484%
No exemption threshold (small biz credit offsets low liability)
Oregon CAT: 0.57% × (Gross Receipts − $1,000,000 − Labor Subtraction)
Labor Subtraction = 35% × max(Wages, COGS)
Nevada Commerce Tax: 0.05%–0.331% depending on industry NAICS code
Exempt if Nevada gross revenue ≤ $4,000,000
Exempt if taxable receipts ≤ $150,000
Washington B&O: Retail 0.471% | Service 1.5% | Wholesale 0.484%
No exemption threshold (small biz credit offsets low liability)
Oregon CAT: 0.57% × (Gross Receipts − $1,000,000 − Labor Subtraction)
Labor Subtraction = 35% × max(Wages, COGS)
Nevada Commerce Tax: 0.05%–0.331% depending on industry NAICS code
Exempt if Nevada gross revenue ≤ $4,000,000
Example — Oregon Service Business
$3M revenue, $800K wages, $400K COGS, service classification:
Labor subtraction = 35% × max($800K, $400K) = $280,000
Taxable receipts = $3,000,000 − $1,000,000 − $280,000 = $1,720,000
Oregon CAT = $1,720,000 × 0.57% = $9,804
Effective rate on gross revenue: 0.33%
Labor subtraction = 35% × max($800K, $400K) = $280,000
Taxable receipts = $3,000,000 − $1,000,000 − $280,000 = $1,720,000
Oregon CAT = $1,720,000 × 0.57% = $9,804
Effective rate on gross revenue: 0.33%
Extended
Income Tax vs Gross Receipts Tax Comparison
See total tax burden (GRT + federal income tax) compared across GRT states for your revenue and margin
Compare total state tax burden: GRT vs a hypothetical state income tax at common state rates, using the net income entered above.
| State | GRT Tax | Eff. Rate on Revenue | Comparable Income Tax (5.5%) | GRT Saves / Costs vs Income Tax |
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Frequently Asked Questions
What is a gross receipts tax and how is it different from income tax?
A gross receipts tax (GRT) is levied on total business revenue with no deduction for expenses, wages, or cost of goods sold — unlike income tax, which only taxes profit. This makes GRTs pyramiding: each business in a supply chain pays GRT on its gross revenue, which can stack through multiple transactions. GRTs are particularly burdensome for high-revenue, low-margin businesses like distributors and contractors. They apply regardless of profitability.
Which states have a gross receipts tax in 2026?
As of 2026, the major states with broad-based gross receipts taxes are: Ohio (Commercial Activity Tax / CAT at 0.26% over $1M), Washington (B&O tax at 0.471% retail / 1.5% services), Oregon (Corporate Activity Tax / CAT at 0.57% over $1M with 35% labor subtraction), Nevada (Commerce Tax at varying rates by industry), New Mexico (Gross Receipts Tax at ~5%), Delaware (on certain business types), and Texas (franchise margin tax at 0.75%, functionally a GRT). Traditional income-tax states like California, New York, and New Jersey do not impose a broad GRT.
How does Washington State B&O tax work?
Washington's Business & Occupation (B&O) tax applies to gross receipts with no deduction for labor or expenses. The rate depends on business classification: Retailing: 0.471%, Wholesaling: 0.484%, Manufacturing: 0.484%, Service & Other Activities: 1.5%, and various other rates for specific industries. There is a small business credit that effectively exempts businesses with annual B&O tax liability below $125 (roughly $8,333 taxable gross receipts for services). Multiple tax categories can apply simultaneously if your business has mixed activities.
Does Oregon's CAT allow any deductions?
Oregon's Corporate Activity Tax (CAT) allows one major subtraction: 35% of the greater of cost of goods sold or labor costs (wages and salaries paid). This means a service business with $1M in wages would subtract $350K from its gross receipts before applying the 0.57% rate. This labor subtraction is unique to Oregon and makes its effective rate meaningfully lower for labor-intensive businesses than the headline rate suggests. The exemption threshold is $1M in Oregon commercial activity.
Can I deduct a state gross receipts tax on my federal return?
Yes — GRTs paid are deductible as ordinary and necessary business expenses on your federal tax return (Schedule C for sole proprietors, Form 1120 for corporations, Schedule E/K-1 for pass-throughs). The federal tax savings from the deduction partially offsets the GRT cost. For a C-Corp at 21% federal rate, a $10,000 GRT costs only $7,900 after the federal deduction. Individual owners in higher brackets get even more of the cost back through the federal deduction.