Columbus, OH – Ohio ranks an unimpressive 35th out of all 50 states in this year’s Economic Freedom of North America report, released by the Economic Research Center at The Buckeye Institute in partnership with Canada’s Fraser Institute. The report ranks every state and province in North America based on economic freedom, as measured by government spending, taxation, and labor market restrictions. 

“These rankings show that Ohio has a lot of work to do to strengthen economic freedom and reenforces what we already know about next year’s budget—lawmakers must resist the urge to tax and spend their way out of these trying times and instead take steps to reduce unnecessary regulations and spending,” said Rea S. Hederman Jr., executive director of the Economic Research Center and vice president of policy at The Buckeye Institute. “Doing so will improve Ohio’s ranking, and, in the process, will lay the groundwork for robust economic growth going forward.”

The latest edition of the report uses a revised methodology to score states on their government spending, taxation, and labor market restrictions. The current rankings are based on data from 2018 (the latest year data was available). Ohio now ranks 35th among the 50 states in overall economic freedom with a score of 5.75, up two spots from last year’s rankings. The improvement is due to a drop in both government spending and tax revenue as a percent of personal income.

Ohio’s Ranking in Key Areas

• Government Spending – 40th 
• Transfers and subsidies as a percent of personal income – 24th 
• Insurance and retirement payments as a percent of personal income – 49th 

Taxes – 24th 

• Income and payroll tax revenue as a percent of personal income – 29th 
• Ohio’s top income tax threshold is $213,350.
• Property tax and other tax revenue as a percent of personal income – 15th 
• Sales tax revenue as a percent of personal income – 33rd 

Labor Market Freedom – 33rd 

• Minimum wage income as a percent of per capita personal income – 32nd 
• Government employees as a percent of total employees – 17th 

Included in the report is Buckeye’s Ohio Economic Freedom Fact Sheet, which summarizes where Ohio ranks in various economic freedom policies and shows how it compares to neighboring states and the nation as a whole.

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