State kWh Tax
FirstEnergy
Current Rate
0.4650¢/kWh
Est. 1999
Ohio state excise tax on electricity consumption, collected by the utility and remitted to the state.
📜 History & Background
The State kWh Tax (SKT) is Ohio's kilowatt-hour excise tax on electricity consumption, collected by utilities on behalf of the state and remitted to the Ohio Department of Taxation. The tax was established as part of Ohio's electric deregulation legislation (Senate Bill 3, 1999). It replaced the prior franchise tax structure for electric utilities, shifting taxation from the utility entity to consumption — a common approach in deregulated markets. The current rate of 0.465¢/kWh has been relatively stable over the past two decades.
⚙️ How It Works
Every kWh of electricity you consume in Ohio is subject to this state excise tax. It is collected by your utility (or in some cases your supplier) as part of your bill and remitted to the state. The rate is set by the Ohio General Assembly under Ohio Revised Code § 5727.81.
🔒 If You Switch Suppliers
Non-bypassable — the Ohio kWh tax applies to all electricity consumption regardless of your supplier. It may appear on your supplier's bill instead of the utility bill after switching, but you will still pay it.