Bill > SB3

This bill aims to progressively reduce Ohio's state income tax to a flat rate of 2.75% over two years by modifying the tax rates and income brackets for individuals, trusts, and estates. For the 2024 tax year, the bill introduces an initial reduction in tax rates, with a maximum rate of 3.5% for income over $100,000. In 2025, further reductions are implemented, with the top marginal rate decreasing to 3.125% for income over $102,400, and in 2026 and thereafter, a flat 2.75% rate will be applied. The bill also freezes the annual inflation adjustments to income brackets for 2025 and 2026, preventing automatic increases typically made by the Tax Commissioner. These changes are designed to provide tax relief to Ohio residents by lowering the overall tax burden, with the goal of supporting economic growth and providing more take-home pay for taxpayers. The bill maintains the existing tax structure's basic framework but significantly reduces the tax rates across different income levels, ultimately creating a simpler, lower taxation system for Ohio residents.

Budget and Finance

https://www.legislature.ohio.gov/legislation/136/sb3