Bill > HB30

This bill proposes to gradually phase down Ohio's state income tax to a flat rate of 2.75% over two tax years, specifically targeting the income tax rates and brackets in section 5747.02 of the Ohio Revised Code. For taxable years beginning in 2024, the bill introduces an intermediate tax rate structure with a top marginal rate of 3.5% for income over $100,000, which then further reduces to a 3.125% rate for income over $102,400 in 2025. Starting in 2026, the tax rate will be a flat 2.75% for all taxable income above $27,350. The bill also temporarily suspends the annual automatic inflation adjustments to income tax brackets that are normally performed by the Tax Commissioner in 2025 and 2026. The stated purpose of these changes is to provide revenue for schools, local government functions, property tax relief, and general state revenue, while simultaneously reducing the overall tax burden on Ohio residents. These tax rate reductions are designed to be implemented gradually to minimize potential fiscal disruption and provide predictability for taxpayers and state budgeting.

Budget and Finance

https://www.legislature.ohio.gov/legislation/136/hb30