Ohio SB3 phases down the state income tax to a flat rate of 2.75% over two years.

Ohio SB3 amends the state income tax structure to gradually reduce the tax rate to a flat 2.75%. For taxable years starting in 2023, the tax is set at 3.688% for income over $100,000, decreasing to 3.5% in 2024 and 2.75% in 2025 and beyond. The bill also prohibits the Tax Commissioner from making adjustments to income amounts in 2025 and 2026. This change affects individuals, trusts, and estates earning or receiving income in Ohio.

Ohio SB3 phases down the state income tax to a flat rate of 2.75% over two years.

Ohio SB3 amends the state income tax structure to gradually reduce the tax rate to a flat 2.75%. For taxable years starting in 2023, the tax is set at 3.688% for income over $100,000, decreasing to 3.5% in 2024 and 2.75% in 2025 and beyond. The bill also prohibits the Tax Commissioner from making adjustments to income amounts in 2025 and 2026. This change affects individuals, trusts, and estates earning or receiving income in Ohio.