SB3

Phase-down the state income tax to a flat rate of 2.75%

Introduced·1/22/25
Introduced Text

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.

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  • Core Provisions
  • Implementation
  • Impact
  • Legal Framework
  • Critical Issues

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Where it stands

Current
Ways and Means Committee
Next
Committee decision

Sponsors

0
9
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Democratic CaucusRepublican Caucus

History

Jan 29, 2025

Senate

Referred to committee: Ways and Means

Jan 22, 2025

Senate

Introduced