Ohio Will Phase in 2.75% Flat Tax Rate Under Two-Year Budget

Ohio is scrapping its graduated income tax and adopting a flat 2.75% rate for all taxpayers under a two-year budget bill headed to the desk of Gov. Mike DeWine (R).

Both the Senate and the House passed compromise budget legislation, HB 96, Wednesday that collapses Ohio’s three-bracket tax system in phases over the 2026-27 biennium. The legislation passed without a single yes vote from Democrats in the Republican-controlled legislature. The Senate approved the bill by a vote of 23-10 and the House followed with a vote of 59-38.

DeWine is expected to sign the $60 billion general fund ...