Lead Sponsors: Representative Adam Mathews and Representative Brian Lampton
Status: Introduced (February 3, 2025)
Description: Reduces the marginal tax rate for the state’s top income tax bracket from 3.5% in Tax Year 2024 to 3.125% in Tax Year 2025 and eliminates the top bracket for Tax Year 2026 onwards. This would leave a single tax bracket with a marginal rate of 2.75% on taxable income over $27,350.
| Tax Year 2024 | |
| Ohio Adjusted Gross Income | Tax |
| Between $26,050 and $100,000 | $360.69 + 2.75% of the amount greater than $26,050 |
| More than $100,000 | $2,394.32 + 3.5% of the amount greater than $100,000 |
| Tax Year 2025 | |
| Ohio Adjusted Gross Income | Tax |
| Between $27,000 and $102,400 | $369.69 + 2.75% of the amount greater than $26,700 |
| More than $102,400 | $2,451.44 + 3.125% of the amount greater than $102,400 |
| Tax Year 2026 and Beyond | |
| Tax | |
| $378.69 + 2.75% of the amount greater than $27,350 |
The Legislative Service Commission has not published its fiscal analysis of the bill (as of February 10, 2025), but a reduction in income brackets will reduce state income tax revenue. Since the Local Government Fund receives 1.70% of state GRF tax revenue, this will decrease allocations from the LGF to counties. It is possible that this effect could be mitigated if the income tax reduction leads to more consumption of taxable goods and services.
CCAO Position: No position (as of February 2025)