Budget Contains Significant Personal Income Tax Relief

Republican House and Senate leaders reached a compromise in the new budget to provide a 3% across-the-board personal income tax cut. This relief will benefit small- and mid-sized employers that pay taxes on business income through an owner’s individual income taxes. Details include:

The new budget is expected to result in nearly $1.7 billion in personal income tax relief over the biennium, while making Ohio more competitive. Senate Finance Committee Chair Matt Dolan (R-Chagrin Falls) noted that “only Indiana now is lower than us among surrounding states.” Senate President Matt Huffman (R-Lima) said he thinks the budget will deliver the largest personal income tax reduction in state history. 6/30/2021