Ohio Individual Income Tax Rates and Brackets, Old & New Old Individual Income Brackets According to the Legislative Budget Office, the reductions will decrease collections by $915.8 million in fiscal year (FY) 2022 and $784.5 million in FY 2023. Moreover, the lowest bracket level is increased to $25,000, which will exempt anyone making less than $25,000 per year from any state income tax liability. The change to the income tax decreases rates for all income brackets and eliminates the top bracket. After the two chambers’ deliberations, they agreed on changes to the income brackets along with 3 percent cuts (except for the new top bracket, which is reduced by over 9 percent). The Ohio Senate had proposed income tax cuts of 5 percent and the Ohio House had proposed income tax cuts of 2 percent. The tax cuts in dollar amounts agreed upon are larger than both the House and Senate proposals from earlier this year. It includes individual income tax cuts worth $1.7 billion and offers tax refunds for taxpayers who, in 2021, paid municipal income taxes to jurisdictions that collected taxes from commuters even though they weren’t commuting during the pandemic. The legislature agreed on a two-year budget ahead of today’s deadline, and the budget is now awaiting Gov. A rosy revenue outlook has allowed Ohio to join eight other states (Arizona, Idaho, Iowa, Louisiana, Montana, Nebraska, New Hampshire, and Oklahoma) in providing tax relief this legislative session.
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