Income Tax

Republican lawmakers are once again proposing eliminating Ohio's income tax by no later than 2028, and this bill also would erase the commercial activity tax, which 90% of businesses now don't pay.

Some advocates for lower-income Ohioans are pushing back against a plan to eliminate the state income tax, which has fallen sharply since 2004.

The plan could make Ohio the eighth state to eliminate personal income taxes as the main source of state revenue.

Ohio’s tax policy took a major shift in 2005 when lawmakers moved away from income tax. Lower income taxes have been sold through the years by Republicans as a way to increase jobs and bring business to Ohio. Now, a policy group’s new study shows that shift has increased taxes for low and middle-income Ohioans.

The Commercial Activity Tax was created by Republicans under Gov. Bob Taft in 2005, and raises more than $1.7 billion a year.

With a little over a day till the deadline on Wednesday, the new two-year state budget is on its way to Gov. Mike DeWine after overwhelmingly bipartisan votes in the House and Senate late Monday evening.

As state lawmakers are working on a final budget agreement to send to the governor by the end of the month, one provision of the bill is a change to the way employees who worked from home were taxed last year.

Mayors of some Ohio cities say past and future tax abatements might be affected by a bill under consideration that would allow employees to receive...

Republican leaders of the Ohio Senate have proposed a $75-billion-dollar, two-year budget includes a 5% across-the-board income tax cut – which is a boost from 2% cut in the House budget.

Last year, Ohio lawmakers passed a law allowing municipalities to continue to collect income taxes from employees who were temporarily working from home in other communities. The Ohio House has passed a bill that would change that.