How SB 3 changes current law

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill phases down the state income tax rate to a flat 2.75% over two years.

• Section 5747.02

  the tax shall be levied at the rate of 1.38462% for the first twenty-six thousand fifty dollars of such income and, for taxable years beginning in 2024, twenty-six thousand seven hundred dollars of such income for taxable years beginning in 2025, and twenty-seven thousand three hundred fifty dollars of such income for taxable years beginning in 2026 and thereafter. → the tax shall be levied at the flat rate of 2.75%.

  This change establishes a flat tax rate of 2.75% instead of a graduated rate structure.

• Section 5747.02

  the tax is hereby levied as follows:

  This change removes the graduated tax rates structure for individuals starting in 2025.

• Section 5747.02

  more than $100,000 but not more than $2,394.32 plus 3.688% of the $115,300 amount in excess of $100,000 → more than $100,000 $2,451.44 plus 3.125% of the amount in excess of $102,400

  This change modifies the tax calculations for income exceeding $100,000 to align with the new flat rate.

• Section 5747.02

  the tax shall be levied at the rate of 3.688% for income in excess of $100,000 → the tax shall be levied at the rate of 3.125% for income in excess of $102,400

  This change lowers the tax rate for higher income earners.

• Section 5747.02

  The Tax Commissioner shall not make adjustments in 2025 or 2026 to the income amounts in divisions (A)(2) and (3) of section 5747.02 of the Revised Code, as otherwise required by division (A)(5) of that section.

  This change prevents tax amount adjustments in 2025 and 2026, stabilizing the income brackets during the phase-down.

• The new flat tax rate applies for taxable years beginning in 2025.

  This addition clarifies when the new tax rate takes effect.