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State Budget Calls for Reductions in State Income Tax

State Budget Calls for Reductions in State Income Tax

July 5, 2023 Last Edit: June 5, 2025

Governor DeWine signed the $191 billion two-year spending plan on the Fourth of July

State Budget Calls for Reductions in State Income Tax

Gov. Mike DeWine chose the Fourth of July to sign the state budget into law. The spending plan passed the House and Senate the previous Friday.
The $191 billion two-year budget represented a compromise between the Senate and House versions of the bill. It included $3.1 billion in tax cuts and reduced Ohio’s income tax brackets to just two — 2.75% and 3.5%.
It also enhances Ohio’s August sales tax holiday and, in a big victory for small businesses, includes a provision exempting 90% of Ohio’s businesses from paying the commercial activity tax (CAT) by 2025. Eliminating CAT liability was a priority for NFIB, State Director Chris Ferruso said. “It’s something our small business members have needed for many years,” he said.
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