HB 30

As Introduced
136th General Assembly
    Regular Session  H. B. No. 30
        2025-2026
  Representatives Mathews, A., Lampton
Cosponsors: Representatives Click, Williams, Fowler Arthur, Hall, T., John, Gross,
  Lear, Fischer, Robb Blasdel, Dean
  A BILL
  To amend section 5747.02 of the Revised Code to  1
  phase-down the state income tax to a flat rate  2
  of 2.75% over two years.  3
 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
      Section 1. That section 5747.02 of the Revised Code be  4
amended to read as follows:  5
      Sec. 5747.02. (A) For the purpose of providing revenue for  6
the support of schools and local government functions, to  7
provide relief to property taxpayers, to provide revenue for the  8
general revenue fund, and to meet the expenses of administering  9
the tax levied by this chapter, there is hereby levied on every  10
individual, trust, and estate residing in or earning or  11
receiving income in this state, on every individual, trust, and  12
estate earning or receiving lottery winnings, prizes, or awards  13
pursuant to Chapter 3770. of the Revised Code, on every  14
individual, trust, and estate earning or receiving winnings on  15
casino or sports gaming, and on every individual, trust, and  16
estate otherwise having nexus with or in this state under the  17
Constitution of the United States, an annual tax measured as  18
H. B. No. 30  Page 2
As Introduced
prescribed in divisions (A)(1) to (4) of this section.  19
       (1) In the case of trusts, the tax imposed by this section  20
shall be measured by modified Ohio taxable income under division  21
(D) of this section and levied in the same amount as the tax is  22
imposed on estates as prescribed in division (A)(2) of this  23
section.  24
       (2) In the case of estates, the tax imposed by this  25
section shall be measured by Ohio taxable income. The tax shall  26
be levied at the rate of 1.38462% for the first twenty-six  27
thousand fifty dollars of such income and, for taxable years  28
beginning in 2024, twenty-six thousand seven hundred dollars of  29
such income for taxable years beginning in 2025, and twenty-  30
seven thousand three hundred fifty dollars of such income for  31
taxable years beginning in 2026 and thereafter. For income in  32
excess of that amount, the tax shall be levied at the same rates  33
prescribed in division (A)(3) of this section for individuals.  34
       (3) In the case of individuals, the tax imposed by this  35
section on income other than taxable business income shall be  36
measured by Ohio adjusted gross income, less taxable business  37
income and less an exemption for the taxpayer, the taxpayer's  38
spouse, and each dependent as provided in section 5747.025 of  39
the Revised Code. If the balance thus obtained is equal to or  40
less not more than twenty-six thousand fifty dollarsthe  41
applicable dollar amount described in division (A)(2) of this  42
section, no tax shall be imposed on that balance. If the balance  43
thus obtained is greater than   twenty-six thousand fifty  44
dollarsthat amount, the tax is hereby levied as follows:  45
       (a) For taxable years beginning in 2023:  46
  47
H. B. No. 30  Page 3
As Introduced
  1  2
A   OHIO ADJUSTED GROSS INCOME LESS  TAX
    TAXABLE BUSINESS INCOME AND EXEMPTIONS
    (INDIVIDUALS) OR MODIFIED OHIO TAXABLE
    INCOME (TRUSTS) OR OHIO TAXABLE INCOME
    (ESTATES)
B   More than $26,050 but not more than       $360.69 plus 2.75% of the
    $100,000  amount in excess of $26,050
C   More than $100,000 but not more than      $2,394.32 plus 3.688% of the
    $115,300  amount in excess of $100,000
D   More than $115,300  $2,958.58 plus 3.75% of the
  amount in excess of $115,300
       (b) For taxable years beginning in 2024 and thereafter:  48
  49
  50
  1  2
A    OHIO ADJUSTED GROSS INCOME LESS TAXABLE        TAX
     BUSINESS INCOME AND EXEMPTIONS
     (INDIVIDUALS) OR MODIFIED OHIO TAXABLE
     INCOME (TRUSTS) OR OHIO TAXABLE INCOME
     (ESTATES)
B    More than $26,050 but not more than  $360.69 plus 2.75% of the
     $100,000  amount in excess of
  $26,050
C    More than $100,000  $2,394.32 plus 3.5% of
H. B. No. 30  Page 4
As Introduced
  the amount in excess of
  $100,000
       (b) For taxable years beginning in 2025:  51
  52
  1  2
A   OHIO ADJUSTED GROSS INCOME LESS  TAX
    TAXABLE BUSINESS INCOME AND EXEMPTIONS
    (INDIVIDUALS) OR MODIFIED OHIO TAXABLE
    INCOME (TRUSTS) OR OHIO TAXABLE INCOME
    (ESTATES)
B   More than $26,700 but not more than      $369.69 plus 2.75% of the
    $102,400  amount in excess of $26,700
C   More than $102,400  $2,451.44 plus 3.125% of the
  amount in excess of $102,400
       (c) For taxable years beginning in 2026 and thereafter,  53
$378.69 plus 2.75% of the amount in excess of $27,350.  54
       (4)(a) In the case of individuals, the tax imposed by this  55
section on taxable business income shall equal three per cent of  56
the result obtained by subtracting any amount allowed under  57
division (A)(4)(b) of this section from the individual's taxable  58
business income.  59
       (b) If the exemptions allowed to an individual under  60
division (A)(3) of this section exceed the taxpayer's Ohio  61
adjusted gross income less taxable business income, the excess  62
shall be deducted from taxable business income before computing  63
the tax under division (A)(4)(a) of this section.  64
H. B. No. 30  Page 5
As Introduced
       (5) Except as otherwise provided in this division, in  65
August of each year, the tax commissioner shall make a new  66
adjustment to the income amounts prescribed in divisions (A)(2)  67
and (3) of this section by multiplying the percentage increase  68
in the gross domestic product deflator computed that year under  69
section 5747.025 of the Revised Code by each of the income  70
amounts resulting from the adjustment under this division in the  71
preceding year, adding the resulting product to the  72
corresponding income amount resulting from the adjustment in the  73
preceding year, and rounding the resulting sum to the nearest  74
multiple of fifty dollars. The tax commissioner also shall  75
recompute each of the tax dollar amounts to the extent necessary  76
to reflect the new adjustment of the income amounts. To  77
recompute the tax dollar amount corresponding to the lowest tax  78
rate in division (A)(3) of this section, the commissioner shall  79
multiply the tax rate prescribed in division (A)(2) of this  80
section by the income amount specified in that division and as  81
adjusted according to this paragraph. The rates of taxation  82
shall not be adjusted.  83
       The adjusted amounts apply to taxable years beginning in  84
the calendar year in which the adjustments are made and to  85
taxable years beginning in each ensuing calendar year until a  86
calendar year in which a new adjustment is made pursuant to this  87
division. The tax commissioner shall not make a new adjustment  88
in any year in which the amount resulting from the adjustment  89
would be less than the amount resulting from the adjustment in  90
the preceding year.  91
       (B) If the director of budget and management makes a  92
certification to the tax commissioner under division (B) of  93
section 131.44 of the Revised Code, the amount of tax as  94
determined under divisions (A)(1) to (3) of this section shall  95
H. B. No. 30  Page 6
As Introduced
be reduced by the percentage prescribed in that certification  96
for taxable years beginning in the calendar year in which that  97
certification is made.  98
       (C)(1) The tax imposed by this section on a trust shall be  99
computed by multiplying the Ohio modified taxable income of the  100
trust by the rates prescribed by division (A) of this section.  101
       (2) A resident trust may claim a credit against the tax  102
computed under division (C) of this section equal to the lesser  103
of (a) the tax paid to another state or the District of Columbia  104
on the resident trust's modified nonbusiness income, other than  105
the portion of the resident trust's nonbusiness income that is  106
qualifying investment income as defined in section 5747.012 of  107
the Revised Code, or (b) the effective tax rate, based on  108
modified Ohio taxable income, multiplied by the resident trust's  109
modified nonbusiness income other than the portion of the  110
resident trust's nonbusiness income that is qualifying  111
investment income. The credit applies before any other  112
applicable credits.  113
       (3) Any credit authorized against the tax imposed by this  114
section applies to a trust subject to division (C) of this  115
section only if the trust otherwise qualifies for the credit. To  116
the extent that the trust distributes income for the taxable  117
year for which a credit is available to the trust, the credit  118
shall be shared by the trust and its beneficiaries. The tax  119
commissioner and the trust shall be guided by applicable  120
regulations of the United States treasury regarding the sharing  121
of credits.  122
       (D) For the purposes of this section, "trust" means any  123
trust described in Subchapter J of Chapter 1 of the Internal  124
Revenue Code, excluding trusts that are not irrevocable as  125
H. B. No. 30  Page 7
As Introduced
defined in division (I)(3)(b) of section 5747.01 of the Revised  126
Code and that have no modified Ohio taxable income for the  127
taxable year, charitable remainder trusts, qualified funeral  128
trusts and preneed funeral contract trusts established pursuant  129
to sections 4717.31 to 4717.38 of the Revised Code that are not  130
qualified funeral trusts, endowment and perpetual care trusts,  131
qualified settlement trusts and funds, designated settlement  132
trusts and funds, and trusts exempted from taxation under  133
section 501(a) of the Internal Revenue Code.  134
       (E) Nothing in division (A)(3) of this section shall  135
prohibit an individual with an Ohio adjusted gross income, less  136
taxable business income and exemptions, of twenty-six thousand  137
fifty dollars or less not more than the applicable amount  138
described in division (A)(2) of this section from filing a  139
return under this chapter to receive a refund of taxes withheld  140
or to claim any refundable credit allowed under this chapter.  141
       Section 2. That existing section 5747.02 of the Revised  142
Code is hereby repealed.  143
       Section 3. The Tax Commissioner shall not make adjustments  144
in 2025 or 2026 to the income amounts in divisions (A)(2) and  145
(3) of section 5747.02 of the Revised Code, as otherwise  146
required by division (A)(5) of that section.  147