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HB 30

Phase-down the state income tax to a flat rate of 2.75%

136th Legislature (2025-2026) Introduced by Sarah Fowler Arthur and 11 co-sponsors

Ohio bill replaces progressive income tax with flat 2.75% rate, potentially reducing state revenue and shifting tax burden toward lower-income households.

Referred to committee
#taxation
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Bill Summary · HB 30

Legislative bill overview

HB 30 proposes to gradually eliminate Ohio's progressive income tax system and replace it with a single flat tax rate of 2.75% for all taxpayers. The bill would phase out the current tax bracket structure over an unspecified timeframe, creating a uniform tax obligation regardless of income level.

Why is this important

This represents a fundamental restructuring of Ohio's tax code that would significantly alter state revenue collection and tax burden distribution. The change affects every Ohio income earner and has major implications for state funding of schools, services, and infrastructure—areas typically dependent on income tax revenue.

Potential points of contention

  • Revenue impact: A flat 2.75% rate may generate substantially less state revenue than the current progressive system, potentially requiring cuts to state programs or increases in other taxes
  • Tax equity concerns: High-income earners would see significant tax reductions while lower-income households may see increases, fundamentally shifting tax burden distribution
  • Implementation feasibility: The bill doesn't specify a phase-in timeline, raising questions about how abruptly this transition would occur and how the state would manage resulting budget shortfalls

Compiled from official sources — confirm details with the bill’s official record.

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