Don't HR Alone #32 - Ohio, Kansas, Iowa, and Missouri State Updates


Ohio budget bill changes income tax brackets, establishes amnesty — OHIO — Withholding and Reporting

Ohio Gov. John Kasich has signed the 2018-19 Ohio budget, which eliminates some personal income tax rates and makes other income tax changes. The governor also released his veto message detailing the portions of the budget that he vetoed.

Personal income tax rates. For tax years beginning in 2017, the legislation eliminates the bottom two personal income tax brackets, applicable to income under $10,500 and adjusts the income ranges in the other brackets. Specifically, the new rates are as follows:

  • $10,501 - $15,800 has a marginal tax rate of 1.980% with a base tax liability of $77.96;

  • $15,801 - $21,100 has a marginal tax rate of 2.476% with a base tax liability of $182.90;

  • $21,101 - $42,100 has a marginal tax rate of 2.969% with a base tax liability of $314.13;

  • $42,101 - $84,200 has a marginal tax rate of 3.465% with a base tax liability of $937.62;

  • $84,201 - $105,300 has a marginal tax rate of 3.960% with a base tax liability of $2,396.39;

  • $105,301 - $210,600 has a marginal tax rate of 4.597% with a base tax liability of $3231.95; and

  • $210,601 and over has a marginal tax rate of 4.997% with a base tax liability of $8,072.59.

Tax amnesty. A tax amnesty will be administered from January 1, 2018, through February 15, 2018, for financial institution, sales, use, cigarette, tobacco products, income, school district income, and commercial activity taxes (qualifying delinquent taxes). The amnesty will cover all qualifying delinquent taxes that were due and payable from any person as of May 1, 2017, were unreported or underreported, and remain unpaid.

The term "qualifying delinquent taxes" does not include any tax: