Ohio employees to pay less in state income tax in September - Cincinnati News, Weather, Sports from FOX19 NOW-WXIX

Ohio sales tax to increase one-quarter percent

Sales tax rates for Ohio counties in our area Sales tax rates for Ohio counties in our area
CINCINNATI, OH (FOX19) -

Ohio employees paying state income taxes will see a tax cut on paychecks beginning in September.

The Ohio Department of Taxation has issued new employer withholding tables to be used for payroll. The new tables go into effect on September 1. 

The new tables take into consideration the income tax rate reductions that went into effect when Amended Substitute House Bill 59 was signed into law. Employees paying state income taxes will pay 9% less starting in September and by 2015 a total of 10% less.

The new implementation will also cut small business taxes by up to 50% up to the first $250,000 of business income. The small business rate cut will take effect on January 1, 2013.

The new tax reform will, however, increase sales tax rates by 0.25%, a total of $1.15 billion over three years.

The history of sales tax in Ohio began in 1935 at 3%and slowly increased over the decades to 6% in 2003 which was later dropped to 5.5%. The latest change brings Ohio's state sales tax to 5.75% not including additional rates at the county level.

The Ohio Department of Taxation anticipates an overall net tax cut of $2.7 billion over the next three years. The goal is to create jobs and economic growth.

According to the department, groceries and take-out are exempt from sales tax along with housing and utilities, medical, and other expenses like education, prescription drugs, and gas. That means for the average household 35% of all purchases will be impacted.  

Copyright 2013 WXIX. All rights reserved.

  • FOX19 HeadlinesMore>>

  • Macron resists Trump's 'America first' in speech to Congress

    Macron resists Trump's 'America first' in speech to Congress

    Wednesday, April 25 2018 11:30 AM EDT2018-04-25 15:30:41 GMT
    Thursday, April 26 2018 1:51 AM EDT2018-04-26 05:51:33 GMT
    (AP Photo/Pablo Martinez Monsivais). French President Emmanuel Macron gestures as he is introduced before speaking to a joint meeting of Congress on Capitol Hill in Washington, Wednesday, April 25, 2018.(AP Photo/Pablo Martinez Monsivais). French President Emmanuel Macron gestures as he is introduced before speaking to a joint meeting of Congress on Capitol Hill in Washington, Wednesday, April 25, 2018.
    French President Emmanuel Macron extolled the "special bond" between the United States and France during his speech in front of a joint meeting of Congress.Full Story >
    French President Emmanuel Macron extolled the "special bond" between the United States and France during his speech in front of a joint meeting of Congress.Full Story >
  • Texas gang member executed for killing girl, grandmother

    Texas gang member executed for killing girl, grandmother

    Wednesday, April 25 2018 12:55 AM EDT2018-04-25 04:55:40 GMT
    Thursday, April 26 2018 1:23 AM EDT2018-04-26 05:23:56 GMT
    (Texas Department of Criminal Justice via AP). This undated photo provided by the Texas Department of Criminal Justice shows Erick Davila. Attorneys for the Texas death row inmate want the U.S. Supreme Court to halt his scheduled execution this week fo...(Texas Department of Criminal Justice via AP). This undated photo provided by the Texas Department of Criminal Justice shows Erick Davila. Attorneys for the Texas death row inmate want the U.S. Supreme Court to halt his scheduled execution this week fo...
    Attorneys for a condemned Texas prisoner are asking the US Supreme Court to halt his execution for killing a young girl and her grandmother in 2008.Full Story >
    Attorneys for a condemned Texas prisoner are asking the US Supreme Court to halt his execution for killing a young girl and her grandmother in 2008.Full Story >
  • Trump lawyer says he'll plead the Fifth in porn actress case

    Trump lawyer says he'll plead the Fifth in porn actress case

    Wednesday, April 25 2018 7:08 PM EDT2018-04-25 23:08:55 GMT
    Thursday, April 26 2018 1:22 AM EDT2018-04-26 05:22:14 GMT
    Michael Cohen appears in front of members of the media after a closed door meeting with the Senate Intelligence Committee last year. (Source: AP Photo/Andrew Harnik)Michael Cohen appears in front of members of the media after a closed door meeting with the Senate Intelligence Committee last year. (Source: AP Photo/Andrew Harnik)

    President Donald Trump's personal attorney says he'll exercise his constitutional right against self-incrimination in a lawsuit brought by a porn actress who said she had an affair with Trump.

    Full Story >

    President Donald Trump's personal attorney says he'll exercise his constitutional right against self-incrimination in a lawsuit brought by a porn actress who said she had an affair with Trump.

    Full Story >
Powered by Frankly