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 percent less starting in September and by 2015 a total of 10 percent less.
The new implementation will also cut small business taxes by up to 50 percent up to the first $250,000 of business income. The small business rate cut will take effect on January 1, 2013.
However, the new tax cuts will increase sales tax rates by .0025 percent, a total of $1.15 billion over three years.
The Ohio Department of Taxation plan an overall net tax cut of $2.7 billion over the next three years to create jobs and economic growth.