After months of negotiations, Governor Mike DeWine signed Ohio's FY 2020-2021 general operating budget, and the following are a few key points that may impact you or your business:
- Personal income tax rates decrease by 4% reducing the top individual tax rate to roughly 4.8%.
- Taxpayers with taxable income below $21,750 will no longer pay Ohio tax.
- The budget maintains the Business Income Deduction at $250,000 and maintains the 3% flat rate on business income in excess of $250,000. Lawyers and lobbyists are no longer eligible for the deduction. Sorry to our attorney friends. We didn’t lobby for this provision!
- The budget invests $15 million each year of the biennium in the TechCred program which is applicable to businesses who provide training to incumbent and prospective employees to earn a micro credential or certificate. More to come on this training reimbursement program.
Check out other blogs published by our tax team:
- Proposed Ohio Business Income Deduction Changes Will Increase Taxes For Business Owners
If you would like to speak to one of our tax specialists for more information, please call: 1 (866) 760-0940, visit our website, or send a note to Miranda.Hawk@brixeyandmeyer.com to setup a time to speak.