--- title: "Tax Update: Decrease in Income Tax Rates & Repeal on Sales Tax for Staffing Services" description: "Tax Update: Decrease in Income Tax Rates & Repeal on Sales Tax for Staffing Services" image: https://blog.brixeyandmeyer.com/hubfs/Copy%20of%20Tax%20Email%20Header-3.png --- [![Brixey Meyer](https://blog.brixeyandmeyer.com/hs-fs/hubfs/raw_assets/public/Brixey_and_Meyer_January2023/images/Brixey-white.png?width=3092&height=1080&name=Brixey-white.png "Brixey Meyer")](https://www.brixeyandmeyer.com/) - [Home](https://www.brixeyandmeyer.com/) - [Our Services](https://brixeyandmeyer.com/#headline-143-59) - [Audit & Assurance](https://www.brixeyandmeyer.com/audit-and-assurance) - [CFO Services](https://www.brixeyandmeyer.com/cfo-services) - [Cyber Risk Management](https://www.brixeyandmeyer.com/cyber-sure) - [Environmental, Social & Governance](https://www.brixeyandmeyer.com/environmental-social-governance-services-esg) - [Human Resources](https://www.brixeyandmeyer.com/human-resources) - [Operations, Technology & Strategy](https://www.brixeyandmeyer.com/operations-technology-strategy) - [Retirement Plan Administration](https://www.brixeyandmeyer.com/retirement-plan-administration) - [State & Local Tax](https://www.brixeyandmeyer.com/state-local-tax) - [Tax Compliance & Consulting](https://www.brixeyandmeyer.com/tax-compliance-and-consulting) - [Transaction Advisory](https://www.brixeyandmeyer.com/transaction-advisory-services) - [Valuation](https://www.brixeyandmeyer.com/valuation-services) - [Insights](https://blog.brixeyandmeyer.com/) - [About](https://brixeyandmeyer.com/?page_id=206) - [About B&M](https://www.brixeyandmeyer.com/about-bm) - [Our Team](https://www.brixeyandmeyer.com/our-team) - [Join Our Team](https://www.brixeyandmeyer.com/join-our-team) - [Contact](https://www.brixeyandmeyer.com/contact) - [Get Started](https://www.brixeyandmeyer.com/get-started) - [Client Portal](https://www.clientaxcess.com/#/login) - [Make a Payment](https://secure.cpacharge.com/pages/brixeyandmeyer/payments) - [Home](https://www.brixeyandmeyer.com/) - [Our Services](https://brixeyandmeyer.com/#headline-143-59) - [Audit & Assurance](https://www.brixeyandmeyer.com/audit-and-assurance) - [CFO Services](https://www.brixeyandmeyer.com/cfo-services) - [Cyber Risk Management](https://www.brixeyandmeyer.com/cyber-sure) - [Environmental, Social & Governance](https://www.brixeyandmeyer.com/environmental-social-governance-services-esg) - [Human Resources](https://www.brixeyandmeyer.com/human-resources) - [Operations, Technology & Strategy](https://www.brixeyandmeyer.com/operations-technology-strategy) - [Retirement Plan Administration](https://www.brixeyandmeyer.com/retirement-plan-administration) - [State & Local Tax](https://www.brixeyandmeyer.com/state-local-tax) - [Tax Compliance & Consulting](https://www.brixeyandmeyer.com/tax-compliance-and-consulting) - [Transaction Advisory](https://www.brixeyandmeyer.com/transaction-advisory-services) - [Valuation](https://www.brixeyandmeyer.com/valuation-services) - [Insights](https://blog.brixeyandmeyer.com/) - [About](https://brixeyandmeyer.com/?page_id=206) - [About B&M](https://www.brixeyandmeyer.com/about-bm) - [Our Team](https://www.brixeyandmeyer.com/our-team) - [Join Our Team](https://www.brixeyandmeyer.com/join-our-team) - [Contact](https://www.brixeyandmeyer.com/contact) - [Get Started](https://www.brixeyandmeyer.com/get-started) ![](https://blog.brixeyandmeyer.com/hubfs/Copy%20of%20Tax%20Email%20Header-3.png) # Tax Update: Decrease in Income Tax Rates & Repeal on Sales Tax for Staffing Services Published by [Jeff Kujawa](https://blog.brixeyandmeyer.com/author/jeff-kujawa) on Jul 7, 2021 2:05:54 PM ![Tax Email Header-Jul-07-2021-02-01-09-88-PM](https://blog.brixeyandmeyer.com/hs-fs/hubfs/Tax%20Email%20Header-Jul-07-2021-02-01-09-88-PM.png?width=750&name=Tax%20Email%20Header-Jul-07-2021-02-01-09-88-PM.png) Tax Rate Update Ohio individuals will experience a tax rate decrease that is retroactive to January 1, 2021. See the below chart for the income tax rate changes for all earners: ![Tax Rate Decrease Chart](https://blog.brixeyandmeyer.com/hs-fs/hubfs/Tax%20Rate%20Decrease%20Chart.png?width=750&name=Tax%20Rate%20Decrease%20Chart.png) The business income deduction is still applicable for business owners where the first $250,000 of business income is exempt from Ohio tax. Business income above $250,000 is subject to a 3% tax rate.  **Sales Tax Update** Effective October 1, 2021, Ohio repealed the sales tax on staffing services in an effort to increase employment and wages while saving Ohio businesses $300M annually.  If you would like to discuss these changes with one of our tax experts, [Start The Conversation](https://info.brixeyandmeyer.com/e2t/tc/VVSZrb8mW8v3N73TNScjDYs1W8ZpTlp4ttyxxN2XT74t3p_97V1-WJV7CgCDZW78z5ml7nmpBgW41CJny8t2vW4VG1XBh5LdBDzW39Pxrm5rywm3W4Z_Zl2501RLtW6xRYqQ48_TsxF6m09lqjgtqW8MM-7d5n-kY_W22P2Bt3dXfnqW1mgZLM8Pql59W6n_1cw1qXjjsW6DBCjJ5KjFKJW4sWhKg1d2_BXW1MvBF68_8RBVW4fq6Bp7GJZN-W162_j45M48hrW3K07ZT7lh7rhW7VTfFd3V2GXVVxblv-89-RrMW1XBVg77WLDn3W4CWD9g1Zrtb6N1F9fdg804N8N5H3FJbZmgmJW7_zFYt9cVfsy37R01) on our website! Tags: [Tax Planning](https://blog.brixeyandmeyer.com/topic/tax-planning), [ohio](https://blog.brixeyandmeyer.com/topic/ohio), [Tax](https://blog.brixeyandmeyer.com/topic/tax), [Tax Team](https://blog.brixeyandmeyer.com/topic/tax-team), [Tax updates](https://blog.brixeyandmeyer.com/topic/tax-updates), [Sales Tax](https://blog.brixeyandmeyer.com/topic/sales-tax), [Income Tax](https://blog.brixeyandmeyer.com/topic/income-tax) [Back to Blog](https://blog.brixeyandmeyer.com) - [Tweet](https://twitter.com/share) ## Related Articles ## [Tax Update: IRS Provides Certainty Regarding the Deductibility of Payments by Partnerships and S Corporations for State and Local Income Taxes](https://blog.brixeyandmeyer.com/tax-update-irs-provides-certainty-regarding-the-deductibility-of-payments-by-partnerships-and-s-corporations-for-state-and-local-income-taxes) IRS Notice 2020-75 (‘the Notice”) was issued on November 9, 2020 and announced that the Department... 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