HB 639 Summary

• Phases out Ohio's individual income tax over 10 years, reducing tax rates annually from 2014-2024, with no tax due for taxable years beginning in 2024 or thereafter.

• Phases out the pass-through entity withholding tax from 5% in 2014 to 0% beginning in 2024, matching the timeline for individual income tax elimination.

• Limits income tax expenditures (credits, deductions, exemptions) to declining percentages annually from 2015-2023, reducing from 90% in 2015 to 10% in 2023, then eliminated in 2024.

• Includes detailed progressive tax rate schedules for each year 2004-2023 showing decreasing tax obligations, with specific rates applied to different income brackets.

• Adjusts income thresholds annually based on gross domestic product deflator to account for inflation, rounding adjustments to the nearest $50.