S.B. No. 327 Summary

• Repeals Ohio's state income tax on nonbusiness income beginning January 1, 2032, with a ten-year phase-out period from 2022-2031

• Maintains a 3% tax on business income indefinitely for individuals, while eliminating taxes on wages, salaries, investment income, and other nonbusiness income

• Adjusts tax brackets and rates annually from 2023-2031 to gradually reduce the nonbusiness income tax burden

• Modifies related statutes governing job creation tax credits, property tax relief, school funding calculations, and school district income taxes to reference business income instead of all income

• Eliminates the graduated tax structure for nonbusiness income after 2031, retaining only the flat 3% business income tax for individuals