Ohio · 2027 and beyond
Ohio in 2027 and beyond: what is already law, and what is still open
No tax measure on the ballot. 2026 is the first year of the single 2.75% rate; indexing resumes in 2027. What is on the 2026 return, what starts with tax year 2027, and what is scheduled or conditional after that.
By Charles Trautman, EA, editor
Need to Know Tax · written from Ohio Department of Taxation sources and the unofficial November 3 election returns, November 12, 2026 · not yet reviewed by an Ohio practitioner
No tax measure on the ballot. 2026 is the first year of the single 2.75% rate; indexing resumes in 2027. This page keeps apart three things that get mixed together in the news: what is on the 2026 return you file in early 2027, what begins with tax year 2027, and what is scheduled, conditional or still undecided after that. Election figures are the unofficial November 3, 2026 returns and are not final until the state certifies them.
What the voters decided on November 3, 2026
No statewide tax measure was on the November 3, 2026 ballot in Ohio. Nothing voted on that day changes a Ohio return.
This return, next year, and later
| When | What applies |
|---|---|
| The 2026 return, filed in early 2027 | One rate, 2.75%, on nonbusiness income over $26,050. |
| Personal exemptions and the joint filing credit are lost at $500,000 of modified AGI, down from $750,000. | |
| Tips and overtime are taxed in full; the federal deductions never reach Ohio AGI. | |
| Two capital gains deductions written in 2021 begin, for certain Ohio venture investments and business sales. | |
| Starting with tax year 2027 | The $26,050 bracket line and the exemption amounts are indexed again. |
| A private retirement plan must withhold Ohio and school district tax at a retiree’s request. | |
| On property tax bills, the owner-occupancy credit keeps rising and the 10% non-business rollback keeps shrinking. | |
| 2028 and later, or conditional | The owner-occupancy credit reaches 15.38% and the non-business rollback is gone by 2029. |
| The petition to abolish property tax missed the 2026 ballot; its sponsors are aiming for November 2027. |
Items under 2027 and later do not change the 2026 return. They matter for 2027 withholding, estimated payments and planning. The detail behind each line is in the other Ohio articles.
The 2025 federal law and the Ohio return
Ohio is a static-conformity state, and Senate Bill 9 moved the date to March 5, 2026. Because the return starts from federal AGI, adopting the federal law changed nothing about the Ohio tax on tips, overtime or senior income.
That is the reason a change on the federal return, such as the deductions for tips, overtime and people 65 and older, may or may not show up on the Ohio return. The federal side is in The new deductions for tips, overtime and seniors.
What to watch
The 2027 budget bill, the first chance to change the rate again. When something on this page changes, the change is logged on the updates page with its date.
What to bring
- Your 2026 federal and Ohio returns, once filed, to set 2027 withholding and estimated payments against them
- Your last pay stub of 2026 and the first of 2027, to see whether withholding changed
- Any notice from the state about a 2027 rate, credit or filing change
Questions people ask
Does anything here change the Ohio return I file in early 2027?
Only what is listed under the 2026 return. Everything listed under 2027 or later affects withholding, estimated payments and planning, not the return for 2026.
How will I know if this page changes?
Every change is logged on the updates page with its date and the article it affects. State legislatures meet in early 2027 and some act before the filing deadline.
Ohio, after the election
No tax measure on the ballot. 2026 is the first year of the single 2.75% rate; indexing resumes in 2027.
Written by Charles Trautman, EA, editor · Need to Know Tax, Lone Tree, Colorado
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Sources and where to check
- Ohio Legislative Service Commission, HB 96 Tax Bill Analysis as Enacted (136th GA)
- Ohio Revised Code 5747.02, effective September 30, 2025
- Ohio Department of Taxation, Annual Tax Rates (2005 through 2025)
- Ohio Department of Taxation, What’s New (tax year 2025)
- Ohio Department of Taxation, Ohio Conformity Updates
- Ohio Department of Taxation, 2026 IT 1040 ES instructions
- Ohio Department of Taxation, FAQ: Homestead Means Testing