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Government and Politics


Income taxes go down, sales taxes go up statewide this weekend
A shift in the state budget kicks in this weekend.
by WKSU's STATEHOUSE BUREAU CHIEF KAREN KASLER


Reporter
Karen Kasler
 
In The Region:
Two big changes are coming to taxes in Ohio this weekend: the state sales tax goes up and the state’s personal income tax goes down. Ohio Public Radio’s Karen Kasler runs the numbers.
Income taxes go down, sales taxes go up statewide this weekend

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The income tax for individuals will drop by 8.5 percent, while the state sales tax increases from 5.5 percent to 5.75 percent.

Tax Commissioner Joe Testa says most people won’t notice the sales tax increase unless they’re making major taxable purchases, such as buying cars. But he says even then, it’s more than a wash. 

“The reduction in the personal income tax is certainly going to more than offset what you would pay typically in additional tax on the quarter-percent side.”

But Wendy Patton with the liberal-leaning think tank Policy Matters Ohio, says the income-tax drop is most likely too small to be noticed, but not the sales tax increase. 

“For people of low income, there’s an immediate notice of what the state’s sales tax adds to every purchase.”

And Patton says the changes make the tax code less fair.
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