Ohio to Change Income Tax Withholding

Written by Zinner & Co. Tax Team | Dec 4, 2018 6:02:00 PM

Ohio Tax Commissioner Joe Testa has announced that effective January 1, 2019, there will be changes to the state’s income tax withholding tables. These changes will be the first to the state’s withholding amounts since 2015.

The new withholding rates are the result of a 6.3% tax cut that went into effect in 2015, but the tax withholding has never been adjusted to reflect the change. As an example, a worker with 3 dependents making $60,000 will see an additional $4.67 per year.

From a state budget perspective, the changes in withholding will be largely offset by the resulting change in tax refunds. However, these changes are expected to cause a one-time reduction in the general fund for 2019 of $147mm.

If you have questions about tax withholding, please contact your Zinner tax expert.

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