A pro-prosperity group wants the Ohio Senate to advance a measure to create a lower flat tax in the state.
Senate Bill 3 would lower the state’s personal income tax to 2.75% over two years, eliminating the state’s current progressive tax.
As proposed, the measure would reduce the top bracket rate for Ohioans making $102,400 or more to 3.125% from 3.5% for the 2025 taxable year. It would consolidate the two existing brackets by lowering the top tax rate to 2.75% for the 2026 taxable year.
“Ohio families need relief—cut the tax, not the paycheck,” Americans for Prosperity–Ohio State Director Donovan O’Neil said in a release. “By moving to a flat 2.75% income tax, Ohio can reward work, reduce government distortion in the tax code, and create a stronger foundation for growth.”
The group has launched a new statewide campaign, Save Our Salary, urging Buckeye State lawmakers to pass the tax. The group said the measure would simplify the Buckeye State’s tax system, increase Ohioans’ take-home pay, and position Ohio as a leader in pro-growth reform.
Ohio lawmakers first implemented a state income tax in 1971. State lawmakers said Ohio has been losing residents and political clout since then.
In prepared testimony to the Senate Ways and Means Committee, Ohio Sen. George Lang, R-West Chester, said Ohio had 21 electoral votes at the time. Since then, it’s dwindled to 17, and the state has “lost congressional representation in every census since.”
“If Ohio hopes to increase its congressional representation now and into the future, we need a way to level the playing field,” Lang said in his prepared remarks. “Senate Bill 3 aims to create a fair, tax-friendly competition, especially with those neighboring our State.
“Furthermore, as we have seen throughout history, as government lowers taxes, revenues increase,” Lang added. “This is evidenced by the fact that since the federal income tax was introduced in 1913, every time the federal government has raised tax rates, it has seen a decrease in revenue. And, every time it has lowered taxes, it has seen a rise in revenue.”
According to state Sen. Steve Huffman, R-Tipp City, several regional states have already implemented a flat tax, including Illinois (4.95%), Michigan (4.25%), Kentucky (4%), and Indiana (3.05%).
According to AFP-OH, since 2013, Ohio has reduced its personal income tax from nine brackets to just two. The group said that nine states nationwide have no income tax.
“Save Our Salary is more than a campaign—it’s a movement led by Ohioans who want to keep more of what they earn and chart a better path for our economy,” O’Neil said.
“Other states are flattening or eliminating income taxes,” O’Neil said. “Ohio must act boldly to stay competitive in job creation, wage growth, and business investment.”
In addition to the flat tax, AFP-OH wants renewed fiscal discipline in Columbus. Such an approach would include transparency in budgeting and smart limits on government growth.
The group has advocated for a state-level version of the Regulations from the Executive In Need Of Scrutiny (REINS) Act, which they said will give the state legislature more oversight over Ohio’s state agencies and increase transparency and accountability for taxpayers.
The push for reform comes as a new U.S. News & World Report ranking found Ohio is one of the worst states in the country. According to the list, the Buckeye State ranks as the 38th best state in the country, which was worse than a year ago, when Ohio ranked No. 36 in the analysis.
Ohio performed better in the opportunity and fiscal stability categories, ranking 17th and 25th, but ranked lowest in the economy and natural environment categories.
