Ohio has made the following changes to their tax laws regarding tax year 2025.
Ohio Income Tax Brackets
The highest tax rate has been reduced to 3.125%.
New in Credits
Home School Expense Credit - The credit for educational expenses related to home schooling has been changed from $250 per return to $250 per qualifying student.
Transformational Mixed-Use Development Credit - A new certificate-based credit is available related to transformational mixed-use development.
New in Deductions
Contributions to a Pregnancy Resource Center Deduction - A new deduction is available for contributions made to a qualifying pregnancy resource center.
Ohio Educator Expense Deduction - The deduction for educational expenses incurred by Ohio educators has been increase to $300 per taxpayer.
Ohio Nonresident Statement
Beginning with tax year 2025, Ohio will no longer be using Form IT-NRS. Individuals who meet the required criteria can claim Ohio's nonresident presumption b checking the Ohio nonresident statement box on either the Form IT-10 or IT-1040.