August 11, 2021
Ohio Department of Taxation releases revised income tax withholding tables for use with wages paid on and after September 1, 2021
The Ohio Department of Taxation has released revised income tax withholding tables that apply to wages paid on and after September 1, 2021 and through December 31, 2021.
The updated withholding tax tables and percentage method reflect legislation under H.B. 110, which, retroactive to January 1, 2021, reduces Ohio's individual income tax rates by 3%, eliminates the top income tax bracket for Ohio adjusted gross income (AGI) over $217,000, reduces the tax rate for Ohio AGI over $110,650 to 3.99%, and eliminates individual income tax for anyone with $25,000 or less in Ohio AGI. (See EY Tax Alert 2021-1322.)
Supplemental withholding rate
The supplemental rate of Ohio state income tax withholding on bonuses, commissions, and nonrecurring types of payments, or compensation is established by regulation at 3.5% and is not affected by the income tax changes under H.B. 110. (Ohio Administrative Code 5703-7-10, rev. 11-23-2018.)
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