Capital gains: Taxed as ordinary income (municipal income taxes also apply).
What changed: Moved to a flat 2.75% on nonbusiness income over $26,050 on Jan. 1, 2026 (HB96); personal exemptions and joint filing credit limited to MAGI of $500,000 or less.
| January 1, 2026 | Ohio moves to a flat 2.75% income tax (HB96) A single 2.75% rate on nonbusiness income over $26,050 replaces the 3.125% top rate. Personal exemptions and the joint filing credit are now limited to MAGI of $500,000 or less. | In effect |
Eight states cut individual income tax rates for 2026 while New York extends its temporary surtaxes on high earners, reshaping the state bill for affluent households and anyone weighing a move.