Ohio income tax cut goes into effect Jan. 1

New Year’s Day brings a tax cut for Ohio residents.

Withholding rates for state income tax will be cut 4.2 percent for pay periods ending on or after Jan. 1.

The reduced withholding rate matches a cut in state income tax. They are part of a 21 percent income tax cut that was passed by the Ohio General Assembly in 2005. The phase in of the tax cut will be completed next year.

This year’s cut will increase the take-home pay of Ohioans by about $350 million during 2008, Tax Commissioner Richard A. Levin said.

Next year when the cuts are completed, a family of four earning $60,000 will save about $350 when compared with 2004 tax rates, officials said.

For more on this story, see Tuesday’s Vindicator or www.vindy.com.