On February 21, 2026, Ohio lawmakers introduced a comprehensive tax reform bill aimed at streamlining the state's taxation system and providing relief for residents and businesses. The proposed legislation, known as the Ohio Tax Modernization Act, is set to overhaul current tax laws in an effort to make the state's tax system more fair, efficient, and transparent.One of the key components of the bill is the simplification of the state's income tax structure. Under the proposed changes, Ohio would move from its current seven-tiered income tax brackets to a more streamlined, flat-rate system. This new system aims to reduce complexity and make it easier for taxpayers to understand and navigate their tax obligations.In addition to the income tax changes, the Ohio Tax Modernization Act also includes provisions to provide relief for small businesses. The bill proposes lowering the tax rate for small businesses and implementing additional tax incentives to encourage entrepreneurship and job creation in the state.Furthermore, the legislation seeks to modernize the state's tax code by incorporating digital services and e-commerce transactions into the tax base. With the increasing shift towards online shopping and digital services, Ohio aims to ensure that all taxable transactions are included in the state's revenue stream.Governor John Doe, a proponent of the tax reform bill, stated that the proposed changes are long overdue and will help Ohio remain competitive in today's rapidly evolving economic landscape. He emphasized the importance of creating a tax system that is fair for all residents and businesses while also promoting economic growth and innovation.The Ohio Tax Modernization Act is expected to undergo further review and debate in the state legislature before potentially being signed into law. Lawmakers are hopeful that the proposed reforms will bring about positive change for Ohio's tax system and benefit both taxpayers and the state as a whole.