OHIO - As Ohio enters 2026, the state is rolling out a series of significant legislative updates that will impact everything from your take-home pay to your property tax bill. Following a year of intense debate in Columbus, several landmark shifts are officially taking effect on January 1st.
OHIO - As Ohio enters 2026, the state is rolling out a series of significant legislative updates that will impact everything from your take-home pay to your property tax bill. Following a year of intense debate in Columbus, several landmark shifts are officially taking effect on January 1st.Whether you are an hourly worker, a homeowner, or a veteran, here are five of the most impactful new laws and updates hitting the Buckeye State this New Year.
1. The 2026 Minimum Wage Increase
Following Ohio's constitutional mandate to adjust for inflation annually, the State minimum wage is set to increase this January.
- The New Rates: Starting January 1st, the minimum wage for non-tipped employees increases to $11.00 per hour.
- Tipped Employees: In the service industry, the tipped minimum wage rises to $5.50 per hour.
- Business Threshold: This state rate applies to businesses with annual gross receipts over $405,000. For smaller companies and workers aged 14 to 15, the rate remains tied to the federal minimum of $7.25.
2. Transition to a Flat-Rate Income Tax
In one of the most significant overhauls to the State tax code in decades, Ohio is officially consolidating its individual income tax brackets.
- The Shift: Starting with the 2026 tax year, Ohio is moving toward a flat-rate income tax system.
- The Benefit: The top marginal rate is being reduced to 2.75%, part of a broader legislative effort to make the state more economically competitive. This simplifies filing for millions of residents and ensures that more earnings stay in workers' pockets across all income levels.
3. Full Property Tax Exemption for 100% Disabled Veterans
A major victory for Ohio's veteran community takes effect this January through updated provisions in the state budget and related tax reforms.
- The Law: Veterans with a 100% service-connected disability rating from the VA will now be fully exempt from property taxes on their primary residence.
- Survivor Benefits: The law also extends this full exemption to the surviving spouse of a qualifying veteran, provided they do not remarry and continue to use the property as their primary home.
4. The "Second Amendment Financial Privacy Act" (SB 58)
Ohio is enacting new protections for firearm owners regarding their financial transactions. This law targets explicitly how banks and credit card companies categorize purchases.
- The Protection: Senate Bill 58 prohibits financial institutions from using a specific "merchant category code" to track or identify the purchase of firearms or ammunition.
- Privacy Rights: The law also bars state agencies and private entities from requiring individuals to pay a fee or maintain liability insurance solely for possessing a firearm.
5. Expansion of the Homestead Exemption
To combat the sting of rising property valuations, Ohio is implementing an expanded Homestead Exemption for the 2026 tax year.
- Inflation Tracking: For the first time, the Homestead Exemption (which reduces the taxable value of a home for seniors and people with disabilities) will be indexed to inflation.
- Income Limit Increase: The income threshold to qualify for this tax relief is also being adjusted upward, allowing more middle-income seniors to protect their homes from soaring property tax bills.
Looking Ahead: The 2026 Real Estate Market
Beyond these legislative changes, Ohio's housing market is showing signs of a "stabilization" trend. While prices are still expected to rise by a modest 2.2% statewide, experts forecast that mortgage rates will hold steady around 6.3%, providing more predictability for buyers entering
