Ramaswamy Will Propose Ohio Tax Overhaul for 2026

Ohio voters face a choice between distinct tax strategies that will shape the future of income and property tax bills.

Updated on Oct. 4, 2026 in Taxes

Bold flat-color editorial illustration showing a stylized stone government portico and geometric residential blocks, symbolizing Ohio tax policy changes. — Republican gubernatorial nominee Vivek Ramaswamy has unveiled a proposal to phase out Ohio's individual income tax and reduce property taxes starting in 2026. AI Illustration. Upload story photo >

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Do you support eliminating state income taxes in exchange for potentially reduced local public service funding?

Republican gubernatorial nominee Vivek Ramaswamy is campaigning on a platform that includes phasing out the Ohio individual income tax and reducing property taxes. This proposal will be a central issue for voters in the gubernatorial election scheduled for November 3, 2026.

Why it matters

The proposed tax changes aim to attract business investment but raise concerns about potential revenue shortfalls for public services. Households must weigh these shifts against the future stability of local property taxes and public education funding.

Researchers project that 55.6% of the gains from eliminating capital gains taxes would benefit households earning over $1 million, compared to just 7.3% for residents earning less than $100,000. These tax shifts contrast with the $34.2 billion Ohio spent on Medicaid in fiscal year 2024.

The players

Vivek Ramaswamy

The Republican gubernatorial nominee who serves as the primary proponent of the proposed income and property tax restructuring.

Amy Acton

The Democratic gubernatorial nominee for the state of Ohio.

The details

The candidate intends to initiate the income tax phase-out by first eliminating capital gains taxes within the initial two-year state budget. Property tax rollbacks would aim to revert valuations to pre-pandemic levels while establishing caps on future growth. These policies aim to influence economic growth over an eight to 10-year period, though analysts caution that they could lead to significant revenue declines for state services.

Fiscal year 2024 saw Ohio Medicaid costs reach $34.2 billion.
The Ohio gubernatorial election takes place on November 3, 2026.

Money Landscape

This proposal marks a significant attempt to shift Ohio toward a tax model similar to those in states like Florida and Texas. The move follows a long-term trend of states experimenting with income tax phase-outs as a method for regional economic competition.

Voters should monitor how proposed property tax caps and income tax changes could impact their long-term household budgeting and tax liabilities. Discussing these potential shifts with a qualified tax professional can help you understand how changes to state tax code might alter your future financial planning.

The takeaway

The proposed tax shifts represent a significant pivot in state fiscal policy that may fundamentally alter future household tax obligations. Voters should review the specifics of their local property valuations and evaluate how potential changes to funding for public services could affect their community.