Ohio just lowered your taxes! Here's how to check your paycheck

August always feels like a sprint: back-to-school runs, supply lists, and a million things to get done before fall settles in. But buried in all that busy-ness are a couple of Ohio-specific money moves that are easy to miss right now. Let's make sure you don't.

TIP 1: Your Ohio paycheck may already be bigger, did you notice?

As of August 1, Ohio updated its income tax withholding rates. That means your employer is now taking a little less state tax out of each paycheck, thanks to Ohio's move toward a lower, flatter income tax rate for 2026 (the top withholding rate dropped from 3.64% to 3.40%).

Here's what to do: Pull up your most recent pay stub and compare the "Ohio state tax" line to a stub from July. If the numbers look the same and your pay or hours haven't changed, your employer may not have updated their payroll system yet. That's worth a quick word with HR as you're entitled to the lower withholding starting now, not at tax time. And if you're self-employed or making estimated payments, it's a good moment to check whether your quarterly payments still make sense.

TIP 2: Ohio has money with your name on it — and a new deadline to claim it

Ohio is currently holding over $3 billion in unclaimed funds; forgotten bank accounts, old utility deposits, uncashed checks, and more. Chances are decent that something's waiting for you.

What's new this year: Ohio passed a law giving people 10 years from when funds are reported to claim them. That clock is running, and funds reported before January 1, 2016, must be claimed before January 1, 2036. That's not tomorrow, but it's not forever either.

Checking takes about two minutes. Go to unclaimedfunds.ohio.gov, type in your name, and see what comes up. Check under maiden names, former addresses, and deceased relatives too; estates can have unclaimed money as well. If you find something, the online claim process is straightforward. Smaller amounts are often approved automatically within days.

TIP 3: Back-to-school season — a few ways to stretch what's left in the budget

The Ohio Sales Tax Holiday came and went August 7–9 (hopefully you got a chance to take advantage!), but there are still ways to keep back-to-school spending in check.

Shop your house first. Before buying anything new, do a 15-minute sweep - last year's scissors, rulers, folders, and backpacks may be perfectly fine. Families often save $50 or more just from what's already on a shelf.

Keep your receipts. Ohio offers a homeschool expense credit of up to $250 per qualifying child, and teachers can deduct up to $300 in classroom supplies on their state return. It's easy to forget these at tax time if you don't save the receipts now.

Spread out the spending. You don't have to buy everything in week one. Staggering purchases through August and early September helps cash flow and gives you time to catch sales, especially on things like sports gear, winter coats, and heavier clothing.

That's what's on my radar this week. If any of this raises a question about your specific situation (your withholding, a found fund claim, or just your overall picture) I'm always happy to chat.

Just hit reply and let me know what's on your mind.

Talk soon,

Deb

DLouise Tax, LLC

dlouisebusiness.com