- Vivek Ramaswamy proposes to phase out the state income tax in Ohio as a central campaign pledge.
- The plan begins by eliminating capital gains taxes before moving toward a complete zero-percent tax rate.
- Replacing the $10 billion annual revenue stream remains a major fiscal challenge for the 2026 gubernatorial race.
(OHIO) – Vivek Ramaswamy is campaigning on a plan to phase out the state income tax in Ohio, with what he has described as the end goal of a zero income tax rate.
Ramaswamy has said he wants to eliminate Ohio’s personal income tax over time rather than all at once. In public remarks, he said, “we need to get to a zero income tax rate.”
His campaign has also identified an opening step. On his campaign website, the proposal is framed as: “Phase out the state income tax, starting with eliminating capital gains taxes.”
The proposal remains a campaign pledge, not current Ohio policy. As of public reporting in 2026, Ramaswamy has continued to promote the idea as part of his gubernatorial platform.
That distinction is central to the debate around the plan. Ohio still collects personal income tax revenue, and the state’s income tax generates roughly $10 billion per year.
Removing that revenue stream would leave a large hole in the state budget unless Ohio replaced the money elsewhere or cut spending to match. Ramaswamy has said the state should reduce property taxes and cut spending he considers wasteful to help offset the loss.
His approach, as described in campaign statements, is gradual. He has not cast the proposal as an immediate repeal of the tax system, but as a phaseout that starts with eliminating capital gains taxes and moves toward a 0% rate.
That sequence matters for the politics and the math. A phased plan gives a candidate room to argue that tax cuts can arrive in steps, while state budget writers would still need to account for how each step affects revenue.
Ohio households could see tax savings over time if the state reduces or eventually eliminates the income tax. The scale of that benefit would depend on how much the tax falls and how quickly any change takes effect.
Any savings would sit alongside questions about what replaces the lost revenue. Ramaswamy has pointed to spending cuts, lower property taxes, and other changes to the state’s finances, but Ohio’s current income tax collections, roughly $10 billion annually, underscore the size of the tradeoff.
A push to phase out the state income tax also ties together several tax ideas that appeal to different groups of voters. A broader income-tax phaseout speaks to workers and retirees, while eliminating capital gains taxes singles out income from investments as the first target for relief.
At the same time, the proposal leaves open the question of which programs or spending lines would absorb the cuts needed to close the gap if revenue falls faster than economic growth or other collections rise. The campaign has said wasteful spending should be cut, and it has also called for lower property taxes.
Ramaswamy’s language has been direct. He has not described the plan as a minor rate adjustment, but as a path toward a zero income tax rate for the state.
That makes the proposal one of the clearest tax positions in his platform. It asks voters to weigh the appeal of lower income taxes against the cost of replacing a revenue source that now produces about $10 billion a year.
The next test will come in the governor’s race and in any legislative effort that follows. Budget offices and independent fiscal analysts are likely to draw close attention to whether a plan to phase out the state income tax, cut property taxes and begin by eliminating capital gains taxes can close the gap without shifting costs elsewhere.
