Ohio workers should start seeing more in their paychecks

Taxes going up and coming down beginning Sept. 1, 2013.

Employers will begin using a new withholding rate for their employees' payrolls in the coming weeks, thanks to lower income tax rates for Ohioans.

The lower income tax rate is part of a tax reform package signed by Gov. John Kasich earlier this summer. The rate will be further cut in 2014, and in 2015 when it will reach 10-percent. Taxes for small businesses will also be cut by 50-percent.

"The sooner these lower tax rates are applied, the sooner Ohio workers will see the dollars-and-cents benefit of this tax cut," said Ohio Tax Commissioner Joe Testa. READ: Ohio's newly-approved two-year state budget tax law changes

It's not all good news, though. The income tax break comes as the state's sales tax increases by one-quarter of a percent to 5.75% on Sept. 1. READ MORE

Employers should begin deducting 8.5-percent less in state income tax from paychecks beginning Sept. 1. An additional 0.5-percent rate decrease will take effect at the beginning of 2014.

"This tax cut and the governor's full package of comprehensive tax reforms are designed to get Ohio back on track by strengthening our competiveness for jobs and economic development," Testa said.