Free college for all Ohio students, paid for by proposed new tax on the wealthy

COLUMBUS, Ohio (WOIO) - Two Ohio State Representatives introduced new legislation earlier this month that would use extra taxes collect from the wealthiest Ohioans to pay for free tuition for Ohio students at state colleges and universities.

House Bill 854 (HB 854), introduced by State Reps. Abdullahi (D-Columbus) and Tristan Rader (D-Lakewood), would add a tax to any Ohioan making more than $500,000 and any real estate sale of more than $2 million.

The new proposed taxes are as follows for 2025:

• 5.375% tax on any money earned over $500,000
• 7.375% tax and a $26,875 fee on any money made over $1 million

For 2026 and beyond the taxes are as follows:

• 5.75% tax on any money earned over $500,000
• 7.5% tax and a $28,750 fee on any money earned over $1 million

On any residential property sold for $2 million or more, there would be a 1% fee.

The two State Representatives point out New York, New Mexico, and Florida already have similar programs in place that have increased college enrollments.

“In one of the richest countries in the world, no one should experience such daunting financial barriers to receive a public higher education,” said Rep. Rader. “We have the resources to do it, we just need to direct them to support our students’ futures, not padding the pockets of millionaires.”

The bill has been assigned to the Workforce and Higher Education Committee but has yet to be assigned a hearing.