From Ohio 2.75% Flat Income Tax to United Airlines LA Route: Tax Simplification Benefits Higher Earners While Daily LAX Nonstop Strengthens West Coast Connectivity as Harrison West Airbnb-Eligible Home Demonstrates Short-Term Rental Income Strategy

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This week brings major tax policy changes affecting every Ohio household while airport connectivity keeps expanding to critical markets, plus a real example of how location creates income opportunities.

In today's newsletter:

• Flat Tax Reality: Ohio switched to 2.75% flat rate above $26K income (zero below) replacing old brackets, making budgeting simpler but benefiting higher earners more while city-district taxes still apply.

• United LA Route: Daily John Glenn-LAX nonstop starts March 29 connecting Columbus to West Coast innovation-capital hub, joining 2025 route explosion that ranked airport top-five U.S. growth.

• Airbnb Income Example: Harrison West 983 Michigan Avenue demonstrates how walkable locations near OSU-downtown generate short-term rental revenue year-round from games-festivals-events demand.

OHIO FLAT TAX HITS 2.75% ABOVE $26K — SIMPLER BUDGETING BUT HIGHER EARNERS WIN MORE

As of January 1, Ohio junked the old tiered system for a straightforward flat rate. Most non-business income above roughly $26K gets taxed at 2.75%. Below that threshold? Zero state income tax. Business income follows different rules with $250K exempt, then 3% kicks in. [Gagan Timsina]

How It Actually Works:

If you make $50K, you're paying 2.75% on about $24K of that (the amount over $26K). That's roughly $660 in state tax versus whatever the old bracket system would've charged.

Someone making $150K pays 2.75% on $124K, which runs about $3,410 annually. Under the old system with multiple brackets climbing as income rose, they might've paid more — but the difference shrinks as you move down the income scale.

The $26K floor is massive for lower-income households. A family making $25K pays zero state income tax, which is a real benefit when you're barely covering rent and groceries.

Business Income Gets Special Treatment:

First $250K of business income is completely exempt from state tax. Anything beyond that gets hit with 3%. So if you're a small business owner clearing $200K, you're paying zero Ohio state tax on that income. At $300K, you're only taxed on the $50K above the exemption.

This is clearly designed to encourage entrepreneurship and small business growth in Ohio. Whether it actually drives that behavior versus just being a nice perk for existing business owners is debatable.

The Upside:

Take-home pay becomes way more predictable. No surprise jumps when you get a raise that pushes you into a new bracket. Your effective tax rate basically locks in once you're above $26K.

Budgeting for a house down payment, retirement contributions, or investment accounts gets simpler when you know exactly what percentage of additional income goes to state taxes.

For middle-income households, this often means a modest tax cut compared to the old system. Not life-changing money, but enough to notice when you're planning major purchases.

The Tradeoff Nobody Wants to Say:

Flat taxes mathematically favor higher earners. Someone making $300K saves way more in absolute dollars than someone making $50K, even if the percentage is the same.

Lower earners who were in the lowest brackets before might actually see a slight increase or break-even situation once you account for how the old exemptions worked.

And here's the kicker: city and school district income taxes haven't changed. Columbus charges 2.5% city income tax. Lots of suburban districts add another 1-2%. So you're still potentially paying 5-7% total when you combine everything, which eats into whatever you saved at the state level.

Bottom Line:

The system is absolutely simpler, which has real value for financial planning. But calling it a win for everyone requires ignoring math. Your actual impact depends entirely on your income level, where you live, and what your city-district rates look like.

If you're clearing six figures, you probably came out ahead. If you're making $40K, the benefit exists but it's modest. If you're below $26K, the zero state tax is legitimately helpful.

This is not financial or tax advice — talk to your CPA about your specific situation before making any decisions based on the new structure.

UNITED ADDS DAILY COLUMBUS-LA NONSTOP — WEST COAST CONNECTIVITY JUMPS MARCH 29

United Airlines just announced daily nonstop service between John Glenn International and Los Angeles International starting March 29, 2026. This isn't just another flight — it's direct access to one of the country's biggest economic and innovation hubs. [Columbus Partnership]

Why LA Specifically Matters:

Los Angeles isn't just Hollywood and beaches. It's venture capital, entertainment industry deals, tech innovation, international trade through the port, and a gateway to Asia-Pacific markets. LAX ranks among the world's busiest international airports, which means this Columbus route connects you onward to Tokyo, Sydney, Hong Kong, Singapore.

For companies considering Columbus expansions, direct LA access means executives can attend West Coast meetings without burning entire days on connections. That friction reduction genuinely affects location decisions — nobody wants their leadership team wasting six hours in airports when they could be working.

Talent recruitment matters here too. Young professionals increasingly choose cities based on lifestyle access, and "I can get to LA in four hours for a weekend" beats "I need to connect through Chicago and hope weather cooperates."

The Bigger Airport Story:

Columbus ranked top-five among the 50 largest U.S. airports for scheduled flight increases in 2025. That's not an accident — it's sustained demand proving the market can support expanded service.

Last year added nonstops to Chicago, New York, Boston, Phoenix, Philadelphia, Atlanta, San Diego, Houston, Orlando, Miami, DC, and Toronto. 2026 brings LA plus Montreal, Austin, Fort Lauderdale, Panama City, and Key West.

United now connects Columbus to every single one of its U.S. hubs with this LA addition. That hub connectivity is huge because it means more potential connections if you need to reach secondary markets.

The $2B Terminal Context:

This route expansion is happening while Columbus pushes toward that new $2 billion terminal at John Glenn. The timing isn't coincidental — airlines commit to markets showing infrastructure investment and passenger growth.

The current terminal handles 9.2+ million passengers annually. The new facility is designed for significantly more capacity, which means the city can chase even more routes without hitting infrastructure constraints.

Real Impact:

If you're a Columbus business that needs regular LA meetings — tech startups pitching VCs, entertainment industry connections, manufacturing companies dealing with West Coast ports — you just got four-plus hours of your life back per trip by eliminating connections.

If you're considering relocating to Columbus from a coastal market, you keep reasonable access to friends, family, and professional networks on the West Coast without being completely cut off.

And frankly, it's just nice having the option. Weekend trips to California become feasible. Business opportunities you'd skip because of travel hassle become realistic.

This is the kind of infrastructure win that compounds over time as more companies and people discover Columbus offers better connectivity than they assumed.

HARRISON WEST AIRBNB EXAMPLE SHOWS HOW LOCATION CREATES INCOME — OSU-DOWNTOWN PROXIMITY DRIVES YEAR-ROUND DEMAND

983 Michigan Avenue in Harrison West demonstrates how walkable Columbus locations near OSU and downtown can generate actual short-term rental income, not just theoretical possibilities. Three bedrooms, two baths, basement, fenced yard, fireplace — but the location does the heavy lifting. [Gagan Timsina]

Why This Location Works:

Harrison West sits between OSU's campus energy and downtown Columbus, surrounded by cafés, boutiques, bars, and restaurants. You can walk to German Village, Short North, or campus depending on which direction you head.

That positioning captures multiple demand sources: OSU football weekends, graduation ceremonies, concerts at Nationwide Arena, festivals in Short North, business travelers visiting downtown offices, wedding guests who want walkable neighborhoods versus highway hotels.

The key insight: you're not relying on one seasonal spike. Year-round event calendar plus business travel means consistent booking potential versus vacation rental properties that sit empty nine months annually.

The Property Specs:

Three bedrooms and two full baths means you can sleep 6-8 people comfortably, which hits the sweet spot for group travel — families visiting OSU students, wedding parties, friend groups attending events.

Full basement adds flex space for storage, workout area, or just extra hangout room that makes the house feel bigger than square footage suggests.

Fenced backyard appeals to families with kids or dogs, plus creates outdoor entertaining space that hotel rooms obviously can't offer.

Fireplace and bright living spaces photograph well for listings, which matters more than people think when Airbnb guests are scrolling options.

The Income Strategy:

You've got three basic approaches here:

Owner-occupied with selective rental: Live there full-time, rent it during OSU home games, big downtown events, peak summer weekends. Maximizes your primary residence benefits while capturing high-demand dates that command premium nightly rates.

Full short-term rental: Commit to Airbnb year-round, manage bookings actively, potentially hire cleaning service. Higher income potential but requires treating it like a business, not just occasional side cash.

Hybrid seasonal: Live there most of the year, rent during September-November football season when demand peaks, plus selective high-value weekends. Balances lifestyle with income without full hospitality business commitment.

The Math Reality:

OSU home game weekends can command $400-800+ nightly depending on property quality and opponent drawing power. Seven home games times three nights (Friday-Sunday) at even $500 average nets $10,500 before expenses.

Add graduation weekends, March Madness if OSU's playing, random concerts and festivals, business travel during the week — you could realistically gross $20-30K+ annually if you're maximizing occupancy.

But subtract: mortgage, property tax, insurance, utilities, cleaning fees, Airbnb service charges, maintenance, occasional damage, income taxes on rental revenue. Net income depends entirely on how much you owe on the property and how actively you manage it.

What Makes This Different:

Most Airbnb advice focuses on beach towns or mountain cabins with obvious tourism appeal. This is urban short-term rental strategy where location proximity to year-round demand drivers creates consistent income versus seasonal gambling.

The "walkable" factor matters more than people realize. Guests researching Columbus actively filter for neighborhoods where they don't need rental cars. Harrison West, German Village, Short North, Victorian Village all win that search, which drives occupancy rates and nightly pricing power.

This isn't passive income — managing bookings, coordinating cleaning, handling guest issues, and maintaining property standards requires real work. But for someone willing to treat it semi-professionally, the income potential exists because the location fundamentally works.

The Bigger Point:

This property type demonstrates how Columbus real estate can generate income beyond traditional rent or appreciation. As the city grows and event calendar expands (hello, 2028 Olympics), walkable neighborhood properties near demand centers become increasingly valuable for short-term rental strategies.

Not every house works for this. Suburban three-bedroom ranches in Westerville? Probably not. But urban locations within walking distance of OSU, downtown, or entertainment districts? The market's already proven demand exists.

THIS WEEK'S WRAP-UP

Homeowners: Flat tax simplifies budgeting though benefits vary by income level, while LAX route adds West Coast connectivity that helps Columbus appeal for corporate relocations supporting property values.

Home buyers: Tax predictability makes financial planning easier for major purchases, airport expansion proves infrastructure investment is real, and Harrison West example shows certain locations create income opportunities beyond traditional ownership.

Investors: Higher earners got the best tax deal, airline route growth validates economic momentum attracting business investment, and walkable urban properties near OSU-downtown demonstrate short-term rental income potential if you're willing to manage actively.

Bottom line: Ohio simplified taxes but impact varies by income, Columbus keeps winning direct flights to major markets, and location-driven income strategies work if you pick the right neighborhoods and commit to execution.

[Schedule a call]

See you next week,

-Gagan