How do city and local taxes work in Ohio?
In Ohio, city taxes are paid first where the employee works. Then, if the city in which the employee lives has a higher tax rate, the tax to the live city is the difference between the live city rate and the work city rate. For example, if an employee works in Kettering (1.75%), and lives in Dayton (2.25%), the tax would be 1.75% for Kettering and .50% for Dayton. There are some exceptions. For example, Xenia requires that residents of Xenia pay .25% to Xenia, even if the employee works in a city like Dayton that has a higher tax rate. In addition to all of this, many school districts have a tax that is based solely on where the employee lives.
Related Questions
- I paid local taxes to a non-RITA city. How do I report those tax payments on the RITA Form 37 and do I need to attach a copy of the other city (ies) returns to receive credit?
- I paid local taxes to a non-RITA city. How do I report those tax payments on the RITA Form 37 and do I need to attach a copy of the other city(ies) returns to receive credit?
- How do city and local taxes work in Ohio?
