How do I understand the tax table (tax rate, tax credit, and credit limit)?
The Tax Rate Table may be used for quick reference to find RITA municipality tax rates for both employment/activity city tax rates and resident individual tax rates. When utilizing the tax table for employment city or activity city reference (such as rental property, schedule C, etc.), only the tax rate column applies. A tax rate appears in the tax table with a decimal (such as .02, which equates to 2.0%). Example 1: An individual works in Bexley and earned $20,000 in gross wages. Their employer should withhold local tax to Bexley at the .02 tax rate. Bexley taxable wages of $20,000 x .02 tax rate = $400 tax that should be withheld to Bexley. Example 2: A Cleveland resident owns rental property located in Berea and has net rental income of $10,000. Berea rental income of $10,000 x .02 tax rate = $200 tax due to Berea. Example 3: A self-employed Cleveland resident earns $5,000 while working in South Euclid. $5,000 x .02 tax rate = $100 tax due to South Euclid When utilizing the tax tabl
