The City of Dayton Income Tax Ordinance 31288-14 levies an annual income tax of two and one quarter percent (2.25%) and Ordinance 31501-16 levies an additional income tax of one-quarter percent (0.25%) effective January 1, 2017, for a total of two and one-half percent (2.5%).
This tax rate applies to salaries, wages, commissions, business income, rental income, and other compensation earned by residents of Dayton and by non-residents for work or services performed within the corporation limits of Dayton. Lottery, sweepstakes, gambling and sports winnings, winnings from other games of chance, and prizes and awards received by a resident regardless of where received or by a non-resident from an event occurring within the City are also taxable.
The municipal income tax rate also applies to employer withholding on qualifying wages of employees of businesses located within or doing business within the corporation limits of Dayton.
Credit for tax paid to other cities for residents of Dayton will remain at two and one-quarter percent (2.25%) for tax year 2016 and increase to two and one-half percent (2.5%) for tax years 2017 and beyond.
For additional information, please contact the City of Dayton Income Tax Customer Service line at 937-333-3500, and choose Option 2 when prompted.