Dayton income tax
Dayton levies 2.5% and credits 100% of the tax you pay to the city you work in, computed on at most 2.5% of wages.
| Rate | 2.5% |
|---|---|
| Credit factorshare of the work city's tax credited | 100% |
| Credit limitcap on wages the credit is computed against | 2.5% |
What a Dayton resident owes on $60,000
The work city withholds; Dayton then charges its own rate less the credit. The last column is what is usually not withheld from any paycheck.
| Work city | Withheld there | Credit | Owed to Dayton |
|---|---|---|---|
| Columbus2.5% | $1,500 | $1,500 | $0 |
| Cleveland2.5% | $1,500 | $1,500 | $0 |
| Findlay1% | $600 | $600 | $900 |
- The 2.5% is two levies (2.25% plus a 0.25% levy running 2025-2032), each with its own full-credit clause.
- No credit is given for school district income tax.
Source: City of Dayton — Income Tax Ordinance No. 32072-23, read 2026-08-22. School district income tax and JEDD/JEDZ levies are separate and are not modelled here.
Dayton income tax: common questions
What is the income tax rate in Dayton, Ohio?
2.5% on wages for 2026. Your employer withholds for the city you WORK in, so if you work elsewhere in Ohio you may owe Dayton a residual at filing time rather than nothing.
Does Dayton credit tax I paid to the city I work in?
Partly, and the two parameters matter separately. Dayton credits 100% of the tax paid to the work city, and computes that credit against at most 2.5% of your wages. Both have to be applied: the credit is 100% of the LESSER of what the work city took and 2.5% of wages.
Why do I owe Dayton money at filing time?
Because Ohio employers withhold for the WORK city, not the home city — ORC 718.03(A)(1). If Dayton's rate exceeds what its credit absorbs, the difference is owed directly to Dayton and is usually not withheld from any paycheck. That residual is what catches people out.