Lakewood income tax
Lakewood levies 1.5% and credits 50% of the tax you pay to the city you work in, computed on at most 1% of wages.
| Rate | 1.5% |
|---|---|
| Credit factorshare of the work city's tax credited | 50% |
| Credit limitcap on wages the credit is computed against | 1% |
What a Lakewood resident owes on $60,000
The work city withholds; Lakewood 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 Lakewood |
|---|---|---|---|
| Columbus2.5% | $1,500 | $300 | $600 |
| Cleveland2.5% | $1,500 | $300 | $600 |
| Findlay1% | $600 | $300 | $600 |
- Lakewood's own FAQ advertises "a credit of .5%", which reads like a 100% factor capped at 0.5%. The L-1 instructions show the real mechanic: 50% x min(tax paid, 1% of wages). The two formulations diverge whenever the work city's rate is below 1%.
Source: City of Lakewood — 2025 Form L-1 instructions, read 2026-08-22. School district income tax and JEDD/JEDZ levies are separate and are not modelled here.
Lakewood income tax: common questions
What is the income tax rate in Lakewood, Ohio?
1.5% on wages for 2026. Your employer withholds for the city you WORK in, so if you work elsewhere in Ohio you may owe Lakewood a residual at filing time rather than nothing.
Does Lakewood credit tax I paid to the city I work in?
Partly, and the two parameters matter separately. Lakewood credits 50% of the tax paid to the work city, and computes that credit against at most 1% of your wages. Both have to be applied: the credit is 50% of the LESSER of what the work city took and 1% of wages.
Why do I owe Lakewood money at filing time?
Because Ohio employers withhold for the WORK city, not the home city — ORC 718.03(A)(1). If Lakewood's rate exceeds what its credit absorbs, the difference is owed directly to Lakewood and is usually not withheld from any paycheck. That residual is what catches people out.