Akron, OH Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Current tax rate
- 2% of taxable income
- Entity classes
- individual, C corp, S corp, association
- Governing law
- Akron City Code §§ 99.02-99.03
- Administered by
- Tax Commissioner, Dept. of Finance
- Disputes heard by
- Board of Review (§99.16)
- Rate effective since
- calendar year 1982
Summary
Akron's municipal income tax, City Code § 99.02, sorts every taxpaying entity into one of several classes for the two-percent net-profits tax: individuals, C corporations, S corporations, and 'associations' (partnerships, LLCs, and other unincorporated enterprises with two or more owners). Which class a business falls into shapes how its net profits and gross income get computed and taxed under § 99.03.
"Business." An enterprise, activity, profession, public utility, public service, or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, partnership, association, C corporation, or other entity. "Association." A partnership, limited partnership, limited liability company, S corporation or any form of unincorporated enterprise, owned by two or more persons. "C corporation." A C corporation or joint stock association organized under the laws of the United States, the State of Ohio or any other state, territory, foreign country or dependency, but not including S corporations. "S Corporation." An association that has made an election under Subchapter S of Chapter 1 of Subtitle A of the Internal Revenue Code for its taxable year.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 64).
Full Breakdown
02 of Akron's income tax chapter defines 'business' broadly as any enterprise, activity, profession, public utility, public service, or undertaking conducted for profit or ordinarily conducted for profit, whether run by an individual, partnership, association, C corporation, or other entity. It then splits multi-owner and corporate filers into distinct classes: an 'association' is a partnership, limited partnership, limited liability company, S corporation, or any other form of unincorporated enterprise owned by two or more persons; a 'C corporation' is a corporation or joint stock association organized under United States, Ohio, or other state or foreign law that is not an S corporation; and an 'S Corporation' is an association that has made the federal Subchapter S election for its taxable year.
03 imposes an annual tax on all taxable income at rates that climbed from one percent in 1963-1969 to two percent 'during the calendar year thereafter,' the rate the code has carried since 1982, applying uniformly regardless of entity classification once income is sourced to the city. 04 then determines how much of a multi-location business's net profit has a taxable situs in Akron, using a three-factor formula, property, payroll, and gross receipts, when the taxpayer's own books do not clearly show the Akron-attributable share. 16 hears disputes.
Violations & Fines
Failing to register, file, or pay under this chapter draws interest and penalties assessed under § 99.13, and § 99.15 addresses violations of the income tax chapter; the Tax Commissioner pursues collection of unpaid taxes and issues refunds under § 99.14. Because the entity classification in § 99.02 drives how income is sourced and apportioned under §§ 99.03-99.04, misclassifying a business type on a return can misstate the tax owed and expose the filer to the same interest and penalty process as an underpayment.
Frequently Asked Questions
How is an LLC classified under Akron's income tax code?
What's Akron's current business income tax rate?
Does a C corporation and an S corporation pay the same way in Akron?
How does Akron figure out how much of a multi-city business's profit is taxable here?
Sources & Official References
Other rules in Akron
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