Canton, OH Local Taxes & Fees: Business Tax Classification (2026)

Under Canton Codified Ordinances Chapter 182, the Canton Income Tax Director administers two separate income tax bases: section 182.04 taxes individuals on their earned and net income, while section 182.06 and section 182.061 govern "taxpayers who are not individuals," meaning corporations, partnerships and other businesses. For these business filers, Municipal Taxable Income equals Income (the taxpayer's Net Profit as defined in section 182.03(W)) reduced by Exempt Income under section 182.03(K), multiplied by an apportionment percentage, and further reduced by any Pre-2017 Net Operating Loss Carryforward under section 182.03(FF).

The apportionment percentage itself is set by section 182.062, a three-factor formula averaging the ratio of Canton property, Canton payroll, and Canton gross receipts against the taxpayer's totals everywhere the business operates; leased property counts at eight times its annual rental value. A business that believes the standard three factors misstate its Canton activity may request an alternative method, such as separate accounting or dropping a factor, in writing with its return or an appeal, and the Income Tax Director may likewise compel a different method by assessment issued within the period fixed by section 182.19.

The tax itself is levied under section 182.012 at 2.5% per year, effective July 1, 2018 under Ordinance 128-2018, up from the 2% rate that applied from October 1, 1982. Businesses report through the same annual return process as individuals under section 182.09 and may claim credit for net profit tax already paid to another municipality under section 182.08. The Income Tax Director enforces the classification, and every provision of Chapter 182 traces its authority to Article XVIII, Section 3 of the Ohio Constitution and Ohio Revised Code Chapter 718.