Medina, OH Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Tax rate
- 1.25% on net profit and wages
- Effective date
- January 1, 2024, Ordinance 203-23
- Apportionment
- Three-factor: property, payroll, gross receipts
- Individual filers
- Taxed separately under § 162.04
- Alternative method request
- Must be in writing with return
- First filing offense
- Third-degree misdemeanor under § 162.99(D)
- Withholding violation
- Up to $1,000 fine, 6 months jail
Summary
Medina taxes businesses differently than wage earners under its 2024 municipal income tax code. Medina Codified Ordinances § 162.061 classifies any taxpayer that is not an individual as a net-profit filer, while § 162.062 applies a three-factor apportionment formula, property, payroll, and gross receipts, to businesses operating both inside and outside the City at the 1.25% rate set in § 162.013.
"Municipal Taxable Income" for a taxpayer who is not an individual for the Municipality is calculated as follows: (A) "Income" reduced by "Exempt Income" to the extent otherwise included in income, multiplied by apportionment, further reduced by any "Pre-2017 Net Operating Loss Carryforward" equals "Municipal Taxable Income." (1) "Income" for a taxpayer that is not an individual means the "Net Profit" of the taxpayer. ... This section applies to any taxpayer engaged in a business or profession in the Municipality unless the taxpayer is an individual who resides in the Municipality or the taxpayer is an electric company, combined company, or telephone company that is subject to and required to file reports under Chapter 5745 of the Ohio Revised Code.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: 2025-01: Local legislation current through June 24, 2025 | State legislation current through December 31, 2024).
Full Breakdown
Chapter 162, effective January 1, 2024 under Ordinance 203-23, separates individual wage earners from business taxpayers for municipal income tax purposes. 061 defines "Municipal Taxable Income" for any taxpayer that is not an individual, meaning a corporation, partnership, or other business entity, as its net profit reduced by exempt income, multiplied by an apportionment percentage, and further reduced by any pre-2017 net operating loss carryforward. 04, and except electric, combined, or telephone companies that already file reports under Ohio Revised Code Chapter 5745. For everyone else, net profit earned both inside and outside Medina is apportioned using a three-factor formula: the average original cost of real and tangible personal property used in Medina versus everywhere; wages and compensation paid for services performed in Medina versus everywhere; and gross receipts from sales, rentals, and services in Medina versus everywhere. 19. 013, the same rate that applies to individual wage income.
Violations & Fines
General violations of Chapter 162, including failing to file a return, filing an incomplete return, or willfully refusing to pay tax owed, are misdemeanors under § 162.99(D): a third-degree misdemeanor on a first offense, rising to a second-degree misdemeanor on a repeat offense within a year, and a first-degree misdemeanor on any further offense within that year. An employer that fails to remit withheld municipal income tax faces a first-degree misdemeanor, up to a $1,000 fine, up to six months in jail, and possible dismissal from office or discharge from employment under § 162.99(A).
Frequently Asked Questions
How does Medina tax businesses differently from individual residents?
How does Medina apportion the income of a business operating both inside and outside the City?
Can a business ask Medina to use a different apportionment method?
What happens if a business does not file or pay Medina's net profit tax?
Sources & Official References
Other rules in Medina
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