Toledo levies a 2.5 percent income tax on residents and on net profits earned within city limits, administered by the Commissioner of Taxation under ORC Chapter 718 with quarterly filing for businesses.
Toledo imposes a 2.5 percent municipal income tax under TMC Chapter 1905 and ORC Chapter 718. Residents pay on all wages and self-employment income; non-residents pay on income earned at Toledo job sites. Businesses with a Toledo nexus, including Marathon Petroleum's refinery operations and Owens-Illinois headquarters, file the Net Profits return reporting income apportioned through the three-factor formula of property, payroll, and sales. Quarterly estimated payments are required when liability exceeds $200. The Regional Income Tax Agency, RITA, administers collection for Toledo. Residents who work in another taxing city receive partial credit for taxes paid elsewhere up to the 2.5 percent ceiling.
Late filings incur 10 percent penalties plus interest; willful failure to file is a first-degree misdemeanor; sustained noncompliance leads to property liens and wage garnishment through court order.
See how Toledo's business tax classification rules stack up against other locations.
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