Due Dates

Frequently Asked Questions

What is the city of Toledo income tax rate and what type of income is taxable?

The Toledo’s income tax rate is 2.25%. Generally, an individual’s gross income (including income which is deferred) and a business’s net profits are taxable. For employees, Toledo income tax is based on gross income (normally Box 5 of the W-2). Business and partnership income tax is based on the “Net Profit”.

All Taxable Income

Is it possible to file my Toledo income tax returns online?

If your Toledo account number ends with a “-R”, you can use our Authority TaxConnect.

If your Toledo account number ends with a “-B”, and you are filing as an individual, please contact our office for assistance.

Partnerships and Corporations can be filed electronically through the Ohio Business Gateway using the “Municipal Net Profit Tax” option.

I am a Toledo resident and work in an area with no municipal tax or where the tax withheld is lower than Toledo’s 2.25% rate. When do I pay Toledo the income tax/difference that is due them?

Any taxpayer having or anticipating an annual tax liability to the city of Toledo exceeding $200 shall file a declaration of estimated tax and pay the estimated tax due in quarterly installments. Complete the appropriate Estimated Toledo Tax Form (above) D-1 for each quarterly payment.

Individuals (W-2, W-2G, Federal Form 1041, Federal Schedule C, E, & F filers) must have 90% of the tax liability paid by January 15th or the next business day if the due date falls on a weekend or holiday. To avoid penalty and interest assessments for underpayment of estimated taxes, we require at least 90% of the final tax due Toledo or 100% of the prior year liability (if the previous year’s liability was filed and was not zero) be remitted to the city so that by January 15th, 90% of the tax liability is paid.

Businesses (1065, 1120, 1120S, 1120REIT filers) must have 90% of the tax liability paid by December 15th or the next business day if the due date falls on a weekend or holiday. To avoid penalty and interest assessments for underpayment of estimated taxes, we require at least 90% of the final tax due Toledo or 100% of the prior year liability (if the previous year’s liability was filed and was not zero) be remitted to the city so that by December 15th, 90% of the tax liability is paid.

How do I find my city of Toledo account number?

If you do not have, or do not know your City of Toledo assigned account number, please call 419-245-1662 and leave a message. A representative will contact you within 24 hours to assist you in obtaining your Toledo account number.

Withholding

Any taxes withheld by an employer are held in trust. It is illegal to withhold any sum and not forward it to the Income Tax Division as is required by the Toledo Municipal Code. Businesses must remit taxes monthly or quarterly, depending on the amount withheld. If withholding more than $2,399 or greater in the prior calendar year or $200 or more in any month of the prior calendar quarter the withholding must be remitted monthly (due by the 15th of the following month); otherwise, quarterly filing with due dates of April 30, July 31, October 31 and January 31 are required. If an employer is required to remit electronically for Federal tax purposes they must file and pay electronically for Toledo. This can be done via ACH credit or via Ohio Business Gateway.

Are gambling winnings taxable?

Yes. Gambling winnings, including lottery winnings, are taxable to the City of Toledo. Gambling losses are not deductible against gambling winnings unless the taxpayer is deemed to be a “professional gambler,” where gambling is the taxpayer’s primary business activity for federal tax purposes. Gambling losses are not deductible against any taxable income. For Tax Years 2015 and prior, there is an annual $2,500 exemption for gambling and lottery income, and this deduction can be taken on Line 8 of the Toledo tax return. Beginning in Tax Year 2016, the $2,500 exemption has been eliminated.

Extensions

In order to receive consideration for your extension, a copy of the federal extension must accompany your Toledo tax return. The extended date is the same as for the approved IRS extension. An extension is an extension to file and not an extension to pay. Your tax payment will be due on the original due date of the return. Business and Individual Extension Vouchers (only if payment is necessary) are available on our website.

Contractors (building trades)

All contractors must be registered with the city’s Income Tax Division before performing work in the city. Many are also required to obtain a Certificate of Compliance before building permits or licenses can be issued (See Section 798.01 of the Toledo Municipal Code). A $250 tax deposit must be made at the time of registration.

Can we file a joint Toledo tax return?

Yes. Beginning with tax year 2016, the State of Ohio mandates that we allow joint filing. For tax years 2015 and earlier, individuals who are required to file must file separately.

Is there an age limit for individuals subject to Toledo income tax?

No. All residents and non-residents working in Toledo who have earned income are subject to the 2.25% City of Toledo income tax regardless of age.

Early Retirement/Separation Payouts

Regardless of the terminology assigned to the payout (e.g. retirement incentive, separation pay, termination pay, etc.) the payout is taxable if the recipient was employed within the City of Toledo at the time of retirement. The residence of the individual at the time of payout has no bearing on the tax-ability of the payout.

1099s

The Toledo Income Tax Division requires businesses and individual sole proprietors to file copies of the 1099-MISC that they issue for their contract labor. 1099-MISC should be filed along with the business or individual Toledo tax return.

If an individual files late, is there a penalty?

Yes. Tax Year 2016 and future, there is a late filing fee of $25 per month or portion thereof for a maximum of 6 months ($150). Interest for the year is based on the Federal Short Term Rate as of July of the prior year rounded to the nearest whole percent, plus 5%, thus the rate will change for each succeeding year based on the Federal rate of the previous July. The rate will be posted in October for the upcoming year. Tax Years 2015 and prior, there is penalty and interest for late returns that have a tax liability due. The penalty is 5% of the balance of the unpaid tax for each of the first five months or portion thereof of delinquency and 1.5% for each month or portion thereof thereafter on the unpaid balance of the tax. The interest is .5% per month for each month or portion thereof of delinquency on the unpaid balance of the tax.

Where can I find a copy of the Toledo Income Tax Ordinance?

The City of Toledo Municipal Code's Chapter 1905 covers income tax.

Penalties and Interest

Tax Years 2018 to Present

Interest

Interest for the year is based on the Federal Short Term Rate as of July of the prior year rounded to the nearest whole percent, plus 5%, thus the rate will change for each succeeding year based on the Federal rate of the previous July. The rate will be posted in October for the upcoming year.

2018 interest rate is 6%.

2019 interest rate is 7%.

2020 interest rate is 7%.

Penalty

Withholding
50% of the amount not timely paid (a one-time charge) on each occurrence.

Net Profit Returns
15% of the amount not timely paid (this is a one-time charge) on each occurrence.

Underpayment of Estimates
Find corresponding 2210 Form for specific tax year above.

Penalty for failure to file timely
Except for estimate payments - Failure to file any withholding monthly, quarterly or W-3 form and any net profit tax return, will be charged a $25 charge for each month or fraction thereof that the return remains unfiled not to exceed $150 for each such failure. This penalty was effective as of 1/1/2016.