Tax Rate and Tax Table FAQ's

  1. What are the tax rates for the RITA municipalities?

Use the Tax Rate Table to find the tax rate/ credit for any RITA municipality.

  1. How do I understand the tax table (tax rate, tax credit, and credit limit)?

The Tax Rate Table may be used for quick reference to find RITA municipality tax rates for both employment/activity city tax rates and resident individual tax rates. 

When utilizing the tax table for employment city or activity city reference (such as rental property, schedule C, etc.), only the tax rate column applies. A tax rate appears in the tax table with a decimal (such as .02, which equates to 2.0%).

Example 1: An individual works in Bexley and earned $20,000 in gross wages.  Their employer should withhold local tax to Bexley at the .02 tax rate.  Bexley taxable wages of $20,000 x .02 tax rate = $400 tax that should be withheld to Bexley.

Example 2: A Cleveland resident owns rental property located in Berea and has net rental income of $10,000.  Berea rental income of $10,000 x .02 tax rate = $200 tax due to Berea.

Example 3: A self-employed Cleveland resident earns $5,000 while working in South Euclid.  $5,000 x .02 tax rate = $100 tax due to South Euclid

When utilizing the tax table for resident individual purposes, then all columns (tax rate, tax credit, and credit limit) apply. 

The tax rate is a resident individual’s total local tax obligation as a resident of the selected city.  A tax rate appears in the tax table with a decimal (such as .02, which equates to 2.0%)

Example: A Bexley resident earned $80,000 in gross W-2 wages from two (2) separate employers. Therefore, this Bexley resident’s total local taxable wages are $80,000 x .02 Bexley tax rate = $1,600 total local tax obligation as a Bexley resident. 

The credit limit (as shown in the tax table) is the maximum rate that will be recognized or the limit of credit that will be given by your city of residence for the tax due or withheld for the city you worked or earned income in. Tax withheld in excess of a city’s applicable tax rate will not be recognized by your city of residence.  In the event tax was withheld in excess of a city’s applicable tax rate, a refund request may be submitted to the city to which the tax was paid.  The credit limit is only applicable when tax is withheld or paid to a city other than your residence. Full credit is given for any tax paid or withheld for your resident city.  

If your wages or income were taxed by a city other than your residence, then the credit limit applies. You can only claim the actual tax paid or withheld UP TO the credit limit stated. Example: if the credit limit is 2% for your resident city, but you paid 1% to the city you worked in, you can only claim 1% being paid. Also if no tax was withheld or paid, no credit will be given.

  1. What is a residence or courtesy tax withholding?

This is simply the tax amount that an employer is withholding on your behalf to your city of residence because: 1) you work in a city where the employment city tax rate is less than your total local tax obligation to your city of residence and/or 2) your city of residence credit limit rate (the maximum tax rate that will be recognized) is less than the employment city tax rate and/or 3) your city of residence has a reduced tax credit percentage (less than 1.0 or 100%). You can also calculate this using the Rita Matrix. 

  1. What is a residence or courtesy tax rate?

A residence or courtesy tax rate is simply the percentage of local tax that your employer has been requested to withhold on your gross wages in order to satisfy your residence city total local taxable obligation (percentage). To calculate this percentage you or your employer may use the Rita Matrix.

Please note that the residence/courtesy tax rate will vary based upon the employment city tax rate and the tax rate, tax credit, and credit limit of an individual’s city of residence, therefore please contact RITA or use the Rita Matrix to confirm the applicable residence/courtesy tax rate.

  1. What is an alternate tax?

The terms alternate tax, residence tax and courtesy tax withholding are often used interchangeably.

  1. Where can I find non-RITA city tax rates?

Tax rates for non-RITA cities can be obtained a number of ways. A:  If you utilize the Autocalc Individual Tax Form or E-File with RITA, non-RITA city tax rates will be applied automatically in the calculation of your return.  B: You may contact that particular city directly. C: As a public service, the City of Columbus Income Tax Division provides a municipality list that can be searched.  Go to www.columbustax.net and click on the Tax Municipalities selection.