Tax Structure and Incentives

Business Incentives

Depending on the size of investment, the City of Clayton can provide financial incentives such as property tax or income tax abatement for companies. In addition to those, below is a list of additional local economic development incentives available for new and retention/expansion projects within the boundaries of Clayton.

  • ED/GE Grant for infrastructure improvements
  • Micro Entrepreneur Grant
  • Enterprise Zone
  • TIF Districts
Clayton's staff is also ready to connect you to resources which can help your company grow by providing low interest loans and locating quality employees.

Staff can also provide you with access to more than 100 Business Resource Partners through the regional BusinessFirst! program. Contact us at (937) 836-3500 for more information.

Tax Structure 

Local Taxes

  • The City of Clayton income tax for those living and working in Clayton is 1.5%, however residents working outside the City, receive an resident tax reduction of 50% (0.75%).  Residents working outside the City and paying employment tax to another taxing community who estimate they will owe at least $200.00 in municipal tax (after subtracting withholding to the City and any credits), must file a declaration of estimated tax and make quarterly payments.
  • Montgomery County Sales and Use Tax - 7.5%
    • (Includes 5.5% State, 1.5% County, and 0.5% Transit)

Property Tax Rates

State of Ohio Taxes

Forms and Information