FAQs • Clayton, OH • CivicEngage

If I live in Clayton and work in another city that taxes my income aren’t I exempt from Clayton’s taxes? If so, why doesn’t it state that on the Declaration of Exemption?: No, you are not exempt. Effective January 1, 2016 the resident tax credit is reduced from 100% to 50%. 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.

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Tax Information

1. Who needs to fill out an Individual City Tax Form?: Every individual who is at least 18 years of age and who resides or works in Clayton must fill out and file an Individual City Tax Form by April 15th.

2. What if I am a business?: Every business entity that conducts business in Clayton must fill out and file a separate Business Income Tax Return by April 15. If you are on the payroll of the business or receive distributions that are deducted from net profits then you still must fill out and file a Business Income Tax Return to report the income received by you personally.

3. If I live in Clayton and work in another city that taxes my income aren’t I exempt from Clayton’s taxes? If so, why doesn’t it state that on the Declaration of Exemption?: No, you are not exempt. Effective January 1, 2016 the resident tax credit is reduced from 100% to 50%. 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.

4. Do I need to fill out an Individual City Tax form if I work or live in Clayton and my employer is withholding taxes for me?: Yes. We need both the taxpayer and the employer to provide this information to the city to accurately create taxpayer records and to make sure that you are getting proper credit for amounts withheld from your paycheck. Your employer will file a separate withholding return and you need to file an Individual City Tax form.

5. If my employer withholds Clayton taxes for me do I need to make a separate payment when I file an Individual Tax form?: Yes. Effective January 1, 2016 the resident tax credit is reduced from 100% to 50%. 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. Instruction on how to fill out the income tax forms can be found at Central Collection Agency (CCA) or by calling 937-227-1359.

6. Does the City have an income tax?: On May 6, 2003 Clayton voters overwhelmingly approved Issue 18, allowing the City to implement a 1.5% income tax (effective January 1, 2004).