Frequently Asked Questions
Does the City of Troy impose a municipal income tax?
Yes. The City of Troy does impose a municipal income tax to provide revenue in support of municipal operations as authorized by Chapter 171 and subsequently amended. This tax was first adopted in 1967 and is imposed on the earnings of all residents and, as well, to nonresidents who work within the City of Troy. In addition, the tax is imposed on all businesses that operate within Troy, performing work and/or service within Troy, and on the net profit from all business activity from Corporations, S-Corps, Partnerships, LLCís and any other type of entity with nexus within the City of Troy. (Note: Single entity LLCís who file a Schedule C on their individual Federal Income Tax Return may also file reporting the Schedule C on their individual City of Troy Income Tax Return). Individuals who are Troy residents, but have pass-through income (with the exception of S-Corp income) must report the pass-through income on their individual income tax return (unless the entity files a Troy tax return reporting all income to Troy). If the pass-through income of a resident has been taxed at either the entity or pass-through level by another municipality, credit as provided by the Income Tax Ordinance will be allowed for tax paid on said pass-through income. S-Corporations will report Troy activity only on an entity level.
What is the current income tax rate?
The current City of Troy income tax rate is 1.75%.
Must I file an income tax return?
The City requires all individuals residing within the Municipality (mandatory filing provision for all residents) as well as each person engaged in business within the Municipality (regardless of residency) to file a tax return, regardless of whether or not tax is due.
I am a Troy resident who works outside the City of Troy. My employer withholds local income taxes from my pay. Do I still owe income taxes to the City of Troy?
The City allows credit for tax properly withheld for other city tax paid up to Troyís rate of 1.75%. If you work in a city with a tax rate of less than 1.75%, you will owe the City of Troy on the difference between the amount withheld and our rate of 1.75%. If you work in a city with a tax rate equal to or greater than 1.75%, and tax has been properly withheld, you will not owe the City of Troy additional tax on that income. As a resident, even if you do not owe tax to the City of Troy, you still must file an income tax return with the City of Troy.
Also, you will be required to file and pay quarterly estimated tax installments against any current year liability that you may owe during the current year on income subject to the Troy municipal tax. Please refer to the Income Tax Ordinance for assistance with estimated tax payments, or call our office for further instruction.
Where can I get income tax forms?
Income tax forms may be obtained by accessing them on this website. Forms are also available at City Hall, City of Troy, 100 S. Market St, Troy OH 45373.
Where do I file my income tax return?
Your City of Troy Income Tax Return can be filed with the Troy Income Tax Division, 100 S. Market St, Troy OH 45373.
Can someone assist me in completing my City of Troy Income Tax Return?
Yes! By simply bringing your income tax information to the Income Tax Division, 100 S. Market St, Troy OH 45373, the staff will complete your tax return for you. There is no charge for this service, and no appointment is necessary. Note: We cannot offer assistance with preparing your Federal or State tax returns. We recommend that you file early (prior to April 1) as there may be a substantial wait for assistance as the deadline approaches. You will need to bring all pertinent income tax records (W-2ís, 1099ís, copy of complete federal tax return) in order for us to properly and completely prepare your City of Troy tax return for you.
My spouse and I file separate federal tax returns. Do we need to file separate City of Troy Income Tax Returns?
A husband and wife may elect to file either separate Troy tax returns or file jointly, regardless of how they file their Federal and State income tax returns. The tax calculations will show the same result regardless of whether returns are filed separately or jointly.
What will happen if I donít file my income tax return or pay my balance due?
Failure to file a tax return and failure to pay the outstanding balance due are both violations of the Income Tax Ordinance of the City of Troy. In addition to penalty and interest assessments, criminal charges and/or civil judgment can be obtained in order to enforce the provisions of the Income Tax Ordinance.
I am starting a business in Troy. Where do I get information and forms for a business account?
To establish a business account and withholding account and to secure the necessary reporting forms, you may download the appropriate forms from this website for your initial filings of withholding tax, estimated tax due for business, or the business income tax return. In addition, you should also download and complete the Business / Withholding Questionnaire and remit for proper account set-up. You may also call our office at (937) 339-3861 and we can set up your accounts over the phone, or fax the necessary forms to you for you to complete.
For additional information and requirements, you may refer to the Income Tax Ordinance, found in a downloadable PDF format on this website. Click here to view the PDF version of the Ordinance.