Dayton, Ohio municipal income tax

Tax year 2026 · collected by City of Dayton Division of Tax and Accounting

2.5%

Dayton taxes wages and net profits at 2.5%. The tax is administered by City of Dayton Division of Tax and Accounting. On $50,000 of wages earned in Dayton, that's $1,250 a year.

Tax rate

2.5%

Resident credit

100%

of tax paid to the work city

Credit limit

2.5%

of the wages taxed elsewhere

Population

136,688

Census estimate, 2025

What employers withhold

Ohio employers withhold municipal income tax for the city or village where the employee works. If an employee works in Dayton, withhold 2.5% of their qualifying wages for Dayton. Short stays in another municipality can be treated differently; check with the city tax office before you change withholding.

Dayton residents who pay tax to the city where they work get a credit of 100% of that tax, limited to 2.5% of the wages. If the credit doesn't fully cover Dayton's 2.5%, residents owe the difference, and some employers withhold it as a courtesy.

Details

2.5% = 2.25% (Ordinance 31288-14) plus 0.25% (Ordinance 32072-23, effective 2025-01-01, a continuation of an earlier 0.25% levy). effective_date reflects the current 0.25% ordinance.

Other self-collecting municipalities at 2.5%

Running payroll in Dayton, OH?

Sources

City of Dayton Department of Finance, Income Tax · data as of January 1, 2026 · last checked October 9, 2026

We copy figures from official sources and re-check them against the source before every update. See our methodology. This is general information, not legal advice.