Lorain, Ohio municipal income tax

Tax year 2026 · collected by City of Lorain Income Tax Department

2.5%

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

Tax rate

2.5%

Resident credit

80%

of tax paid to the work city

Credit limit

of the wages taxed elsewhere

Population

65,366

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 Lorain, withhold 2.5% of their qualifying wages for Lorain. Short stays in another municipality can be treated differently; check with the city tax office before you change withholding.

Lorain residents who pay tax to the city where they work get a credit of 80% of that tax, limited to 2% of the wages. If the credit doesn't fully cover Lorain's 2.5%, residents owe the difference, and some employers withhold it as a courtesy.

Other self-collecting municipalities at 2.5%

Running payroll in Lorain, OH?

Sources

City of Lorain Treasurer & Income Tax Department · 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.