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Dayton Ohio Income Tax Calculator

2.5% municipal income tax estimate for Dayton, Montgomery County (tax year 2026).

Your wages & city

Municipal tax usually applies to W-2 wages (often Box 5 Medicare wages). This tool does not compute federal or Ohio state tax.

Ohio residents owe tax to their home city, with credits for tax paid elsewhere on annual returns.

Leave blank if you live and work in the same city. When they differ, payroll often withholds the higher resident or work rate.

Local tax estimate

Taxable wages$60,000.00
Home cityDayton
Work city—
Withholding-style rate2.5%
Estimated local income tax$1,500.00

Effective rate 2.5% on wages shown. Annual-return credits between cities are not fully modelled.

What is Dayton local income tax?

Dayton levies a 2.5% tax on wages subject to the city code. On $60,000 entered above, the estimate is $1,500.00 — not counting Ohio state income tax or federal withholding.

City of Dayton income tax is filed separately from Ohio Form IT 1040. Ohio's paycheck model uses a 2.75% rate on taxable income above the zero bracket; Dayton's 2.5% line hits your W-2 local withholding instead.

Source: City of Dayton — 2.5% municipal income tax (2.25% base plus 0.25% continuation levy effective January 1, 2025) · City tax forms

Dayton commuter scenarios

Withholding often uses the higher of your home-city and work-city rates. These rows come from the same engine as the calculator above.

Dayton commute examples — engine output
ScenarioTaxable wagesApplied rateEstimated tax
Dayton resident, Dayton employer$75,0002.5%$1,875.00
Dayton resident, Cincinnati employer$75,0002.5%$1,875.00
Cincinnati resident, Dayton employer$75,0002.5%$1,875.00

Dayton tax examples

Dayton resident — engine output
Taxable wagesDayton taxEffective rate
$30,000$750.002.5%
$40,000$1,000.002.5%
$50,000$1,250.002.5%
$60,000$1,500.002.5%
$75,000$1,875.002.5%
$100,000$2,500.002.5%
$150,000$3,750.002.5%

Related calculators

Ohio paycheck calculator All Ohio local tax cities

Estimate only

Credits, estimated payments, and school district taxes are not fully modelled. Confirm with Dayton or your preparer.

Frequently Asked Questions

What is the Dayton Ohio income tax rate?
Dayton charges 2.5% on qualifying wages for residents and on income earned in the city. On $60,000, that is $1,500.00 in this calculator.
How do I calculate Dayton local income tax?
Multiply local-taxable wages by 2.5% for a resident who lives and works in Dayton. Commuters may see a different withholding rate if their work city charges more or less — use the work-city field on this page.
Is Dayton tax separate from Ohio state tax?
Yes. Ohio state income tax is handled on your state return and Ohio paycheck withholding. Dayton municipal tax is a separate city line. Combine both only on the full Ohio paycheck calculator if you want total take-home.
Do non-residents pay Dayton income tax?
If you work in Dayton but live elsewhere, you generally owe 2.5% on wages earned in the city. Residents can claim a credit for tax paid to other Ohio cities, capped at 2.5% on the annual return.
Where does Dayton publish its income tax rules?
See City of Dayton — 2.5% municipal income tax (2.25% base plus 0.25% continuation levy effective January 1, 2025). This page uses that published rate with last verified 2026-10-04.
How does this relate to my paycheck?
Employers withhold municipal tax based on your work and home addresses. This estimate helps you sanity-check Box 19 or local withholding before you file a city return.
Can I estimate commuting between two Ohio cities?
Yes. Set home to Dayton and pick a work municipality. The tool uses the higher resident or work rate for a withholding-style estimate.
Does this include school district tax?
Not automatically. If your school district levies a separate earned-income tax, add that rate through your employer or the Ohio paycheck calculator's local fields.
Does Dayton have a city income tax?
Yes. Dayton levies a municipal income tax on wages and other earned income under its city code (Ohio DOR code 5704). The current rate is 2.5% for tax year 2026.
Who pays Dayton income tax?
Dayton residents owe tax on income earned anywhere, with a credit for tax paid to other Ohio cities up to 2.5%. If you do not live in Dayton but work there, wages earned in the city are taxed at 2.5%.
Do I pay Dayton tax if I work in Dayton?
Wages from a Dayton employer are generally subject to Dayton's 2.5% rate even when you live outside the city. Your home city may still bill you if its rate is higher — this calculator's work-city field models that withholding shortcut.
What is the difference between Dayton and Ohio income tax?
Dayton municipal tax funds city services and is filed with the City of Dayton. Ohio state income tax is separate, collected by the Department of Taxation, and uses a flat 2.75% on taxable income above the zero bracket in our paycheck model. They show up as different lines on your pay stub.
Where can I find Dayton income tax forms?
Official forms and filing deadlines are on the City of Dayton site at https://www.daytonohio.gov/279/Tax-Forms.
How does Dayton income tax affect my paycheck?
Payroll typically withholds municipal tax using the higher of your resident and work-city rates. On $75,000 with a Dayton home and Cincinnati job, this model estimates $1,875.00 because Dayton's 2.5% exceeds Cincinnati's lower rate.

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⚠️ Disclaimer

This calculator provides estimates only. For personal financial advice, consult a licensed professional. Actual results may vary based on individual circumstances and current market conditions.