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Toledo Ohio Income Tax Calculator

2.5% municipal income tax estimate for Toledo, Lucas 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 cityToledo
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 Toledo local income tax?

Toledo 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 Toledo 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; Toledo's 2.5% line hits your W-2 local withholding instead.

Source: City of Toledo — 2.5% municipal income tax (2.25% base plus 0.25% road improvement levy, 2025–2028) · City tax forms

Toledo 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.

Toledo commute examples — engine output
ScenarioTaxable wagesApplied rateEstimated tax
Toledo resident, Toledo employer$75,0002.5%$1,875.00
Toledo resident, Detroit-area commute (no OH work city)$75,0002.5%$1,875.00
Columbus resident, Toledo employer$75,0002.5%$1,875.00

Toledo tax examples

Toledo resident — engine output
Taxable wagesToledo 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 Toledo or your preparer.

Frequently Asked Questions

What is the Toledo Ohio income tax rate?
Toledo 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 Toledo local income tax?
Multiply local-taxable wages by 2.5% for a resident who lives and works in Toledo. Commuters may see a different withholding rate if their work city charges more or less — use the work-city field on this page.
Is Toledo tax separate from Ohio state tax?
Yes. Ohio state income tax is handled on your state return and Ohio paycheck withholding. Toledo 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 Toledo income tax?
If you work in Toledo 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 Toledo publish its income tax rules?
See City of Toledo — 2.5% municipal income tax (2.25% base plus 0.25% road improvement levy, 2025–2028). 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 Toledo 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 Toledo have a city income tax?
Yes. Toledo levies a 2.5% municipal income tax on gross wages for residents and on income earned in the city (Ohio DOR code 7502).
Who pays Toledo income tax?
Toledo residents owe tax on income earned anywhere, with a credit for tax paid to other Ohio municipalities up to 2.5%. Non-residents who work in Toledo generally pay 2.5% on wages earned inside the city.
Do I pay Toledo tax if I work in Toledo?
If your job is inside Toledo city limits, payroll usually withholds Toledo's 2.5% on those wages even when you live in a suburb. On $75,000 earned in Toledo, that is $1,875.00 when Columbus is your home city (2.5% work rate applies).
What is the difference between Toledo and Ohio income tax?
Toledo municipal tax is filed with the City of Toledo and funds local services. 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 Toledo income tax forms?
Official forms and filing deadlines are on the City of Toledo site at https://toledo.oh.gov/pay-taxes.
What is the Toledo income tax department?
The City of Toledo collects its own municipal income tax. Filing help, FAQs, and payment options are published at https://toledo.oh.gov/pay-taxes/faq.
How does Toledo income tax affect my paycheck?
Employers often use W-2 Box 5 (Medicare wages) as the local base. A Toledo resident earning $75,000 with no higher-rate work city sees about $1,875.00 in municipal withholding in this model.

verifiedOfficial Sources

⚠️ 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.