Income Tax

The City of Chardon has a 2% income tax which is due from anyone, 18 years of age or older, who lives or works in the city and earns wages. However, a credit of up to 50% of the tax burden is available to city residents who pay a local income tax in another municipality.

The City has mandatory filing; therefore, all residents, 18 years of age or older, must file a return or exemption certificate regardless of income. This includes retired persons, welfare recipients, etc. Similar to federal and state taxes, returns or exemptions must be filed on or before April 15 of each year whether or not tax is due.

Regional Income Tax Agency (RITA)

The City partners with the Regional Income Tax Agency (RITA) for collection of our municipal income tax. All tax returns, quarterly estimates, withholdings, and any other forms or payments should be sent to RITA. Visit the RITA website at ritaohio.com to print forms, find instructions, or to file online. Call RITA at 800-860-7482 for more information or assistance. An automated system is available 24/7, or you can speak to an agent in their Brecksville office during regular business hours.

What qualifies as taxable income?

Municipal (i.e., city) income taxes in Ohio tax a much smaller number of income sources than Federal or State income taxes. Below are lists of taxable and non-taxable income sources. The following list is not all-inclusive and only includes the most common types of taxable income. For more details please visit RITA here: https://www.ritaohio.com/individuals/Faqs.

Taxable

  • Wages, salaries, and other compensation. (Including Paid-Time Off, bonus, stipends, uniform, automobile, and travel allowances, and tips.)
  • Commissions, fees, and other earned income. (Including Fiduciary, director, and executor fees.)
  • * Stock options (taxed when exercised).
  • Severance pay.
  • Employee contributions to retirement plans and tax-deferred annuity plans (including Sec. 401k, Sec. 403b, Sec. 457b, etc.).
  • * Any amount attributable to a non-qualified deferred compensation plan included in qualified wages.
  • Self-employment income (Schedule C).
  • * Income from pass-through entities, estates, or trusts.
  • * Net rental property income.
  • Ordinary gains as reported on Federal Form 4797.
  • Profit sharing.

* Exceptions exist. For more information, visit the RITA Municipalities page, click on your municipality and review the Special Notes section that relates to the appropriate tax year.

Non-Taxable

  • Interest.
  • Dividends.
  • Capital gains.
  • Social Security.
  • Pension distributions.
  • Retirement plan distributions. (IRA, 401K, etc.)
  • Workers' Compensation, State Unemployment Benefits, or other Public Assistance
  • Military pay or allowance of members of the Armed Forces of the United States.
  • Alimony received.
  • *Income earned by someone under 18 years of age.

* Exceptions exist. For more information, visit RITA Municipalities page, click on your municipality and review the Special Notes section that relates to the appropriate tax year. 

Reporting Tenants of Rental Property

It is also mandatory for every property owner of rental property to submit a list to the Tax Administrator of names and addresses of all persons, occupying, leasing or renting the premises. The required list should be submitted within 30 days of any change in tenant status. To do so, please use the forms on the right side of this page.

Quarterly Declaration of Estimated Income

Every resident who anticipates taxable income and does not have the City of Chardon tax withheld by an employer, must file a declaration estimating their income and the estimated tax due if the anticipated amount due is $200 or more. Bills will then be mailed to you for the 2nd, 3rd, and 4th quarterly payments. However, you should be aware that a penalty may be imposed if, by January 15, you have not paid at least 90% of the tax due on your actual gross income for the preceding calendar year.  The estimate shall be filed by April 15 of each year and shall be accompanied by a payment of the remaining 10% and at least the 1st quarter of the estimated tax due for the current year.

Refunds

City regulations and State Law prohibits the paying of refunds that are more than three years old. If you are due a refund, please make your claim promptly.