The Akron city income tax rate is a flat 2.50% on earned income. It applies to every Akron resident age 18 or older on income earned anywhere, and to non-residents on income earned while physically working inside the city. Akron also gives a dollar-for-dollar credit, up to the full 2.50%, for income tax paid to another Ohio municipality, so residents whose work city already taxes them at 2.50% or more usually owe Akron nothing beyond the filing itself.
What the 2.50% Rate Applies To
The 2.50% rate has been in effect since January 1, 2018, and it is uniform: a $20,000 earner and a $200,000 earner pay the same percentage. Ohio law requires municipal income taxes to be levied at a single rate rather than on brackets.
Two groups owe the tax. Akron residents 18 and older owe it on wages, self-employment income, and net business profits regardless of where that income is earned. Non-residents owe it on income earned while working within Akron’s boundaries, even if their employer is based elsewhere.
Taxable income tracks Ohio’s definition of “qualifying wages,” which starts from the federal wage base used for Social Security. Gross wages, salaries, commissions, bonuses, and tips are all in. Employee contributions to 401(k), 403(b), and 457 plans are added back, so they are taxed by Akron even though they reduce your federal taxable income. Net profit from a federal Schedule C counts, as does net rental income on Schedule E and farm income on Schedule F.
If You Work Remotely
For a resident working remotely from an Akron home for an out-of-town employer, Ohio generally sources wages to the municipality where the work is physically performed. Days you sit at your Akron desk are Akron days, even if the company’s office is in Cleveland or Columbus. Your employer may still withhold for its own city. When that happens, you can end up owing Akron on the same wages and needing to file for a refund from the work city.
Income That Is Not Taxed
Ohio Revised Code 718.01 carves several categories of income out of municipal taxation entirely. Social Security, railroad retirement, pensions, annuities, and disability payments are exempt. Interest, dividends, and capital gains from investments are exempt as intangible income, unless the gains are tied to a business you actively run. All military pay and allowances, including National Guard and reserve pay, are exempt. Standard unemployment compensation is exempt, though supplemental unemployment paid by an employer is not.
Who Has to File a Return
Every Akron resident age 18 or older must file an annual return, even in a year when no tax is owed. This surprises people whose employer already withholds Akron tax from every check: the withholding does not substitute for the return. The return still has to be filed.
There is one narrow out. A resident whose only income is from exempt sources, such as Social Security, pensions, interest, and dividends, does not need to file annually. Instead, they file a one-time declaration of exemption with the Akron Income Tax Division. That declaration stays on file until the income picture changes.
How the Credit for Other Cities Works
Akron grants a 100% credit for municipal income tax paid to another city, capped at Akron’s own 2.50% rate. Work in a city that also charges 2.50%, and the credit zeroes out your Akron liability on those wages. Work in a city that charges 2.00%, and you still owe Akron the 0.50% difference.
The credit is nonrefundable. If the other city’s rate is higher than 2.50%, Akron does not refund you the extra. And the credit does not excuse you from filing. You still have to send Akron a return reporting the income and claiming the credit; skipping the return is a separate violation from skipping payment.
When the Return Is Due
Annual returns and any balance owed are due April 15. If April 15 lands on a weekend or legal holiday, the deadline moves to the next business day.
An extension to file is available by submitting a copy of your federal extension request to the Akron Income Tax Division by the original April 15 deadline. If granted, the municipal extension runs for the same length as the federal one. It only extends the time to file. Interest and the late payment penalty still run on any unpaid tax from April 15 forward.
Quarterly Estimated Payments
If you expect to owe Akron at least $200 after withholding and credits, you have to make quarterly estimated payments on Form D-1. This mostly catches the self-employed, freelancers, landlords, and anyone whose employer does not withhold Akron tax. The cumulative targets through the year are:
- April 15: 22.5% of the year’s liability
- June 15: 45%
- September 15: 67.5%
- January 15 of the following year: 90%
Underpayment can trigger penalty and interest, so a reasonable estimate matters more than hitting the exact figure.
Penalties and Interest for Late Filing or Payment
Penalties and interest are set under Ohio Revised Code 718.27.
The late filing penalty is up to $25 per return. It is a flat charge, not a monthly one, and the city must waive it the first time a taxpayer files late once the return comes in. The late payment penalty is up to 15% of the unpaid tax. Interest accrues on unpaid tax from the original due date at the federal short-term rate plus five percentage points, rounded to the nearest whole number; Akron’s posted interest rate for 2026 is 9%.
These add up fast. On a $1,000 balance, the 15% penalty alone is $150, and 9% interest adds roughly $7.50 a month. If you cannot pay in full, filing on time still spares you the $25 filing penalty and usually makes a payment arrangement easier to set up.