City of Zanesville Income Tax: 1.9% Rate, Filing, and Penalties

The City of Zanesville income tax is a flat 1.9% levy on wages, salaries, commissions, and net business profits connected to the city. You owe it if you live in Zanesville, work in Zanesville, or run a business operating inside the city limits. Returns are due April 15, and if your employer already withholds Zanesville tax from your paycheck, filing may be the only step left for you each year.1City of Zanesville. Income Tax Office

Who Owes the 1.9% Tax

Three groups are on the hook:

  • Residents pay 1.9% on all taxable income, no matter where they earn it. Live in Zanesville and commute to Columbus? Those Columbus wages are still taxable in Zanesville.
  • Non-residents pay only on income earned while working or providing services inside the city.
  • Businesses pay 1.9% on net profits from activities conducted in Zanesville.

Employers located in or doing business within the city are required to withhold the 1.9% and remit it. If you’re self-employed or your income isn’t subject to withholding, paying is on you.

Income That Isn’t Taxed

Not everything the IRS taxes is taxable locally. Ohio’s municipal tax law exempts a specific list, and it applies to Zanesville:2Ohio Legislative Service Commission. Ohio Revised Code Chapter 718

  • Social Security and railroad retirement benefits
  • Pensions, retirement payments, and annuities paid under a retirement plan
  • Unemployment compensation (supplemental unemployment benefits are not exempt)
  • Military pay and allowances, including National Guard and reserves
  • Interest, dividends, and capital gains (classified as intangible income)
  • Disability payments from private, government, or charitable sources
  • Alimony and child support
  • Insurance proceeds for personal injuries or property damage, except payments replacing lost wages or representing punitive damages

The intangible income exemption is the one people miss. Dividends and interest from investments aren’t taxable by the city. Wages, commissions, and self-employment earnings are.

Credit If You Work in Another Ohio City

If you live in Zanesville but work in another Ohio city with its own income tax, you won’t pay the full rate twice. Zanesville credits the tax you paid to the other municipality, capped at what Zanesville would have charged on the same income.3American Legal Publishing. Codified Ordinances of Zanesville, OH – 181.14 Credit for Tax Paid to Other Municipalities

Two examples show how it lands. Work in a city that charges 2.5%, and your credit against Zanesville is limited to 1.9%. You owe Zanesville nothing more on those wages, but you also don’t get the extra 0.6% back. Work in a city that charges 1%, and Zanesville still wants the remaining 0.9%.

The credit only covers income actually earned in and taxed by the other city. Income the other city exempted, or income from other sources, doesn’t generate a credit.

Quarterly Estimated Payments

If you expect to owe at least $200 in Zanesville tax for the year after withholding and credits, the city requires quarterly estimated payments.4Ohio Legislative Service Commission. Ohio Revised Code Section 718.08 That mainly catches self-employed workers, freelancers, landlords with taxable rental income, and anyone whose employer doesn’t withhold for Zanesville.

For a calendar-year taxpayer, the cumulative schedule is:

  • April 15: at least 22.5% of the year’s estimated liability
  • June 15: at least 45%
  • September 15: at least 67.5%
  • January 15 of the following year: at least 90%

Those percentages are cumulative, not per quarter. The April payment covers 22.5%, June brings the running total to 45%, and so on. Falling short triggers interest and penalties, so if your income is unpredictable, err high.

Filing Your Annual Return

Individual returns and net profit returns are due April 15.1City of Zanesville. Income Tax Office To fill one out, pull together:

  • All W-2s
  • Any 1099-NEC or 1099-MISC forms
  • A copy of your federal return
  • Records of municipal tax withheld by employers in other cities, if you’re claiming the credit

You can mail the completed return to the Income Tax Division at 401 Market Street, Room 122, Zanesville, OH 43701, or file through the city’s online portal. Payment can be sent with a mailed return by check or money order, or made electronically.

Extensions

A federal six-month extension automatically extends your Zanesville return to October 15 for most filers. You don’t have to file a separate request with the city as long as the federal extension is in place.5American Legal Publishing. Codified Ordinances of Zanesville, OH – 182.094 Extension of Time to File

The catch: an extension to file is not an extension to pay. Any tax owed is still due by April 15, and interest and penalties start running the next day if you underpay.

What It Costs to Be Late

Missing the deadline or underpaying stacks charges quickly:1City of Zanesville. Income Tax Office

  • Interest of 0.5% per month on the unpaid balance
  • A 15% penalty on tax not paid on time
  • A late filing fee of $25 per month, capped at $150
  • For employers who fail to remit withheld tax, a penalty of up to 50% of the unpaid amount

Ohio law requires the city to abate the late filing penalty on a taxpayer’s first offense once the overdue return is filed.6Ohio Legislative Service Commission. Ohio Revised Code Section 718.27 That first-time forgiveness covers the $25 filing fee only. Interest and the 15% underpayment penalty still apply.

If you can’t finish the return by April 15, pay what you estimate you owe anyway. The federal extension shields you from the late filing fee, and paying the estimated balance shields you from the 15% penalty. A small true-up later is a far cheaper mistake than ignoring the deadline.

Reaching the Income Tax Division

Questions about your account, notices about discrepancies, and requests for blank forms all go through the same office:

  • Address: 401 Market Street, Room 122, Zanesville, OH 43701
  • Phone: 740-617-4918
  • Email: inctax1@coz.org

If you’re not sure whether you need to file, or how the credit for taxes paid to another city applies to your paychecks, calling the division is the fastest way to get a straight answer.1City of Zanesville. Income Tax Office