Cleveland Heights taxes come in three main pieces: a 2.25% municipal income tax on earned income, Cuyahoga County property taxes calculated from a millage rate applied to 35% of your home’s market value, and an 8.00% combined sales tax on most retail purchases. The piece that catches new residents off guard is the income tax credit for working in another city, which is capped at 1.00% and leaves most commuters with a balance owed to Cleveland Heights.
Municipal Income Tax
The city levies a 2.25% income tax on wages, salaries, commissions, net business profits, and qualifying rental income.1Regional Income Tax Agency. Tax Rates Table It applies to residents on income earned anywhere, and to non-residents on income earned inside the city limits.2City of Cleveland Heights. Income Tax
Passive income is not taxed. Interest, dividends, Social Security, and pensions fall outside the municipal tax. If those are your only sources of income, you still need to file a Declaration of Exemption each year rather than a full return.2City of Cleveland Heights. Income Tax
The 1.00% Credit for Working in Another City
Residents who earn wages in another Ohio taxing city can claim a credit against their Cleveland Heights bill, but the credit is capped at 1.00% of taxable income.1Regional Income Tax Agency. Tax Rates Table Because the city’s rate is 2.25%, most commuters still owe something on top of what their workplace city withholds.
A quick example. On $70,000 of wages earned in a city that charges 2.00%, the workplace city withholds $1,400. Cleveland Heights credits 1.00% of your income, or $700, against its 2.25% liability of $1,575. You still owe $875 to Cleveland Heights. If the workplace city charges 1.00% or less, the credit matches whatever you actually paid there, and the shortfall grows. When employer withholding only covers the workplace city, plan on quarterly estimated payments to avoid a bill at filing time.
Who Must File
Every full-year and part-year resident aged 18 or older must file an annual return, even if no tax is owed. Non-residents who earned income in the city must also file, and businesses file on their net profits.2City of Cleveland Heights. Income Tax
Filing Through RITA
Cleveland Heights uses the Regional Income Tax Agency to administer its municipal tax. Residents file Form 37 through RITA’s online portal or by mail.3Regional Income Tax Agency. Individuals – Form and Instructions The deadline for the 2025 tax year is April 15, 2026.4Regional Income Tax Agency. Individuals – Filing Due Dates You will need W-2s showing local withholding, plus any federal schedules supporting business or rental income.
Estimated Payments, Penalties, and Interest
If you expect to owe $200 or more after credits and withholding, quarterly estimated payments are required. The due dates are April 15, June 15, September 15, and January 15 of the following year.5Regional Income Tax Agency. Due Dates for Estimated Payments
Tax paid after the deadline, including underpaid estimates, carries a 15% penalty. A separate late filing penalty applies when a return is submitted late, whether or not tax is owed. Interest on unpaid balances runs at 9.00% for 2026, set each year as the federal short-term rate rounded to the nearest whole percent plus five points.6Regional Income Tax Agency. Penalty and Interest Rates
Property Tax
Property tax uses Ohio’s millage system: one mill equals $1 of tax for every $1,000 of assessed value.7Ohio Department of Taxation. Property Tax Resource Hub The total millage on a Cleveland Heights bill combines levies from the city, the Cleveland Heights-University Heights City School District, the Cuyahoga County Public Library, and Cuyahoga County. The school district levy is typically the largest share.
Assessed value is set at 35% of market value, not the full amount.8Cuyahoga County. Tax Bill Example A home with a $200,000 market value has an assessed value of $70,000. Multiply the assessed value by the total millage rate and divide by 1,000 to estimate the annual bill. The Cuyahoga County Fiscal Officer reassesses values periodically to reflect current market conditions.9Cuyahoga County. Budget Commission
Payment Deadlines
Cuyahoga County splits the annual bill into two installments. For 2026, the first-half payment is due February 19, with a grace period through March 2 before a 10% late penalty is added.10Cuyahoga County. Avoid Penalties – Real Estate Taxes Are Due Soon The second-half payment is due July 16, 2026.11Cuyahoga County. Tax Collection Calendar
Programs That Lower the Bill
The owner-occupancy credit reduces qualified levies by 2.5% for anyone who owns and occupies the property as a primary residence on January 1 of the filing year. You and your spouse can claim the credit on only one Ohio home, and you apply through the county auditor by December 31.12Ohio Department of Taxation. Application for Owner-Occupancy Tax Reduction
The homestead exemption shields the first $29,000 of assessed value from taxation if you are 65 or older, permanently and totally disabled, or a surviving spouse aged 59 or older of a previous participant. For tax year 2026, qualifying household income cannot exceed $41,000 based on your 2025 return, though homeowners who received the exemption in 2013 have no income cap. Social Security benefits are generally excluded from that income calculation.13Butler County Auditor. Homestead Exemption
Sales Tax
The combined sales and use tax rate is 8.00%: Ohio’s 5.75% state tax plus Cuyahoga County’s 2.25% county tax. The rate is uniform across all retail locations in the county.
Several categories are exempt. Unprepared food and groceries for off-premises consumption, prescription medications and medical supplies, children’s diapers, car seats, cribs, feminine hygiene products, and bottled water for off-site consumption are all tax-free. Prepared food, alcohol, soft drinks, and tobacco remain fully taxable.14Ohio Department of Taxation. Sales and Use Taxability