Fairfield City Income Tax: Rate, Credits, and Filing

The Fairfield city income tax is a 1.5% levy on wages, salaries, and net business profits earned by anyone who lives in Fairfield, Ohio, or works inside city limits.¹ Annual returns are due April 15, and most residents between 18 and 65 have to file one even in years they owe nothing. The money funds police, fire, roads, and other day-to-day city services.

Who Has to File

Every Fairfield resident between the ages of 18 and 65 must file a city income tax return each year, whether or not any tax is owed. Residents over 65 only file if they had taxable income or a loss to report. Part-year residents who lived in Fairfield for any stretch of the year also have to file.² If you moved in or out mid-year, the Income Tax Division can help you figure out how to split the reporting.

Non-residents have obligations too. If you work in Fairfield and your employer doesn’t withhold the 1.5% tax, you owe it yourself. The same goes for non-residents with self-employment income or rental property inside the city, and for businesses operating here.¹

Income earned by anyone under 18 is not taxable, so a teenager with a part-time job in Fairfield owes nothing and does not file.²

What Income the 1.5% Rate Covers

The tax applies to wages, salaries, commissions, bonuses, and most other compensation. For the self-employed, it hits net profit from federal Schedule C. Net rental income from Schedule E and farm income from Schedule F are also taxable, as is pass-through income you receive from partnerships, S-corporations, estates, and trusts.²

One quirk catches people off guard: contributions to deferred compensation plans, qualified or not, count as taxable income locally.² The slice of your paycheck going into a 401(k) is still subject to the Fairfield tax, even though federal income tax skips it.

Income Fairfield Does Not Tax

A sizable list of income types fall outside the city tax, which is why many retirees file nothing at all. Under Ohio law, the following are exempt from municipal income tax:³

Interest, dividends, and capital gains (all intangible income).
Social Security and railroad retirement benefits.
Pensions, annuities, IRA distributions, and other retirement plan payments.
Unemployment compensation (supplemental unemployment benefits from an employer may still be taxable).
Military pay and allowances, including reserve and National Guard.
Disability payments from private or government sources.
Alimony and child support received.
Workers’ compensation and insurance proceeds for personal injury or property damage, except amounts replacing lost wages or awarded as punitive damages.
Income earned by anyone under 18.

Credit for Taxes Paid to Another City

If you live in Fairfield but work in another Ohio municipality that charges its own income tax, you don’t get taxed twice. Fairfield gives a 100% credit for taxes paid to the other city, capped at its own 1.5% rate.⁴ The math is straightforward:

If the work city charges 1.5% or more, nothing additional is owed to Fairfield.
If the work city charges 1.0%, you owe the remaining 0.5% to Fairfield.
If the work city has no tax, you owe the full 1.5% to Fairfield.

Some employers handle this through “courtesy withholding,” splitting your local tax between the two cities automatically. If yours doesn’t, calculate the difference and pay it with your annual return.⁴ Hold onto pay stubs or year-end statements showing what the other city withheld; you’ll need to document the credit.

Quarterly Estimated Payments

Anyone who expects to owe Fairfield $200 or more for the year after withholding and credits must make quarterly estimated payments. Due dates are April 15, June 15, September 15, and January 15. To stay out of penalty territory, pay at least 100% of your prior year’s liability or 90% of the current year’s by January 15 of the following year.² This mainly affects the self-employed and anyone whose employer isn’t withholding enough.

How to File Your Return

A complete return has to include every W-2, your federal Form 1040, and any supporting federal schedules. Without those attachments, the city treats the return as unfiled.² Self-employed filers should include Schedule C, landlords should include Schedule E, and anyone claiming the credit for another city’s tax should attach documentation of what was withheld.

Fairfield takes returns four ways:¹

Online, through the Fairfield Online Tax Portal. You’ll need your tax account number and Social Security number to set up access.
By mail, to 701 Wessel Drive, Fairfield, Ohio 45014.
In the secure drop-box at the same address, available outside business hours.
In person at the Income Tax Division office during business hours.

Checks go to the City of Fairfield. Keep copies of everything you send.

Deadlines and Extensions

The annual return is due April 15 for the prior tax year. The 2025 return, for example, is due April 15, 2026.²

If you need more time, file a Fairfield Extension Application, or a copy of your federal extension, by April 15. An approved extension moves the filing deadline to October 15. It does not move the payment deadline. Any tax owed still has to be paid by April 15 to avoid penalties and interest, and the extension doesn’t delay the start of the current year’s estimated payments either.²

Penalties and Interest for Missing the Deadline

Fairfield’s penalty structure follows Ohio Revised Code 718.27, and the charges stack.

The late filing penalty can run up to $25 for each return not filed on time. For tax years 2023 and later, the city must waive this penalty the first time you file late, provided you eventually submit the return.⁵

A separate late payment penalty, equal to 15% of the unpaid amount, can be assessed one time on tax or estimated tax that wasn’t paid when due.⁵

On top of those, interest accrues on unpaid balances at a rate set each year as the federal short-term rate plus five percentage points.⁵ For calendar year 2026, Fairfield’s interest rate is 9%.⁶ Interest runs from the original due date until the balance is cleared.

Appealing an Assessment

If you disagree with an assessment, a penalty, or any other determination from the Income Tax Division, you can appeal to the Fairfield Local Board of Tax Review. Once you file, the board must schedule a hearing within 60 days unless you ask for more time or waive the hearing.⁷ You can represent yourself or bring an attorney or CPA.

1
City of Fairfield, Ohio. Frequently Asked Questions – Tax (Income Tax)
2
Fairfield, OH. Income Tax Division
3
Ohio Legislative Service Commission. Chapter 718 – Municipal Income Tax
4
City of Fairfield, Ohio. Frequently Asked Questions – Tax Credit
5
Ohio Legislative Service Commission. Chapter 718 – Municipal Income Tax – Section 718.27
6
Fairfield, OH. Tax Regulations
7
Fairfield, OH. Income Tax Board of Review