The Mason, Ohio income tax rate is 1.12% on earned income. The rate combines a 1% base municipal income tax with an additional 0.12% safety services tax that voters approved, and the combined rate has been in effect since the 2013 tax year.1Mason, Ohio. Tax FAQs for Individuals The Regional Income Tax Agency (RITA) collects it on the city’s behalf.
On $50,000 of qualifying wages, the tax works out to $560 before any credits.
What Income the 1.12% Applies To
The rate reaches earned income broadly: salaries, wages, bonuses, commissions, and self-employment net profits.2Ohio Legislative Service Commission. Ohio Revised Code 718.01 – Definitions It also applies to lottery winnings, gambling proceeds, and prizes paid to Mason residents.3City of Mason, Ohio. Mason Tax Ordinance – Section 182.011 For a business owner, the tax applies to net profit after allowable deductions, not gross revenue.
A substantial list of income is exempt under Ohio law:2Ohio Legislative Service Commission. Ohio Revised Code 718.01 – Definitions
- Social Security, railroad retirement, pensions, annuity payments, and disability payments
- Military pay and allowances, including reserve component pay
- Interest, dividends, capital gains, and other intangible income
- Unemployment compensation
- Alimony and child support received
- Insurance proceeds for personal injury or property damage, other than payments for lost wages or punitive damages
The intangible-income exemption is the one that matters most for retirees. If your income is entirely Social Security, pension payments, and investment returns, you likely owe Mason nothing.
Who Has to File
Every employed Mason resident aged 18 or older must file a return, including full-time students with earned income, and the filing requirement stands even when your employer withheld the right amount and nothing is due.4City of Mason. Individuals Where you work doesn’t change that: a Mason resident who commutes to Cincinnati or Dayton still owes Mason tax on full qualifying income, though the credit discussed below usually offsets most or all of the Mason liability.
Non-residents who perform work inside Mason owe tax on income earned there, almost always handled through employer withholding. Ohio’s 20-day rule exempts employers from withholding Mason tax for an employee who works in the city 20 or fewer days in a calendar year. Each calendar day counts only once, even if the employee visits more than one municipality that day.
Businesses operating in Mason, holding property there, or employing workers inside city limits owe tax on net profits from the local activity. Pass-through entities such as LLCs, partnerships, and S corporations can trigger a Mason filing requirement when they hold property or do business in the city.
Credit for Taxes Paid to Another City
If you live in Mason but work in another Ohio city with a municipal income tax, Mason gives you a credit for 100% of the tax paid to that city, capped at the combined 1.12%.1Mason, Ohio. Tax FAQs for Individuals The practical effect:
- If the other city’s rate is 1.12% or higher, you owe Mason nothing on those wages.
- If the other city’s rate is lower, you pay Mason the difference. Working in a city with a 1% rate leaves 0.12% owed to Mason.
The 100% credit level has applied since tax year 2010.5American Legal Publishing. Mason Code of Ordinances – Section 10.04 Limitations On Income Tax Mason also offers a Resident Homeowner Credit, but the combined total of all credits cannot exceed 1.12%.1Mason, Ohio. Tax FAQs for Individuals
Filing and Estimated Payments
The annual return for tax year 2025 is due April 15, 2026.6Mason, Ohio. Tax Information You file on RITA Form 37, available from the RITA website, with your W-2s and any 1099s, plus federal Schedule C for self-employment or Schedule E for rental income.7Regional Income Tax Agency. Individuals – Form And Instructions RITA accepts returns through FastFile, which handles a single return without an account, or MyAccount, a portal for e-filing, payments, and payment history.8Regional Income Tax Agency. Individuals – Online Services MyAccount
A federal extension automatically extends your Mason return to the fifteenth day of the tenth month after your tax year ends, which is October 15 for calendar-year filers. Without a federal extension, you can request a six-month extension from Mason’s tax administrator before the original due date. The extension covers filing only. Any tax owed is still due April 15, and unpaid amounts accrue penalties and interest from that date.9American Legal Publishing. Mason Code of Ordinances – Section 182.094 Extension of Time to File
If you expect to owe $200 or more after credits and withholding, you must make quarterly estimated payments.10Regional Income Tax Agency. Individuals – Estimated Tax Payments This typically catches self-employed filers, business owners, and anyone with substantial income not subject to withholding. For tax year 2026, the deadlines are April 15, June 15, and September 15, 2026, with the fourth payment due January 15, 2027.11Regional Income Tax Agency. Filing Due Dates Quarterly payments totaling at least 90% of your actual annual tax avoid the underpayment penalty.12Ohio Legislative Service Commission. Ohio Revised Code 718.08 – Estimated Taxes A filing extension does not move the quarterly dates.
Penalties and Interest
Late filing carries a flat $25 penalty per return for tax years beginning in 2023 and after. Unpaid tax is the more expensive problem: RITA can impose a penalty of 15% of any tax not paid by the deadline, including underpaid estimated installments.13Regional Income Tax Agency. Penalty and Interest Rates A $1,000 unpaid balance brings an immediate $150 penalty before any interest.
Interest runs on top of that. The annual rate on unpaid municipal income tax is 9.00% for the 2026 calendar year, set each year as the federal short-term rate plus five percentage points.13Regional Income Tax Agency. Penalty and Interest Rates Interest accrues from the original due date until the balance is paid, so filing an extension without paying what you owe doesn’t stop the clock.