In accordance with Chapter 192 of the City of Delaware’s codified ordinances, a 1.85 percent tax is imposed on income earned by resident individuals and resident businesses, and on non-resident individuals and non-resident businesses earning income in the City.  The City  Income Tax Department oversees administration of the tax including tax filing and payment.  Below is a list of frequently asked questions.  If you do not see the answer to your income tax question email the department or phone at 740-203-1225.  The department is open Monday through Friday from 8 am to 5 pm.  State of Ohio laws governing municipal income tax can be found here.

Q: Is the Income Tax office open during the pandemic?
A: The Delaware Income Tax Office is not open for in-person assistance but our tax staff is still ready to help with these contact-free services.

Q: What is the City of Delaware income tax rate?
A: The income tax rate is 1.85 percent.

Q: Am I required to file an annual Delaware tax return?
A: Resident individuals and resident businesses must file an annual return, even if no tax is due.  Non-resident individuals who have income earned in Delaware that is not subject to employer withholding must file an annual return.  Non-resident individuals and non-resident businesses who conduct business in Delaware must file an annual return even if no tax is due.

Q: When is the annual Delaware tax return due?
A: The Delaware tax return is due on or before April 15 each year.  For business taxpayers, the return is due on or before the 15th day of the fourth month after the fiscal year ends.  Returns postmarked after the due date are subject to a late filing penalty.  Penalty information appears below. If the due date should fall on a weekend or holiday, the due date will move to the next business day.

Q: How do I file an extension?
A: For taxpayers on a federal extension, a separate request for a municipal extension is not required. Submit a copy of the federal extension with the filing of the municipal return.  For taxpayers not on a federal extension, an extension request must be submitted on or before the date the municipal return is due.  Please remember that an extension only extends the time allowed to file an annual return, not the time allowed for payment.

Q: Is any credit given if I pay tax to another city?
A: Yes. A partial credit is given to Delaware resident individuals for taxes paid to another city. The credit is the lesser of .50 of the tax paid to the other city, or .00925 of the income taxed by the other city and Delaware. W-2s or copies of the other city’s tax return and proof of payment must support credit claimed.

Q: What type of income is taxable?
A: For individuals, taxable income generally includes wages and net profit from business activities including pass through income. For a complete list of taxable versus non-taxable income click here.

Q: Do I need to file a declaration of estimated tax or make estimated tax payments?
A: Every taxpayer who anticipates having taxable income subject to Delaware income tax, and estimates their tax liability to be $200 or more after excluding Delaware withholding and/or other credits, must file a declaration of estimated tax and make estimated tax payments.  These payments are due quarterly on April 15, June 15, September 15 and January 15 (December 15 for business taxpayers).  Estimated tax payments received after these dates will be subject to penalty and interest.  Penalty and interest rates appear below.

Q: Where can I get a City of Delaware income tax form?
A: Forms are here, and at the tax office in City Hall, 1 S. Sandusky Street.

Q: Can I file my tax return electronically?
A: Yes. Resident individuals can use our e-file tool to prepare a Delaware tax return and, if they qualify, file the return electronically.  E- File information is available here.

Q: Can I deduct business losses from my W-2 wages on my tax return?
A: Losses from self-employment, partnership interests, rental property and other like businesses may not be used to offset W-2 income.

Q: What are the current penalty and interest rates?
A: For tax years beginning on or after January 1, 2016:

Penalty – Unpaid Tax

A penalty may be imposed on unpaid income tax, including unpaid estimated income tax, equal to 15 percent of the amount not timely paid. A penalty may be imposed on unpaid employer withholding tax equal to 50 percent of the amount not timely paid.

Interest – Unpaid Tax

Calendar Year
Annual Interest Rate
As Monthly Interest Rate
2018

2019

2020

6.0%

7.0%

7.0 %

0.5%

.58%

.58%

2021 5.0 % .42%

Interest is imposed on all unpaid income tax, unpaid estimated income tax and unpaid employer withholding tax. The interest rate to be applied each calendar year is the federal short-term rate, rounded to the nearest whole number percent, plus five percent. The rate applies for the calendar year next, following the July of the year in which the federal short-term rate is determined under Section 1274 of the Internal Revenue Code.  Interest is charged for each month (or fraction of a month) that the tax remains unpaid.

Q: Is there a penalty for filing my return late, even if there was no tax due??
A: Yes. A late filing penalty can be imposed at the rate of $25 per month (or fraction of a month) that a return, other than an estimated income tax return, remains unfiled. This late filing penalty applies regardless of the liability on the return. The late filing penalty cannot exceed $150 for each failure to timely file. Tax filings and tax payments related to tax years beginning before January 1, 2016 are subject to the penalty and interest rates and late filing penalties imposed in Chapter 191 of Delaware’s Codified Ordinance, regardless of the date of filing or payment. State of Ohio laws governing interest and penalties can be found here.

Q: How can I file an appeal?
A:  A finding that you have underpaid tax, or charging you penalty and/or interest, may be appealed in writing to the City of Delaware income tax administrator.  The appeal should include your name, address and tax year/amount assessed.  Taxpayers must show in their appeal why the assessment should be deemed incorrect or unlawful.  Appeals can be emailed here.  State of Ohio Laws governing appeals can be found here.

Q: How can I pay my taxes?
A: Tax payments may be made electronically, without service fee, by checking account or credit card through our e-file/e-pay tool.  Please note you must have your Delaware Tax id to register and use the e-file/e-pay tool.  Click here to make a payment by checking account or credit card.  Payment may also be made by check and can be mailed to PO Box 496, Delaware Ohio, 43015.

Q: What if I can’t pay my taxes?
A:  If you are unable to pay the full amount showing due on your tax return, file your return by April 15 and pay as much of the tax as possible.  You will then receive a bill for the remaining balance due, including applicable penalty and/or interest charges.  If you are still unable to pay the balance due in full, you may request an installment plan.   Taxpayers whose accounts are in good standing may be granted an installment plan via ACH debit of their checking or savings account.  To request an installment plan email the tax department here.

Q: I’m not a resident of Delaware.  How do I file for a refund of tax withheld in error?
A: If you are not a resident of Delaware, and had an employer who withheld tax for Delaware in error, you and your employer must complete and sign the individual income tax form and file the return with a copy of your W2 form.  If your refund request is related to days worked outside of Delaware you must also include a list of dates you worked outside Delaware and the full address of the location where you worked.  Note:  If any portion of your refund is related to your working from home, or another location away from your regular place of work, because of COVID-19, your refund will not be available until litigation in the case Buckeye Institute, et al, v. Columbus City Auditor, et al (Franklin County Common Pleas Court Case No. 20-CV-004301) is complete.  Your refund will be held until the litigation is concluded.  Should the conclusion of this litigation determine a refund is allowed, your request for refund will be processed at that time.  Should the conclusion of the litigation determine that a refund is not allowed, you will receive a notice stating this.

 

More Information:
Tax Forms
Income Tax FAQs
Taxable & Non-Taxable Income
Online & Electronic Payments

Finance Department1 South Sandusky StreetEmail740-203-1001
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