RN with questions about Earnings tax (Cincinnati, Middletown: to rent, credit, homes)

[wooper68]

I am from Missouri and we don't have an earnings tax. What exactly is it? Is it based on where you live or where you work? I am a nurse and would like to work where it will be most cost effective. I was thinking about West Chester, Middletown areas to work. Any tax advice would be appreciated.

[Pathwalker]

I presume an earnings tax is the same thing as a municipal income tax....? You know how the IRS taxes your income - and how some states do the same thing? Well, in certain municipalities (cities, towns, villages), there is also a tax on your income if you work within that municipality.

Not all cities in this area have it. I'm not sure which ones do or don't. You could probably do a quick Google search to find out. Just type in "Middletown earnings tax" to find out if one exists. But I know there isn't one in West Chester, because it isn't a municipality. It's just a township. HOWEVER, that is subject to change depending on the voters. There has been a push lately to incorporate West Chester into a city, and one reason given is because it would allow them to create an earnings tax. So keep that in mind. You might try some place like Liberty Township. It's just north of West Chester and south of Monroe.

[Ohiogirl81]

How an income tax is collected depends on where you live and where you work. Basically, what happens is the municipality where you work collects an income tax -- usually between 1 and 2 percent -- from your wages. If you live in that same municipality, you don't have to worry about anything else. If you live in a different municipality, more than likely there's some sort of reciprocal arrangement.

For instance, when I lived in Lebanon and worked in Batavia, both cities levy a 1 percent income tax. Batavia collected the income tax from my paycheck, and kept the money. Lebanon gives its residents a 1 percent credit on the 1 percent income tax. I owed Lebanon no money. If I'd have worked in a municipality that levied a 0.5 percent income tax, for instance, I would have owed Lebanon 0.5 percent of my income at tax time.

Ohio's townships aren't permitted to levy income taxes on their residents. Villages and cities, and some school districts, are. If you work inside a township, no income tax is collected from your pay. If you live in a township, you owe no income tax to your township of residence, either. But if you live in a city that collects an income tax, you'll owe the city whatever percentage it collects.

If there's a difference between what's collected and what you owe -- if you work where 1 percent is collected but live where 2 percent is owed -- you can usually arrange to have your employer take the extra amount out, and send it to your home municipality.

Hope this makes sense!

[wooper68]

Thanks for the info. This is all new to me. We don't have this where I'm from. I'm kind of leaning towards homes in South Lebanon or Kings Mills or Morrow/Maineville. Can anyone tell me about taxes in these areas. I'm looking at West Chester or Middletown to work. I want to work in a hospital but don't want to drive into the city of Cincinnati. Does anyone have any other options?

[Ohiogirl81]

Are you looking to rent or buy? Because if you live somewhere where there's no income tax, it's likely you'll just pay more in property taxes. I paid 2.1 percent of my income to the city of Cincinnati, but my next-door neighbors in the township paid twice the property tax I did, and they had to pay extra for their garbage pickup, and mine was free. Townships are constantly coming at you with general operation and special-expense tax levies (all tax increases must be voter approved).

Trust me, you'll pay, one way or another.

Jewish Hospital is in Kenwood/Sycamore Township and would have no income tax; neither would Clermont Mercy (Batavia Township) or Anderson Mercy hospitals, both in the east 'burbs. Middletown will collect an income tax. West Chester will not, unless, as WCRob said, the residents vote themselves into city status.

[Pathwalker]

Originally Posted by Ohiogirl81

Jewish Hospital is in Kenwood/Sycamore Township and would have no income tax; neither would Clermont Mercy (Batavia Township) or Anderson Mercy hospitals, both in the east 'burbs. Middletown will collect an income tax. West Chester will not, unless, as WCRob said, the residents vote themselves into city status.

On the upside of that, each time it has come up for a vote, West Chester residents have voted it down. And they're building a new medical facility here. Supposed to be a full-service hospital eventually.

[janetls]

There's a new outpatient hospital in Lebanon, Ohio. It's called Bethesda Medical Center at Arrow Springs. The closest inpatient hospital would be Bethesday North - both are part of Tri Health.

Lebanon's earnings tax is 1% so if you lived & worked in Lebanon, you'd pay 1%. Lebanon has a lot of neat little shops & the historic Golden Lamb.

Another option would be to live in a township. (I live in Salem Township & pay no earnings tax there, but I pay where I work)

Good luck!

[wastina]

All I know is that Wyoming has one (to pay for their schools) and Glendale does not. Both are upscale neighborhoods to the north, and Glendale is not far from the new hospitals and medical complexes in Fairfield.