Income Tax Department
If you have received a Mayor's Court summons, please report on or before the date specified to the Tax Department office.
Walk-In and Phone Assistance Available:
Monday - Friday:
8:30 am - 4:00 pm
Tel: (440) 888 -6440
Tel: (440) 884-9600 ext. 5698 (to leave a message)
Fax: (440) 885-8228
The City of Parma Heights prides itself on customer service. The proximity of having the Income Tax Department in City Hall is an added benefit where your municipal income tax return can be prepared at no cost by a member of the Income Tax Department. Personnel are available throughout the day to assist residents with filing tax returns and accepting payments of taxes during normal business hours.
The City has specifically tailored its tax returns and forms for its residents and employers. Forms can be downloaded from this website. The City does not incorporate e-filing
, but does offer the "Individual Auto Calc Return
" on this website allowing a tax preparer to enter income tax information onto an electronic form that will automatically and accurately calculate one's return. Once finished, the return can be printed out and sent to the City.
The City of Parma Heights pursuant to City Ordinance collects income tax from persons employed and businesses located within the City, and from Parma Heights residents who work in communities other than Parma Heights. Since January 1, 2005, the City’s income tax rate has been established at 3.0%. The tax rate credit for taxes paid to other municipalities or joint economic development districts (JEDDs) is 100% up to 2.0%.
The City relies on income tax revenues to fund nearly 60% of its General Fund operating expenditures. City Ordinance requires every resident 18 years of age or older to file an annual income tax return regardless of your filing status (i.e. retired, disabled and/or unemployed). The City does not tax interest income, retirement income, pensions, social security, dividends and capital gains.
What's New for Tax Year 2016?
What changes should I know about now?
**Estimated Payments and Due Dates**
You are not required to make estimated payments unless your estimated tax liability for the year (after credits and withholding, if any) is $200 or more. If your estimated tax liability is less than $200, you may still declare an estimate, for which the City of Parma Heights will send billing statements.
Estimate due dates are as follows:
1st Quarter - April 15th
2nd Quarter - June 15th
3rd Quarter - September 15th
4th Quarter - December 15th
Please note that these due dates are the same as the IRS, with the exception of the 4th quarter, which is one (1) month earlier than the IRS deadline. If a specific due date falls on the weekend, the deadline is automatically extended to the next business day.
Penalty and interest may be imposed or late or non-payment of your estimated payments as provided below in the "penalty and Interest Rates" section.
The State of Ohio General Assembly enacted House Bill 5 in December 2014 mandating specific changes to local laws relating to municipal taxes. House Bill 5 requires that the City of Parma Heights publish the penalty and interest rates for tax years beginning on or after January 1, 2016. Penalty and interest rates for tax years prior to January 1, 2016 can be found in the current Parma Heights Tax Ordinance.
New Interest and Penalty Rates
Interest on unpaid income tax, estimated income tax and withholding tax
The interest rate is based on the federal short-term rate, rounded to the nearest whole number percent plus five percent. The interest rate for the calendar years 2016 and 2017 are as follows:
- 2016 - 5.00%
- 2017 - 6.00%
Penalty on unpaid income tax, estimated income tax and withholding tax
A penalty may be imposed on the following unpaid taxes for tax years beginning on or after January 1, 2016:
- 15.00% - on unpaid income tax and unpaid estimated income tax not timely paid
- 50.00% - on unpaid withholding tax not timely paid
Penalty on late filing
A penalty may be imposed on each Parma Heights tax return, other than estimated income tax return, not filed timely, of twenty-five dollars ($25.00) each month or any fraction, during which the return remains unfiled regardless of the liability. The penalty shall not exceed one hundred-fifty dollars ($150.00) for each return not filed timely.
In addition to the penalties above, the Ohio Revised Code Section 718.99 also provides criminal penalties for failure to comply with the income tax ordinance of up to one thousand dollars ($1,000.00) or up to six months imprisonment for each offense.
Charge for Dishonored Remittance
There will be a ten dollar ($10.00) charge to anyone who provides a remittance that is subsequently dishonored by the bank upon which it is drawn.
Useful Links and Information:
Please Note: Some web browsers attempt to open PDFs with their own reader which may not work correctly with the fill-in forms. It is strongly recommended that you download the fillable forms by right-clicking on the forms and opening them with Adobe Reader so that they will function correctly.
Download Acrobat Reader
Parma Heights Tax Ordinance
For tax years 2015 and earlier
For tax years 2016 and after
Parma Heights Tax Rules and Regulations
(Rental) Business Questionnaire
Tenant Information Report
Electronic Fillable Forms
Individual Auto Calc Return
Withholding Reconciliation Form (May be used for all tax years)