Income Tax Division

Effective January 1, 2016, changes to Municipal Income Tax Laws, Policies and Regulations were made. Please note changes in income tax rate and credit for tax paid to other municipalities (*see below). Codified Ordinances for tax year beginning 2016 and all years prior are available in “Useful Links & Forms”. Please contact your personal tax advisor or the City Income Tax Division for more information.

*Current Municipal Tax Rate = 2.5%   (beginning January 1, 2016)

*Credit for Tax Paid to Another Municipality

When a resident of the City of Portsmouth, Ohio is subject to a municipal income tax in another municipality, he shall receive a credit of the tax paid to another municipality(s) up to fifty-percent (50%) of the amount owed to the City of Portsmouth, Ohio.  Be advised, this is a reduction from the 100% credit previously allowed.  Please contact your personal tax advisor or the City Income Tax Division for more information.

Mandatory Tax Filing

On January 1, 2014, the city implemented mandatory tax filing.

** The filing deadline for 2023 tax returns Tuesday, April 18, 2023 for individuals and businesses. This extension does not apply to estimated tax payments which are still due April 15, 2023.

City Income Tax deadlines coincide with Federal IRS Guidelines per the the US Treasury Department. 

Taxpayers who are owed a refund are urged to file as quickly as possible.  Penalties and interest will accrue on any remaining unpaid balances.  You will automatically avoid interest and penalties on the taxes paid by the deadline.

Taxpayers who are unable to file by the deadline are asked to submit Federal Extension Form 4868, along with their request for extension.

Where to Mail Portsmouth City Returns and Payments:

Mandatory Filing Affects Every Resident

Beginning with your 2014 city tax return, all residents of the City of Portsmouth (18 years of age and older) are required to file a city income tax return with the Tax Division on an annual basis, even if no tax is due.

The term “resident” applies to anyone whose permanent legal residence is located within the City of Portsmouth, including anyone temporarily living away from their Portsmouth home, such as college students attending school away from Portsmouth. This includes persons who own their homes as well as those who rent the apartment or home in which they live.

Mandatory filing also applies to persons who in the past did not have to file a return with Portsmouth because they had Portsmouth tax fully withheld from their wages.

Non-residents who have income derived within the City of Portsmouth and for whom the tax is not withheld by their employer must file a Portsmouth City income tax return and pay City income tax.

Exceptions

Permanently retired or permanently disabled persons with only non-taxable income for city purposes (such as social security, pensions, interest, and dividends) may file for a permanent exemption from the mandatory filing requirement by completing the Declaration of Exemption Return.

Active duty military personnel, unemployed persons or persons with no reportable income or loss for the current year may use the Declaration of Exemption Return as their annual return filing with the Tax Division.

Forms

For the convenience of its taxpayers and tax preparers, the City Tax Division has made its tax return forms and instructions available online in an easily downloadable format as well as links to local, state, and federal tax forms, regulations, and financial reports for use by both residents and businesses. The tax office is available to help you between the hours of 8:00 A.M. and 4:00 P.M. Monday through Friday if you have questions about your residency status or filing your income tax return

Click to view forms.

Interest and Penalties

Interest, Penalties & Exceptions
A taxpayer will be assessed interest and/or penalties for the delinquent filing of income tax returns and for the late payment of taxes due. The following is the listing of these charges.

Interest

Each year, the interest rate that will apply to overdue municipal income taxes during the next calendar year will be posted herein, as required by Ohio Revised Code Section 718.27(F).

The interest rate is calculated by adding five percentage points to the federal short-term rate (rounded to the nearest whole number percent) that was in effect during July of the current year, in accordance with Ohio Revised Code Section 718.27(A)(5).

Based on these requirements, the applicable interest rate is as follows:

Calendar Year	Annual Rate	Monthly Rate
2016 through present	5.0%	0.42%