In accordance with Chapter 192 of Delaware’s codified ordinance, the City of Delaware collects a 1.85% tax on income earned by resident individuals and businesses of the City, and non-resident individuals and businesses earning income in the City.  The City income tax department oversee the administration of the tax including filing and payment of taxes.  Below is a list of frequently asked questions.  If you do not see the answer to your income tax question contact the tax department at incometax@delawareohio.net or at 740-203-1225.  The tax department is open Monday through Friday from 8am to 5pm.  State of Ohio Laws governing Municipal income tax can be found here Ohio Revised Code Section 718.

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: I am under 18 years of age.  Do I pay Delaware income tax on my income?
A:  Starting with the 2024 tax year, the income of individuals under 18 years of age is exempt.  This does not apply to tax years prior to 2024. 

Q: I am a retired Delaware resident.  Do I have to file a tax return?
A:  Residents age 62 or older who demonstrate they are fully retired may be exempted from filing future Delaware returns.  A copy of your Federal tax return will be needed with your final Delaware return to determine if you can be exempted from filing.  Residents who continue to have some type of taxable income while also receiving retirement income will not be exempted. 

Q: I’m not a resident of Delaware, but I work in Delaware.  Do I need to file an income tax return?
A:  Non-resident individuals whose employer correctly withheld 1.85 percent on Delaware wages do not need to file a Delaware income tax return.  If the employer incorrectly withheld, or didn’t withhold at all, you should file a return to pay any additional tax due, or to request a refund of tax withheld in error.  If requesting a refund, note that both you and the employer must sign the return. 

Q: When is the annual Delaware tax return due?
A: The Delaware tax return is due on or before April 15^th each year.  For business taxpayers with a fiscal year end, the return is due on or before the 15^th day of the fourth month after the fiscal year end.  Returns postmarked after the due date are subject to a late filing penalty.  Click here to see penalty information. 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 for an Extension?
A: For taxpayers on a Federal extension, a separate request for a Delaware extension is not required. Submit a copy of the Federal extension with the filing of the Delaware return.  For taxpayers not on a Federal extension, an extension request must be submitted on or before the date the Delaware 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: A partial credit is given to Delaware resident individuals for taxes due and 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 profit from business activities including pass through income. For a complete list of taxable versus non-taxable income click here.

Q: Who needs to file a Declaration of Estimated Tax and 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.  Payments must equal at least 90% of the current tax year liability, or at least 100% of the prior tax year liability.  Underestimating your liability, under paying your liability, or paying estimated tax payments late will result in penalty and interest charges.  Click here to see penalty and interest rates.  Payments are due on the following dates: 

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 St.

Q: Can I file my tax return electronically?
A: Yes.  Resident individuals, businesses and employers can use our e-file tool to prepare and file a Delaware tax return electronically.  E- File is available here.  Electronic versions of tax documents (Federal return, W2 forms, Schedules, etc) must be uploaded during e-filing.  Clear pictures of documents in jpeg format are acceptable.  Employers must submit electronic W2 data in the SSA EFW2 file format.  Non-resident individuals filing for a refund of tax withheld in error cannot electronically file and must use a paper form.

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

Interest shall be 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 (5 percent). The rate shall apply 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 shall be charged for each month (or fraction of a month) that the tax remains unpaid.

Late Filing Penalty

For tax year 2023 and later, a late filing penalty of $25 may be imposed for each failure to timely file (other than an estimated income tax return). This late filing penalty applies regardless of the liability on the return.  This penalty will automatically be waived for the taxpayer’s first failure to timely file after the taxpayer files that return.

For tax years 2016 through 2022, a late filing penalty of $25 per month may be imposed for each failure to timely file (other than estimated income tax returns).  This late filing penalty applies regardless of the liability on the return.  This penalty shall not exceed $150 for each failure to timely file a return.

Tax filings and tax payments related to tax years before 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 Ohio Revised Code Section 718.27.

Q: I received an assessment.  Can I appeal the assessment?
A:  An assessment finding that you have underpaid tax, or charging you penalty and/or interest, may be appealed in writing to the City income tax administrator.  The appeal should include your name, address and specify why the assessment should be deemed incorrect or unlawful.  Appeals can be emailed to Lory Johnson at ljohnson@delawareohio.net.  State of Ohio Laws governing appeals can be found at Ohio Revised Code Section 718.11.

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?  Are payment plans available?
A:  If you are unable to pay the full amount showing due on your tax return, you should still file your return by April 15^th, 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 otherwise may be granted an installment plan via ACH debit of their checking or savings account.  To request an installment plan email the tax department at incometax@delawareohio.net.

Q: I’m not a resident of Delaware.  How do I file for a refund of tax withheld by my employer 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.