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
Effective January 1, 2015, for income tax filers of 2015 taxes, where 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 2020 tax returns has been extended from April 15 to May 17, 2021 for individuals and businesses. This extension does not apply to estimated tax payments which are still due April 15, 2021.
This coincides with Federal IRS Guidelines the US Treasury Department issued for special tax filing and payment relief for individuals and businesses in response to the COVID-19 Outbreak.
Taxpayers who are owed a refund are urged to file as quickly as possible. Penalties and interest will begin to accrue on any remaining unpaid balances on May 17, 2021. You will automatically avoid interest and penalties on the taxes paid by May 17, 2021.
Taxpayers who are unable to file by the May 17, 2021 deadline are asked to submit Federal Extension Form 4868, along with their request for extension.
Where to Mail Portsmouth City Returns and Payments:
City of Portsmouth, Income Tax Division
PO Box 1323
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.
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.
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
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.
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:
2016 through present
2015 and prior