For tax years beginning January 2016
Interest shall be imposed at the rate calculated based on the federal short-term rate, rounded to the nearest whole number percent, plus five percent (5%) per annum on all unpaid income tax, unpaid estimated income tax and unpaid withholding tax. Interest shall be charged per month, or fraction of a month.
With respect to unpaid income tax and unpaid estimated income tax, a penalty equal to fifteen percent (15%) of the amount not timely paid shall be imposed.
With respect to any unpaid withholding tax, a penalty equal to fifty percent (50%) of the amount not timely paid shall be imposed.
The Tax Office shall impose a monthly penalty of twenty-five dollars ($25.00) for failure to timely file a return, regardless of the liability. The penalty shall be charged for each month, or fraction thereof, not to exceed a total of one hundred fifty dollars ($150.00).
Annual Interest Rates
By October 31 of 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 ORC Section 718.27(A)(5), and it is applicable to the tax years beginning on or after January 1, 2016.
Based on these requirements, the applicable interest rate is as follows:
| Calendar Year | Annual Rate | Monthly Rate |
|---|---|---|
| 2024 | 10.0% | 0.833% |
| 2023 | 7.0% | 0.583% |
| 2021-2022 | 5.0% | 0.42% |
| 2019 – 2020 | 7.0% | 0.583% |
| 2017-2018 | 6.0% | 0.5% |
| 2016 | 5.0% | 0.42% |