Hamilton wants to boost income tax: Here’s how it would change your paycheck

Hamilton has an income tax rate of 2 percent, but since at least 1995 the city has granted a 100 percent credit for income taxes that are paid in the cities where residents work. Under the proposed change, that credit would drop to 50 percent.

Here are examples of how the change in credits would affect residents, as provided by city officials:

Hamilton residents who work in Cincinnati

A Hamilton resident who works in Cincinnati (2.1 percent tax rate) now pays nothing to Hamilton but would pay $500 a year starting in 2019.

Hamilton residents who work in Middletown

A Hamilton resident earning $50,000 per year who works in Middletown, where the rate is 1.75 percent, now pays $125. That would jump to $562.50.

Hamilton residents who work in Fairfield

A Hamilton resident who earns $50,000 per year and works in Fairfield (which has a 1.5 percent income tax rate) now pays $250 a year to Hamilton. That person would pay $625 next year.

Hamilton resident who works in Oxford

A Hamilton resident who works in Oxford (2.0 rate) now pays nothing to Hamilton but would pay $500 a year starting in 2019.

Hamilton resident who works in the Hamilton/Indian Springs Joint Economic Development District

A Hamilton resident who works in the Hamilton/Indian Springs Joint Economic Development District now pays nothing to Hamilton but would pay $500 a year starting in 2019.

Hamilton residents who work in areas that don’t charge income tax

Hamilton residents earning $50,000 who work in areas that don’t charge income taxes — such as some cities and townships — already pay Hamilton’s 2.0 percent income tax rate, and would continue to do so. So their $1,000-per-year in taxes would not increase.

Hamilton residents who work in Hamilton

Hamilton residents who work in the city would see no increase in their taxes.

Hamilton residents who don’t earn wages

Also not affected would be Hamilton residents who don’t earn wages, including retirees.

A public hearing about the proposal is planned during council’s 6 p.m. June 27 meeting, with first and second considerations of the ordinance both on July 11.