Dayton to Troy
Ohio municipal income tax, Chapter 718 framework · credit set by Dayton ordinance · tax year 2026
Work city takes
1.75%
Troy, on income earned there
Home city charges
2.5%
Dayton, residents
Credit back
$1,050
a share of the work tax
Cost of the commute
$0
a year, above working at home
What it costs you
no extra local taxDayton credits only part of what Troy takes, so the remainder is taxed twice. Solid is what you pay; the faded part of the Dayton bar is the credit it hands back. Municipal income tax only — state, federal and payroll tax apply on top, and an Ohio school district income tax may too.
What this commute actually costs
- You can stop worrying about this one. Dayton credits everything Troy withholds, right up to its own rate of about 2.5%. Crossing the line to work adds nothing. Local income tax comes to $1,500 for the year, exactly as it would if the job were on your own street.
- Worth watching rather than worrying about. The credit from Dayton runs out once Troy takes more than the ceiling allows, and today there is $450 a year of slack. A rate rise in Troy would eat into that first, and into your pay after.
- This data records 2 commutes into Troy, and the one from Dayton ranks 2, carrying roughly 594 workers. That is a handful of routes rather than a full map of who works there.
- This pairing is neutral to the worker. Troy withholds about 1.75% on income earned there, and Dayton, which levies about 2.5% on residents, credits that payment in full without reaching its own ceiling. Liability at the reference salary is therefore $1,500 — precisely what the same earnings would attract with no commute at all. What the arrangement alters is the division of revenue between Troy and Dayton, not the sum leaving the worker's pay.
- The margin is worth knowing, because it is not large. Dayton credits tax paid to Troy only up to a ceiling set as a share of income, and Troy's levy currently sits below it with $450 of annual room to spare at the reference salary. Were Troy to raise its rate past that point, the excess would cease to be credited and would fall on the worker rather than on either treasury.
- Troy records 2 qualifying commuting origins in this dataset, of which Dayton ranks 2 by worker count at approximately 594. A workplace of this size draws from a small enough set of origins that the comparison is indicative rather than statistical, and the published floor excludes an unknown tail of smaller flows.
Where the money goes
A $75,000 salary
- Federal income tax$7,670
- Social Security and Medicare$5,738
- State income tax$1,346
- Yours$60,246
| Federal income tax10.23% | $7,670 |
|---|---|
| Social Security and Medicare7.65% | $5,738 |
| State income tax1.79% | $1,346 |
| Yours80.33% | $60,246 |
The arithmetic, step by step
| Troy takes, on income earned there | $1,050 |
|---|---|
| Dayton charges residents | $1,500 |
| Less the credit Dayton gives back | $1,050 |
| Total local tax | $1,500 |
| If you also lived in Troy | $1,500 |
| Difference | $0 |
On a reference salary of $60,000 a year. Both rates and the credit ceiling are shares of income, so every figure scales with your own pay.
What this page does not cover
- Here is the shape of it, because the arithmetic is easy to get wrong. You are taxed by both cities. What happens next is up to Dayton: it may credit all of what Troy took, some of it, or none at all. That choice belongs to the city rather than to the state, which is why identical salaries in neighboring towns land so differently.
- The credit rule on this page belongs to Dayton, not to the state. Its council sets it and its council can change it. Nothing needs to happen in Troy or at the state level for these numbers to move. Check the current rule before you rely on it.
- Ohio has a second local tax that is not on this page. Some school districts levy their own income tax. It depends on where you live, not on your job in Troy, and the credit from Dayton does not touch it. If your district charges one, add it to everything here.
- Do not read this as your whole tax bill. It is the part that answers to the commute between Dayton and Troy. State and federal tax carry on regardless, unchanged by which side of a city line your desk is on.
- Every dollar amount here uses a salary of sixty thousand a year. It is a benchmark, not a guess at what people in Dayton earn, because nobody publishes average pay for single municipalities. Scale the figures to your own salary. The rates and the credit work the same way at any income, so the Troy conclusion holds.
- Two misreadings bracket the correct answer and both are common. Ohio does not simply add the two rates together, which would overstate the charge; nor does it apply only the higher of them, which is Pennsylvania's rule and would understate it wherever the credit is partial. Troy taxes what is earned within its boundaries, Dayton taxes its residents on everything, and Dayton then credits some, all or none of what Troy collected. The credit is the entire mechanism, and it is set by Dayton rather than by the state.
- The credit rule modeled here is Dayton's own, adopted by ordinance and amendable by Dayton alone. Ohio's uniform framework governs definitions, filing and withholding; it does not compel any municipality to credit tax paid to another. A council vote in Dayton can therefore change every figure on this page without anything altering in Troy or in state law, which is a materially different exposure from a rate set by statute.
- Ohio school district income tax is a separate levy from municipal income tax and is excluded from these figures. It is imposed by school district of residence rather than by municipality, it is unaffected by employment in Troy, and no municipal credit applies to it. A resident of Dayton whose school district levies one owes it in addition to everything shown here, which is why the totals on this page are a municipal position rather than a complete local one.
- Only municipal income tax is modeled. Ohio's state income tax, federal income tax and payroll taxes all apply in addition and are invariant to the boundary between Dayton and Troy, which is precisely why they are excluded: isolating the layer that responds to the commute is the point of the comparison. A complete tax position requires adding them; a comparison of the two locations does not.
- Dollar figures are computed against a stated reference salary of sixty thousand rather than a municipal wage average, which no published source provides for Ohio municipalities. Both rates and the credit ceiling are proportional to income, so every figure scales linearly: the Dayton to Troy differential doubles at twice the salary and halves at half of it, and the rate relationship holds at every level. The one caveat is that whether the ceiling binds at all is itself scale-invariant here, because it too is expressed as a share of income rather than as a fixed dollar cap.
Questions people ask
Do I pay local tax twice — once where I work and once where I live?
Both places charge you, but the city you live in gives back some of what the other one took. Troy taxes you for working there at about 1.75%; Dayton then charges its own about 2.5% and credits part of the first against it. Whether anything is left over depends on how generous that credit is.
Does working in a different town cost me anything?
Nothing extra. The tax is redirected rather than increased, so this particular crossing costs you no more than working in Dayton would.
Is this commute common enough for the numbers to mean anything?
It is a smaller route: 594 workers. That affects how representative it is, not whether the tax arithmetic applies — the rules are the same on a quiet road as a busy one.
How does a resident credit allocate liability between two municipalities?
Both jurisdictions assert a claim: Troy on the basis of work location at about 1.75%, Dayton on residence at about 2.5%. The residence municipality grants a credit for tax paid to the work municipality, commonly capped as a share of income. Net liability is the residence tax less that credit, floored at zero, plus the work tax.
Why is the marginal cost of this crossing zero?
Marginal liability from working outside the residence jurisdiction is zero on this route. The crossing alters the distribution of revenue between jurisdictions but not the employee's total. ⚠️ This is route-specific and does not generalise to other pairs in the same dataset.
What is the measurement basis for a route of this size?
Route volume is 594 workers per Census LODES, above the publication floor but below the dataset's upper quartile. Liability is determined by jurisdictional rates and residence rules alone; commuter volume has no bearing on it and is reported only as context.