Delaware to Orange Township
Ohio municipal income tax, Chapter 718 framework · credit set by Delaware ordinance · tax year 2026
Work city takes
2%
Orange Township, on income earned there
Home city charges
1.85%
Delaware, residents
Credit back
$555
capped by the ceiling
Cost of the commute
$645
a year, above working at home
What it costs you
ceiling bindsDelaware's credit stops at its ceiling, so the rest of its own tax still applies. Solid is what you pay; the faded part of the Delaware 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
- There is a ceiling on this, and you have hit it. Delaware will credit tax paid to Orange Township, but only up to about 0.92% of what you earn. Past that point you pay Delaware too. The gap runs to $645 over a year, on top of $1,200 already withheld where you work.
- This route from Delaware is 2 of 2 recorded commutes into Orange Township, with around 854 people on it. Treat the ranking loosely. Only flows above a certain size are published at all.
- The credit here is real but bounded. Delaware allows residents about 50% of tax paid to another municipality, subject to a ceiling of about 0.92% of income, and on this pairing it is the ceiling rather than the share that binds. Orange Township withholds $1,200 at about 2%; Delaware returns $555 of that and collects the remainder of its own about 1.85% resident levy. The workplace accordingly costs $645 above the home-only position, against a total of $1,755.
- Orange Township records 2 qualifying commuting origins in this dataset, of which Delaware ranks 2 by worker count at approximately 854. 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
| Orange Township takes, on income earned there | $1,200 |
|---|---|
| Delaware charges residents | $1,110 |
| Less the credit Delaware gives back | $555 |
| Total local tax | $1,755 |
| If you also lived in Orange Township | $1,110 |
| Difference | $645 |
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
- Do not add the two rates up, and do not assume the bigger one simply wins. Neither is how Ohio works. Both Orange Township and Delaware charge you. Delaware may then hand back what Orange Township took, or part of it, or none of it. Everything on this page turns on which of those it does.
- The credit rule on this page belongs to Delaware, not to the state. Its council sets it and its council can change it. Nothing needs to happen in Orange Township 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 Orange Township, and the credit from Delaware does not touch it. If your district charges one, add it to everything here.
- These figures are the local layer alone. Whatever Delaware and Orange Township take sits on top of state, federal and payroll tax. Those three are the same wherever in Ohio you work, so putting them in would bury the difference this page is about.
- Sixty thousand a year is the assumption behind the dollars. It is stated rather than measured. No wage figure exists for a place the size of Delaware. The percentages are the durable part of this page, and they do not shift with what you earn in Orange Township.
- 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. Orange Township taxes what is earned within its boundaries, Delaware taxes its residents on everything, and Delaware then credits some, all or none of what Orange Township collected. The credit is the entire mechanism, and it is set by Delaware rather than by the state.
- The credit rule modeled here is Delaware's own, adopted by ordinance and amendable by Delaware 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 Delaware can therefore change every figure on this page without anything altering in Orange Township 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 Orange Township, and no municipal credit applies to it. A resident of Delaware 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 Delaware and Orange Township, 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 Delaware to Orange Township 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?
You are taxed by both, then given credit for one. Working in Orange Township costs about 2%; living in Delaware costs about 1.85%, reduced by whatever share of the work tax the home city recognizes.
What does crossing this boundary actually cost me?
About $645 a year. That is the gap between this commute and an identical job in Delaware, and it exists purely because the boundary sits between them.
Why does my home town not credit the whole of what the other one took?
Because the credit is set locally, and Delaware chose not to make it whole. A city that credits everything gives up revenue from every resident who works elsewhere, so most cap it — which is exactly where a commuter's extra cost comes from.
Is this commute common enough for the numbers to mean anything?
It is a smaller route: 854 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: Orange Township on the basis of work location at about 2%, Delaware on residence at about 1.85%. 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.
What is the marginal local tax cost of this commute?
Marginal annual liability attributable to working outside the residence jurisdiction is $645 at the reference salary. This is a tax cost rather than a commuting expense and is not deductible as one. It scales with income and with the rate differential, not with distance traveled.
Why is the residence credit less than the full work-district tax?
Credit rates and ceilings are set by the residence municipality, not by state law. A full credit would forgo residence-based revenue from every outbound commuter, so credits are commonly partial or capped as a share of income. The uncredited remainder is the commuter's marginal cost.
What is the measurement basis for a route of this size?
Route volume is 854 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.