Madison Township to Columbus
Ohio municipal income tax, Chapter 718 framework · credit set by Madison Township ordinance · tax year 2026
Work city takes
2.5%
Columbus, on income earned there
Home city charges
1%
Madison Township, residents
Credit back
$0
nothing is credited
Cost of the commute
$1,500
a year, above working at home
What it costs you
no creditMadison Township credits nothing for tax paid to Columbus, so both bills stand in full. Solid is what you pay; the faded part of the Madison Township 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
- Madison Township gives its residents no credit for tax paid to another city. That single fact is the whole story of this commute. Work in Columbus and the same income is taxed twice, once where you earn it and once where you sleep. Together the two bills come to $2,100 a year. Bringing the job home would wipe out $1,500 of it.
- Columbus pulls workers in from 50 different places, and this route from Madison Township ranks 40 of them by size. About 764 people travel it. Being busier does not make it cheaper. The rate you pay depends on your home city, not on how crowded your road is.
- Neither municipality yields on this pairing. Columbus taxes income earned inside its boundaries at about 2.5%, and Madison Township taxes its residents' income wherever it is earned at about 1%. Madison Township allows no credit for tax paid to another municipality, so both liabilities stand undiminished — $1,500 to the workplace and $600 to the residence, $2,100 together at the reference salary. Ohio's uniform framework for municipal income tax standardizes administration across the state but leaves the credit itself to local ordinance, which is why it can be set at nothing at all.
- Columbus is a major regional workplace, drawing recorded flows from 50 separate origins in this dataset. The route from Madison Township ranks 40 among them by worker count, at roughly 764. Rank is not a proxy for tax outcome: every origin faces the same Columbus rate, and what differs between them is the home municipality's credit, so a smaller route can carry a considerably worse result than a larger one.
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
| Columbus takes, on income earned there | $1,500 |
|---|---|
| Madison Township charges residents | $600 |
| Less the credit Madison Township gives back | $0 |
| Total local tax | $2,100 |
| If you also lived in Columbus | $600 |
| Difference | $1,500 |
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 Columbus and Madison Township charge you. Madison Township may then hand back what Columbus took, or part of it, or none of it. Everything on this page turns on which of those it does.
- These figures rest on a local rule, not a state one. Madison Township decides how much credit to give for tax already paid to Columbus. It is worth confirming the current position with the city or its collection agency, because this is the part most likely to have changed.
- This page covers city income tax only. Your school district may charge its own on top, and many in Ohio do. That one follows your address in Madison Township rather than your workplace in Columbus, and it is not credited against anything.
- These figures are the local layer alone. Whatever Madison Township and Columbus 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.
- Every dollar amount here uses a salary of sixty thousand a year. It is a benchmark, not a guess at what people in Madison Township 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 Columbus 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. Columbus taxes what is earned within its boundaries, Madison Township taxes its residents on everything, and Madison Township then credits some, all or none of what Columbus collected. The credit is the entire mechanism, and it is set by Madison Township rather than by the state.
- The credit rule modeled here is Madison Township's own, adopted by ordinance and amendable by Madison Township 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 Madison Township can therefore change every figure on this page without anything altering in Columbus 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 Columbus, and no municipal credit applies to it. A resident of Madison Township 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 Madison Township and Columbus, 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 Madison Township to Columbus 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. Columbus taxes you for working there at about 2.5%; Madison Township then charges its own about 1% and credits part of the first against it. Whether anything is left over depends on how generous that credit is.
What does crossing this boundary actually cost me?
About $1,500 a year. That is the gap between this commute and an identical job in Madison Township, 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?
It is a local choice, and a costly one to make generous. Crediting in full would surrender the tax on every resident working outside Madison Township, so the credit is capped and the remainder lands on you.
Is this commute common enough for the numbers to mean anything?
It is a smaller route: 764 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: Columbus on the basis of work location at about 2.5%, Madison Township on residence at about 1%. 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 $1,500 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 764 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.