New Franklin to Akron
Ohio municipal income tax, Chapter 718 framework · credit set by New Franklin ordinance · tax year 2026
Work city takes
2.5%
Akron, on income earned there
Home city charges
2%
New Franklin, residents
Credit back
$1,200
capped by the ceiling
Cost of the commute
$300
a year, above working at home
What it costs you
ceiling bindsNew Franklin'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 New Franklin 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
- A credit with a ceiling is not a full credit. New Franklin hands back $1,200 of what Akron took and then stops, because its own rules cap the credit at about 2% of income. You make up the difference yourself. Over a year that difference is $300 you would not owe if you worked where you live.
- Akron pulls workers in from 19 different places, and this route from New Franklin ranks 9 of them by size. About 1,415 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.
- The credit here is real but bounded. New Franklin allows residents about 100% of tax paid to another municipality, subject to a ceiling of about 2% of income, and on this pairing it is the ceiling rather than the share that binds. Akron withholds $1,500 at about 2.5%; New Franklin returns $1,200 of that and collects the remainder of its own about 2% resident levy. The workplace accordingly costs $300 above the home-only position, against a total of $1,500.
- Akron is a major regional workplace, drawing recorded flows from 19 separate origins in this dataset. The route from New Franklin ranks 9 among them by worker count, at roughly 1,415. Rank is not a proxy for tax outcome: every origin faces the same Akron 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
| Akron takes, on income earned there | $1,500 |
|---|---|
| New Franklin charges residents | $1,200 |
| Less the credit New Franklin gives back | $1,200 |
| Total local tax | $1,500 |
| If you also lived in Akron | $1,200 |
| Difference | $300 |
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 Akron and New Franklin charge you. New Franklin may then hand back what Akron took, or part of it, or none of it. Everything on this page turns on which of those it does.
- One thing to keep in mind. Ohio does not require New Franklin to give any credit at all. That choice sits with the city, and cities revisit it. A vote in New Franklin could change what this commute to Akron costs you, with no change in the law itself.
- 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 Akron, and the credit from New Franklin does not touch it. If your district charges one, add it to everything here.
- These figures are the local layer alone. Whatever New Franklin and Akron 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 New Franklin 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 Akron 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. Akron taxes what is earned within its boundaries, New Franklin taxes its residents on everything, and New Franklin then credits some, all or none of what Akron collected. The credit is the entire mechanism, and it is set by New Franklin rather than by the state.
- The credit rule modeled here is New Franklin's own, adopted by ordinance and amendable by New Franklin 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 New Franklin can therefore change every figure on this page without anything altering in Akron 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 Akron, and no municipal credit applies to it. A resident of New Franklin 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 New Franklin and Akron, 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 New Franklin to Akron 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 Akron costs about 2.5%; living in New Franklin costs about 2%, reduced by whatever share of the work tax the home city recognizes.
What does crossing this boundary actually cost me?
About $300 a year. That is the gap between this commute and an identical job in New Franklin, and it exists purely because the boundary sits between them.
Is this a common enough commute to be worth modeling?
It is. 1,415 workers travel this pair, per the federal origin-destination survey; smaller routes fall below the publication floor and get no page.
How does a resident credit allocate liability between two municipalities?
Both jurisdictions assert a claim: Akron on the basis of work location at about 2.5%, New Franklin on residence at about 2%. 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 $300 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.
What is the basis for including this route?
Route volume is 1,415 workers, sourced from Census LODES origin-destination data. Pairs below the publication threshold are excluded rather than imputed, so page existence reflects measured commuting volume.