Newark to New Albany
Ohio municipal income tax, Chapter 718 framework · credit set by Newark ordinance · tax year 2026
Work city takes
2%
New Albany, on income earned there
Home city charges
1.75%
Newark, residents
Credit back
$600
capped by the ceiling
Cost of the commute
$600
a year, above working at home
What it costs you
ceiling bindsNewark'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 Newark 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. Newark will credit tax paid to New Albany, but only up to about 1% of what you earn. Past that point you pay Newark too. The gap runs to $600 over a year, on top of $1,200 already withheld where you work.
- This route from Newark is 2 of 4 recorded commutes into New Albany, with around 699 people on it. Treat the ranking loosely. Only flows above a certain size are published at all.
- The credit here is real but bounded. Newark allows residents about 100% of tax paid to another municipality, subject to a ceiling of about 1% of income, and on this pairing it is the ceiling rather than the share that binds. New Albany withholds $1,200 at about 2%; Newark returns $600 of that and collects the remainder of its own about 1.75% resident levy. The workplace accordingly costs $600 above the home-only position, against a total of $1,650.
- New Albany records 4 qualifying commuting origins in this dataset, of which Newark ranks 2 by worker count at approximately 699. 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
| New Albany takes, on income earned there | $1,200 |
|---|---|
| Newark charges residents | $1,050 |
| Less the credit Newark gives back | $600 |
| Total local tax | $1,650 |
| If you also lived in New Albany | $1,050 |
| Difference | $600 |
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 New Albany and Newark charge you. Newark may then hand back what New Albany 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. Newark decides how much credit to give for tax already paid to New Albany. It is worth confirming the current position with the city or its collection agency, because this is the part most likely to have changed.
- Watch for one more local tax. School district income tax is separate from what Newark and New Albany charge, and plenty of Ohio districts levy it. Working elsewhere makes no difference to it, and no credit offsets it.
- One tax is on this page and it is the city one. State tax, federal tax and Social Security all still come out of your pay. None of them change when you cross the line between Newark and New Albany. That is exactly why they are left out.
- Every dollar amount here uses a salary of sixty thousand a year. It is a benchmark, not a guess at what people in Newark 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 New Albany 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. New Albany taxes what is earned within its boundaries, Newark taxes its residents on everything, and Newark then credits some, all or none of what New Albany collected. The credit is the entire mechanism, and it is set by Newark rather than by the state.
- The credit rule modeled here is Newark's own, adopted by ordinance and amendable by Newark 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 Newark can therefore change every figure on this page without anything altering in New Albany 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 New Albany, and no municipal credit applies to it. A resident of Newark 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 Newark and New Albany, 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 Newark to New Albany 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 New Albany costs about 2%; living in Newark costs about 1.75%, reduced by whatever share of the work tax the home city recognizes.
What does crossing this boundary actually cost me?
$600 a year more than if you worked where you live. It is not a commuting charge and it buys you nothing — it is what falls out of two jurisdictions both having a claim and only one of them yielding.
Is this commute common enough for the numbers to mean anything?
699 people travel it. Volume decides whether a route gets published at all, never what the tax on it is.
How does a resident credit allocate liability between two municipalities?
Both jurisdictions assert a claim: New Albany on the basis of work location at about 2%, Newark on residence at about 1.75%. 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 $600 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 measurement basis for a route of this size?
Route volume is 699 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.