Sugarcreek Township to Dayton
Ohio municipal income tax, Chapter 718 framework · credit set by Sugarcreek Township ordinance · tax year 2026
Work city takes
2.5%
Dayton, on income earned there
Home city charges
1.5%
Sugarcreek Township, residents
Credit back
$900
capped by the ceiling
Cost of the commute
$600
a year, above working at home
What it costs you
ceiling bindsSugarcreek Township'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 Sugarcreek 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
- A credit with a ceiling is not a full credit. Sugarcreek Township hands back $900 of what Dayton took and then stops, because its own rules cap the credit at about 1.5% of income. You make up the difference yourself. Over a year that difference is $600 you would not owe if you worked where you live.
- Plenty of towns feed Dayton. There are 11 of them in this data, and Sugarcreek Township ranks 9 by worker count with roughly 685 making the trip. The size of a route tells you about traffic. It tells you nothing about the tax.
- The credit here is real but bounded. Sugarcreek Township allows residents about 100% of tax paid to another municipality, subject to a ceiling of about 1.5% of income, and on this pairing it is the ceiling rather than the share that binds. Dayton withholds $1,500 at about 2.5%; Sugarcreek Township returns $900 of that and collects the remainder of its own about 1.5% resident levy. The workplace accordingly costs $600 above the home-only position, against a total of $1,500.
- Dayton is a major regional workplace, drawing recorded flows from 11 separate origins in this dataset. The route from Sugarcreek Township ranks 9 among them by worker count, at roughly 685. Rank is not a proxy for tax outcome: every origin faces the same Dayton 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
| Dayton takes, on income earned there | $1,500 |
|---|---|
| Sugarcreek Township charges residents | $900 |
| Less the credit Sugarcreek Township gives back | $900 |
| Total local tax | $1,500 |
| If you also lived in Dayton | $900 |
| 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
- 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 Sugarcreek Township: it may credit all of what Dayton 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.
- One thing to keep in mind. Ohio does not require Sugarcreek Township to give any credit at all. That choice sits with the city, and cities revisit it. A vote in Sugarcreek Township could change what this commute to Dayton costs you, with no change in the law itself.
- Watch for one more local tax. School district income tax is separate from what Sugarcreek Township and Dayton 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 Sugarcreek Township and Dayton. That is exactly why they are left out.
- 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 Sugarcreek Township. The percentages are the durable part of this page, and they do not shift with what you earn in Dayton.
- 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. Dayton taxes what is earned within its boundaries, Sugarcreek Township taxes its residents on everything, and Sugarcreek Township then credits some, all or none of what Dayton collected. The credit is the entire mechanism, and it is set by Sugarcreek Township rather than by the state.
- The credit rule modeled here is Sugarcreek Township's own, adopted by ordinance and amendable by Sugarcreek 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 Sugarcreek Township can therefore change every figure on this page without anything altering in Dayton 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 Dayton, and no municipal credit applies to it. A resident of Sugarcreek 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 Sugarcreek Township and Dayton, 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 Sugarcreek Township to Dayton 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. Dayton taxes you for working there at about 2.5%; Sugarcreek Township then charges its own about 1.5% 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 $600 a year. That is the gap between this commute and an identical job in Sugarcreek Township, and it exists purely because the boundary sits between them.
Is this commute common enough for the numbers to mean anything?
685 workers make this journey — enough to be published, but not a major corridor. The tax rules do not depend on how many people travel a route, so the figures hold regardless; the count only tells you how typical this pairing is.
How does a resident credit allocate liability between two municipalities?
Both jurisdictions assert a claim: Dayton on the basis of work location at about 2.5%, Sugarcreek Township on residence at about 1.5%. 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.
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 685 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.